The Best Mortgage Protection Policy 2019

Which is the best policy?

There’s no simple answer to the question, but here’s how the policies we offer compare. You’ll find the best choice for you.

Greenway Financial Advisors currently arranges policies with Irish Life, New Ireland, Royal London, and Zurich.

Online quote calculators take into account basic details, and provide a standard price. Here are how the insurers compare for their minimum premiums. (Remember these figures can change based on individual details in your application)

Cheapest Possible Mortgage Protection Premium Per Month:

Cheapest Possible Mortgage Protection Premium Per Month:

In joint first place: Zurich – Min Premium €10 per month

In joint first place: Royal London – Min Premium €10 per month

In second place: Irish Life – Min Premium €13 per month

In third place: New Ireland – Min Premium €15 per month

Greenway Jargon Buster

A good price is important, but it’s not the only factor. Each insurer has different features to their policy, and knowing what they are can help you make the right choice for you and your family.

Mortgage Protection Policy Features:

Royal London Policy Features

Royal London offers Dual Life cover. This pays out for each life insured, but Royal London keep the price the same as their Joint Life policy, and children are covered for up to €5,000.

Their conversion option is also the cheapest, at an extra 5% (this allows you to convert the plan into a life insurance plan without additional medical questions). They offer a 15% discount to the market best premium (price-match premium).

Royal London also offers the Helping Hand range of supports, at no additional cost.

Irish Life Policy Features

Irish Life will allow you to change and adapt your policy without requiring a new application for the first 5 years of the plan. This means you can reduce your cover, or increase by up to 20%, or extend your term.

Irish Life also offers the Life Care range of supports at no extra cost, and from January 2019, all protection customers have access to premium membership and rewards with their MyLife health app.

Irish Life covers children up to €5,000.

New Ireland Policy Features

New Ireland offers a convertible Mortgage Protection policy, at a 10% increase to the premium.

They also offer a Reinstatement option for lapsed policies. With their Guaranteed Insurability, they will allow an increase to a maximum of €500,000.

Children are covered for up to €4,000.

Zurich Policy Features

Zurich offers Waiver of Premium, as an automatic additional benefit. If you can’t work due to illness or disability, Zurich will pay your premium after a period of 13 weeks has passed.

They will also reinstate your policy up to 90 days after the first missed premium payment.

Is Online Life Insurance Safe?

There have been some discussions in the news recently. Is your online life insurance safe?

The Financial Services and Pensions Ombudsman released their Overview of Complaints and Digest of Decisions in March 2019. It’s a fantastic set of anecdotes and explanations of their decisions in 2018.

It also illustrates some of the problems being faced by insurance customers who have had their claims refused or policies voided due to non-disclosure when applying.

What are the biggest problems?

While some complaints are due to poor customer service, many relate to non-disclosure of material facts that may affect the likelihood of claim being paid. In some cases this may result in an insurance policy being voided, leaving the customer in a terrible position where they may not be able to get another policy.

A recent article in the Independent raised some excellent points about why you should be extra vigilant when making online applications, for all these reasons.

There is a rush in the online market-place towards speedy transactions above all else. At Greenway we built our site to walk a fine line between speed, and our due diligence to our customers.

How do we do this to make your online insurance safe?

  • Our site was built by a team with website developers and financial advisors. Fact-checking is built-in.
  • Our online forms are subject to oversight by a qualified financial advisor. Where we see the need for more information, we make sure to ask for it.
  • As lovely as seamless online transactions are, we’re very aware that buying insurance isn’t like an Amazon purchase. As financial advisors, we have an obligation to ensure that you have the correct information, and correct product to decide. This is why we’re involved in all aspects of the process, no matter how shiny our site looks!
  • Different insurers ask the same questions in different ways. Different underwriting teams have different priorities. It’s our job to know these differences, and ensure we get that information from you at the time. We check, and re-check, until the application is ready.
  • We know the forms are long. That’s why we’ve split them into easy-to-read sections, with questions in plain English as much as possible.
  • We also know your time is precious. You can stop in the middle of filling one of our forms and save your work for later. This is useful whether you need to check details, or just get on with a busy life.

Our ethos:

We’re about people. We want our customers to have access to protection products that fit their needs, and we’re willing to do the work to make sure that happens. The definition of an insurance intermediary (like us) is that we work for you, the client.

What can you do to check you’re getting the right advice?

  • Look past the quote. That’s just the price, you need to know what you’ll be paying for. Make sure you can see product details & an overview of the features.
  • Don’t leave anything out in your application form. Add everything you can think of, and ask us if you’re not sure.
  • Be honest about smoking! And obviously, try to quit ASAP.
  • Check the online broker’s Terms of Business. We keep ours here. Some online brokers are ‘Execution Only‘:

A service offered by Insurance Brokers & Agents whereby they arrange the policy on behalf of the customer, but without giving any advice. A service only counts as ‘Execution-Only’ if the customer specifies the product, the insurance company, AND has not received any assistance from the broker in choosing either the firm, or the product.

