Mortgage Protection Donegal – Securing What Matters Most!

If you die prematurely your mortgage is cleared so make sure you have the correct insurance for you.

What is mortgage protection?

If you have a mortgage on your family home, you are legally required (with some exceptions) to have life insurance cover to pay off the mortgage should you die before the end of the mortgage term. This is called Mortgage Protection cover.

Should you buy it from my mortgage provider?

Most lenders offer this cover as part of their home loan package. However you are not obliged to take their cover. You can arrange such cover yourself and there are many advantages in doing so:

  • With help from your Financial Broker you can search the market for the most competitive mortgage protection policy cover available (lenders typically use just one insurer for their mortgage protection cover).
  • You own the cover yourself so if you move to a different lender, you can take the cover with you. Lender’s mortgage protection cover, on the other hand, ceases when you move your mortgage to a different lender and you would then have to take out fresh cover.

Free Guide to Mortgage Protection Donegal

Click on the link below to download free guide to mortgages.


  • How old you are when you take out the cover 
  • How long you want the cover
  • The level of cover you want, and whether you want this cover to increase annually, say at 3% per year.
  • Your general health
  • Whether you smoke or not (smokers will be charged more than non-smokers for the same cover)
  • What additional benefits and options you want to add on

Best Prices Quoted

Our Mortgage Protection policies begin at €10.10 depending on your specfic requirements.

Switching is Easy

You can switch providers without incurring any costs. As brokers we will research the market place to bring you the best cover (for you) at the best available price. At Advice First our Key Focus is our customers. We are committed to providing you with a quality service at all times.

At a Glance

  • Cash lump sum to be paid out when you die to help clear your mortgage
  • Cover the full term of your mortgage
  • We’ll get you the best deal from our panel of insurers
  • Paid to your next of kin or your lender (dependent on how the policy is set up) with minimum fuss 
  • Cancel the policy at any time without penalty
  • Pay monthly by direct debit to spread the cost

Still Unsure?

Why not take advantage of our Protection Review, this review will give you a professional assessment on how well your existing arrangements meet your needs and may even save you money.

Important Note: You do not have to take out mortgage protection insurance if: you are aged over 50; the mortgage is not on your principal private residence; you cannot get the insurance or can only get it at a much higher premium than normal. These are exemptions to the legal requirement to have mortgage protection life cover in place. However, your lender may still specify mortgage protection life cover as a condition of the loan offer even if these exemptions apply to you.

The above if for information purposes only and does not constitute financial advice in any way, we recommend that you speak with us before making any financial decisions. We recommend a holistic approach to financial planning and we can help you put your plans in place.

Call us today in Letterkenny: 074 910 3938

Frequently Asked Questions About Mortgage Protection

What is Mortgage Protection?

If you’ve decided to get a mortgage, it is a big investment and it is important to have the right insurance policy in place to protect your valuable asset.

Mortgage protection is a dedicated type of life insuranceand is usually compulsory if you are buying or building your home and taking a mortgage. It ensures that your family will be relieved of the financial burden of repaying the mortgage, should the unexpected happen.
If you are buying a rental / investment property is not always a condition of the loan offer to put mortgage protection in place, all though it is good advice to do so.

Lenders will often offer mortgage protection too, however, it is advisable to shop around to see where you can get the best value for money. You should speck with a trusted Financial Broker

How does Mortgage Protection work?

When you take out a mortgage, your provider will insist that you have enough cover in place. This is to protect you in the event of your untimely death or diagnosis of a specified serious illness, leading to an inability for you to pay the mortgage by paying a premium each month for a specified term, the policy will pay out a lump sum if the unexpected happens. The cover provided decreases over the term of the plan, broadly in line with the capital outstanding on your mortgage. There is no guarantee though that the level of cover will reduce in line with the mortgage balance, so it is very important to review the policy at least annually.

What details do I need to provide when applying for Mortgage Protection?

