Mortgage Protection Cover is a life policy designed to repay mortgage borrowings in the event of death of a borrower. It is the cheapest form of life cover.
It is a legal requirement that all lending institutions hold a mortgage protection life policy to repay their clients’ home loans in the event of death.
Life cover will start at the same level as your mortgage and will decrease in line with mortgage repayments made.
In the event that a joint mortgage application and joint life proposal has been made, then a mortgage protection policy will pay out on the first death.
There is an additional option to avail of Specified Illness Cover in addition to mortgage protection. This will pay off the mortgage in the event of you being diagnosed with a prescribed Specified illness. If Accelerated Specified Illness cover is selected then Insurers only pay on one element of cover i.e. either Mortgage Protection Cover or Specified Illness Cover.
Mortgage Protection Cover is the cheapest form of life insurance because the amount of cover reduces over the term of the policy.