If you’ve got questions, about policies you think you need, or about your existing policies, contact Greenway. We will never advise you to cancel a policy that’s working for you. We’ll also never advise you to apply for a product through us that isn’t right for your needs.

Co-Habitation and Mortgage Protection

It’s fine to not get hitched…

Weddings are extremely expensive. You and your partner made the right choice not to do it. You’re building a life that isn’t just about one day, and you’re very committed. You even have a house together!

With all this in mind, let’s have a quick check and make sure that your financial arrangements are as sensible as you are! Because you’ve got a house and a mortgage, you’ve got mortgage protection, right?

What is Mortgage Protection?

Why do you have mortgage protection? It’s fine to say ‘because the bank told me we had to’, most people start the same way.

But if you’re unsure what it covers, like a lot of people:

Mortgage Protection is an insurance policy against the loan you took out to buy your house.

It DOES pay off the loan in the event of your death.

It DOESN’T keep up payments on your mortgage if you’re unable to due to illness.

Ultimately it protects the bank against loss, and your dependents against debt and loss of their home if you die.

What effect does co-habitation have on Mortgage Protection?

And now we’re back to the marriage question. If you’re a co-habiting couple, an off-the-shelf joint mortgage protection policy could be a drastically wrong choice for you, and here is why:

As you have a jointly held mortgage, you probably assume that you each own half your house. With a joint mortgage protection policy, if one of you die, the bank will receive the money to pay their loan, so the property will be paid off.

However, if you aren’t married, and particularly if you have no children together, you’re strangers in the eyes of the law. If you both have wills, and are each other’s beneficiaries, you can leave each other your half of the property. Now is the time to join the 30% of the population who have wills. There’s never a better day than today.

I don’t have a Will!

If you don’t have children, your parents will receive your share of your home. It WON’T automatically go to your partner, no matter how sensible that might seem.

If you have no will, but DO have children, they could get your share, rather than your partner.

Death and Taxes

What will make this potentially worse is the inheritance tax. For taxation purposes, a co-habiting couple are treated as strangers, and the threshold for these inheritances is €16,250.

This means that any inheritance you receive from your partner, including their half of the home you own together, is taxed at 33% above €16,250. And it’s been a very long time since anyone purchased a house in Ireland costing €32,500.

This could put you in the very unenviable position of owing a large tax bill on a property that should, theoretically, be paid off outright at a time of need for you or your family.

To prevent a Revenue-related mess, you need to fix this situation now, by doing a few things:

Write a will. Immediately. It’s never too early, and you can find a link to tell you more here.

Fix your Mortgage Protection

The second thing is to look at your mortgage protection policy, and do two things:

Increase the amount to cover each of your tax liabilities, eg, if your mortgage is worth €300,000, and you each own 50%, then you would leave each other €150,000. After your €16,250 threshold, you would each still owe 33%, or €44,138 on the remaining €133,750.

So the answer in the example above is to increase the amount you’re insured for, to cover this tax liability. It’s easier to so this on a policy you own individually, rather than the group policy your bank offers you when you apply for your mortgage. If you both have individual means, and separate bank accounts, you can arrange single life ‘life of another’ policies, where you each pay for a policy insuring each other.

The third thing you’ll both need to do, depending on how many assets you have, is to effect a Section 72 policy, on a single life basis, nominating each other as the beneficiary. Section 72 policies are specifically for the purposes of paying off tax liabilities.

Or you could already be planning on getting married, just to avoid these potential pitfalls. No matter which course of action you choose, the only unacceptable one is doing nothing at all. You can run quotes for Life Insurance and Mortgage Protection below. If you have any questions at all, please contact us.

Online Brokers and Mortgage Protection Savings

Is Mortgage Protection through a broker different to the Mortgage Protection offered by your bank?

Online brokers can help make you some significant money and time savings on your mortgage protection.

There are a number of key differences between your online broker and your bank when you’re shopping for mortgage protection.

The most important one to remember is your broker works for you. We offer mortgage protection advice based on your whole life circumstances and look to build life-long relationships.

The second thing to remember is that your broker will arrange an individual policy, for you specifically. Your bank or mortgage lender will offer you access to a group policy owned by them.

Personal Qualified Service

With Brokers there is a higher probability you will talk to the same person through the whole process. From getting your mortgage protection quote or life insurance quote, filling in your application and getting your policy document sent, this means you won’t bounce around a call centre with your queries.

Our staff of fully Qualified Financial Advisors (QFA, LIA) are trained not to focus on selling you a product, but to advise you on the best course of action for you and your family.