Our expert advisers will take you through the application process

They will ask questions about your lifestyle (e.g., your hobbies, your smoking and alcohol consumption), your occupation, your medical history, such as whether you have any pre-existing conditions or been to see your GP recently and the outcome, regular check-ups, cold and flu stuff is not important, your family’s medical history.

With your consent, your doctor may be contacted to provide a report on your health depending on your health, age, type and amount of policy you want to take out.

These details are required by the insurance company to assess the appropriate premium. It is extremely important that you fill out this form truthfully and in full, as these details are fundamental to your contract. If you have any doubts as to whether something is relevant or not you should include it. This will mean that if you or your family do need to claim in the future, you can be confident that the claim will run smoothly.

Do I need attend a doctor to put in place Mortgage Protection?

If you have had an illness in the past that the insurance company needs to know more about, or
If the amount of cover you require is very large, you may be asked to attend a doctor for examination and/or tests, you may also be asked to do a medical examination with an independent doctor and in some case this examination can be done in your home with a qualified nurse. Your advisor will be able to advice the likelihood of this being required. This process is known as underwriting requirements

Will I be required to undertake a medical examination?

For the large majority of applications, a medical examination is not necessary. Depending on the level of cover sought or information provided in your application, you may be asked to undergo a medical examination with an independent doctor or nurse.  The medical can be arranged at a convenient location and life insurance company will cover the cost. Your advisor should be able to let you know whether this will be required or not.

Can I change your mortgage protection if I change your mortgage?

If you increase the amount of your mortgage or extend the term, you need to amend your mortgage protection as well. In some case the mortgage protection policy can be amend but not always, you may need to put another policy in place to suit the new mortgage terms. Your advisor will be able to let you know the options available on your policy.

Who is covered on a mortgage protection policy?

Your Mortgage Protection policy pays out on the death of the person(s) named on the policy.

You can either cover:

A single life i.e., if the mortgage is in one name.
2 lives i.e., if the mortgage is in two names.

If the policy is covering 2 lives, the policy will pay out when the first of the 2 lives named die and the policy will then end.

If I die who is the benefit paid to?

  • If the Mortgage Protection policy is required by your lender to repay your mortgage and has been assigned to them, the benefit will be paid directly to your lender.
  • If the amount of cover is greater than the balance due on the mortgage, the remainder will be paid to your estate.
  • If the amount of cover is less than the balance due on the mortgage, the remainder will be owed to the lender by your estate.

Who is mortgage protection for?

  • Anyone taking out a mortgage to buy or build their home is required by their lender to have mortgage protection in place. Many people take out a policy with their mortgage provider, but it’s always a good idea to shop around.
    Not only does this allow you to see the best premium available to you, but it ensures that you get the most suitable product for your needs. 
    Mortgage Providers are usual tried to one provider so do not offer a market view nor do they shop around.

    Always shop around for your mortgage protection

Is mortgage protection tax deductible?

There are no tax benefits to be gained from mortgage protection, but with income protection tax deductibles are available. Should the benefit be paid out there is no tax due on it.

Is mortgage protection the same as repayment protection insurance (PPI)?

Mortgage protection is not the same as payment protection insurance (PPI). PPI is a type of income protection and with PPI you are covered for repayments on finance such as a shorter-term loan. Mortgage protection only covers mortgage payments. PPI is not sold in Ireland anymore.

What happens to my mortgage protection if I pay my mortgage off early?

If you pay off your mortgage before your mortgage protection policy expires, you can cancel your mortgage protection cover. You will need to inform your provider of this fact. If the policy has been assigned to a lender, the mortgage provider will seek confirmation from the lender.

Can I use an existing policy to cover an existing mortgage?

Yes, you can use an existing life insurance policy as long as:

  • It is not in place to cover another loan or mortgage.
  • The amount you are insured for is at least equal to amount of your mortgage and the term of the policy is at least the same term as your mortgage.
  • You would have to ‘assign’ the policy to your lender. This means you would agree to give your lender, the life insurance benefit to pay off your mortgage if you died during the term

Can you change the amount of cover on the policy?

Your ability to amend your Life Cover amount depends on the type of policy you choose:

Some policies have a convertible option included which allows you to convert the policy to a new one, either to increase the cover and or extend the term, without providing medical evidence.

Some policies don’t allow you to change the cover amount and require you to apply for a new policy.

If the amount of cover is being increased or the term extended, you may need to provide medical evidence for the increase in cover or term extension.

Some policies have a Guaranteed Insurability Option that allows you to increase the amount of cover within 3 months of moving house, getting married or having or adopting a child without having to provide evidence of health.

You should speck with your financial broker or your provider

What happens on acceptance of my application/ when do I receive my policy document?

If your application is accepted and you have indicated when you want the cover to start, the policy will have been set up taking your wishes into account and send you your policy documents. If you have not indicated when you want the cover to start you will be contacted and the policy documents will be issued in due course.

Policy documents will be posted to you.  They include a policy schedule which contains the specific details of your cover (type and amount of cover, term of cover etc) and the policy conditions which set out the policy terms and conditions (e.g., definitions of terms, when the cover is payable etc.). You should keep the policy documents in a safe place for future reference.

How soon should I apply for my policy if it is to uses as security for a loan/ mortgage?

We recommend that you apply for your cover at least 6 to 8 weeks in advance of the date you plan to draw down your mortgage. If your application is accepted, you will be informed, and your application can be kept on hold until you are ready to draw-down your mortgage.

Will the amount I pay change during the term of my policy?

No, the amount you pay is set at the start of the policy and is guaranteed for the term of the policy.

Will the level of cover reduce over the term of the policy?

Yes, the level of cover and the term of the Mortgage Protection policy should start out the same as your mortgage, and then reduce as your mortgage balance is reduced. Please note: It is important to review the policy annually to make sure there is always enough life cover to clear the mortgage balance.

My policy has recently lapsed, and I wish to restart it, is this possible and if so, how can I do this?

While it depends on the terms and conditions set out in your policy conditions, it is usually possible to re-instate your policy within one year from the date that the first unpaid premium was due. Restarting your policy is subject to the payment of all outstanding premiums and also requires that each life insured completes a Declaration of Health Form which will be subject to underwriting. You should contact the life assurance company, or your Financial Advisor and they will be happy to assist you.

What happened if I stop paying the premiums?

It is your responsibility to ensure that your premiums are paid and received by the life cover when due.
If the life company does not receive your premiums when due, you stop paying your premiums or cancel your policy during the term, then your policy and any protection benefits it offers, will cease and no benefits will be payable.
In most cases the life company will allow you 30 days for payment from the date that the premium is due. If the premium is not received within 30 days of being due your policy and protection benefits will cancel immediately without notice and you will no longer be on cover for any protection benefits. If you have assigned your policy, the life company will notify the assignee (the lender) that premiums have not been paid and that cover no longer applies.

Do I have to take out the mortgage Protection with my mortgage provider?

Absolutely not, and in fact we would recommend you don’t.

The lenders with often make you under the illusion that you must take out mortgage protection with them.
Well, you don’t and by doing so you could be missing out on big savings by not shopping around.

Banks and lenders will usually offer you their own mortgage protection prior to you drawing down your mortgage loan. And while it might seem convenient to go with the same company for both your mortgage and your insurance, by law you’re under no obligation to take out mortgage protection with the same lender or bank that is giving you your mortgage.

Not buying mortgage protection from your lender won’t affect your application in any way and quite often it can be cheaper and quicker to buy your mortgage protection elsewhere.

That’s because banks are tied to a sole life insurer and can offer you just one price for mortgage protection. However, Financial brokers like Advice First will compare prices across multiple insurers to find the best cover for your needs. And when it’s time to buy, our dedicated team can arrange cover for mortgage protection in as little as one hour in some cases.
So, there is no need to worry about any impact or delay using us might have on your mortgage application or drawdown date.

The competition and customer protection commission also recommends shopping around.

Link to video.

Advice First | Letterkenny | Donegal