Open When It Suits You

Online brokers work the exact same way as high street brokers, but we work when it suits you. Greenway is open from 9:00am to 9:00pm, Monday to Saturday, to answer any questions you may have.

The benefit of using online brokers that are open longer hours is that you can complete your mortgage protection or life insurance application from the comfort of your own dining table/sofa/car – wherever suits you.

No having to book time off work or sneaking out to take personal calls. Just call us when your day is finished!

Mortgage Protection Offers

When your bank gives you a quote for mortgage protection, they are only offering you a price from one provider. The sales advisors that you deal with for these group policies are called tied agents, meaning they deal with one insurance company exclusively.

For example Bank of Ireland exclusively offers Mortgage Protection policies from New Ireland Assurance. (Correct at time of writing 15/04/2019). This means Bank of Ireland can only offer mortgage protection through New Ireland.

Bank Of Ireland Example

InformationCoverage AmountMonthly Price
Two Lives, Non-smokers€250,000.00€28.15 [New Ireland]
Date Of Birth: 01/01/1985Term: 30 Years 

Greenway Example

InformationCoverage AmountMonthly Price
Two Lives, Non-smokers€250,000.00€25.11 [Royal London]
Date Of Birth: 01/01/1985Term: 30 Years 
Online brokers and mortgage protection savings

Using the example above an online broker could save you over €1000.00 on the lifetime of this mortgage protection.

Online brokers can offer you products from all major Irish insurers with whom they have agency agreements. This type of Insurance Intermediary is called an Insurance Agent or Broker. This means that they can give a fair analysis of the market. Currently Greenway can offer products from:

Because Online Brokers can offer more products they may be able to match something better to your life circumstances. There are subtle differences between each insurer’s products, and we can advise you.

Quick Application Process

In some cases where the mortgage protection or life insurance application has no outstanding medical requirements we can often get policies approved within 24 hours of receiving the full application.

You can fill in our online application form anytime during the day or night, and once one of our qualified financial advisors reviews and submits it to the insurer we will know how long approval will take.

Mortgage Protection – Make A Saving In Your 50s

What do Generation X and Baby Boomers have in common? You probably got Mortgage Protection before it was cool, like a lot of other things. This means there’s a chance you got your policy while it was more expensive too.

The cost of life insurance is getting lower for level term policies, due to increases in life expectancy. Your Mortgage Protection policy will work best for you if it’s a Decreasing Term Assurance.

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Jargon Explained

Decreasing Term Assurance: This means that as your mortgage decreases, the sum insured by your policy decreases.

In the past, people may have been sold Whole of Life policies as mortgage protection, for a sum that doesn’t decrease over time. If this is you, this could mean that a policy of €200,000 is insured against a property where you have only €50,000 remaining on your mortgage.

You could also have a policy that lasts until your death, but a mortgage that will be paid off in 5 years. Life cover is always a good idea, but cover on your mortgage, and cover on your life should always be separate.

A policy designed to cover a decreasing mortgage sum is the best option for you, with separate cover for your dependents and estate. As many as 20% of people aren’t sure how much they pay per month for Mortgage Protection. Equally, 33% of people admit some confusion about the difference between Mortgage Protection and other Life Insurance policies.

So why change mortgage protection?

In a nutshell, Mortgage Protection will pay off the remaining balance on your mortgage in the event of your death, and pays directly to your lender.

A Life Insurance policy pays out an insured sum in the event of your death. It can be a policy that you hold for a certain amount of time (term assurance), or until death (whole of life). Whole of life is more expensive, comparatively, than term assurance.

Mortgage Protection Medical Issues

If you currently have no medical issues, it’s a perfect time to investigate a new Mortgage Protection policy, as you could be offered cover for standard terms.

Mortgage Protection and smokers

Equally, when you first quoted for your cover, you may have been a smoker, and like many people you may have given up smoking, which can reduce the premium you’ll be offered.

The new premium you would pay could be reduced further because the mortgage sum and term you’re insuring are both smaller than at the time you originally purchased your policy.

Equally, if your original policy was part of the group policy offered by your lender, your potential savings could be pronounced.

There are estimates that switching policies could result in savings between €2,800 and €7,200, depending on your circumstances.

How to get your new policy in place.

  1. Dig through the paperwork drawer and find out your outstanding mortgage balance, and the remaining term with your lender.
  2. Get a quote from us for Mortgage Protection.
  3. Complete the fact-find, and we’ll let you know any potential changes to the standard price quoted.
  4. Apply online using our easy forms.
  5. Once your new policy is in place, (and only then!), you can cancel your old policy, and assign your new one to the bank.
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Whats Included:

Different types of mortgage protection policies.

Where to buy mortgage protection.

Features of each seller & much more.

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