Mortgage payment protection insurance
In today's uncertain economic times, it is well worth considering having a policy that will give you a monthly income that will protect your mortgage payments and other monthly commitments, if an injury or illness prevents you from working. This protection policy gives you peace of mind, security, and the premiums quality for tax relief at your top rate of tax.
When taking out a mortgage you will require two forms of insurance to complete the transaction:
- Mortgage protection insurance is a mandatory life insurance policy designed to pay your mortgage in the event of your death.
- Home insurance is a mandatory policy that covers your home and contents in the event of a fire or other peril.
The third form of cover outlined below is optional, but we highly recommend that you consider it carefully.
- Mortgage payment protection insurance is insurance that protects your income.
Mortgage Payment Protection is an income protection policy that will cover your mortgage repayments if you, as a PAYE employee or if you are self-employed are unable to work due to an accident or sickness.
Why do I need it?
Protecting your mortgage payments ensures you avoid running into arrears on your mortgage. If you are out of work long term you may not be able to afford your mortgage repayments. It is possible that you will need to sell your home if you cannot return to work.
Questions you need to consider are:
- What would happen if your income stopped because of ill health?
- How long will your employer pay your wages if you cannot work?
- If you have savings, how long will they last.
How long can I claim for?
You can claim under these policies to retirement age.
How much is the monthly benefit?
You can choose the level of monthly benefit that suits you. The maximum benefit is 75% of your normal gross salary. You can choose the period you must wait before you get a payout. Typical deferral choices are 13 weeks and 26 weeks. The shorter the deferral period, the higher the premium. You need to check with your employer how long your wages will be paid for if you are unable to work.
How much does it cost?
As a guide, for a monthly income of €2500 the cost after tax would be €31. This is based on a 30-year-old non-smoker with an annual level of protection of €30,000 and a 13-week deferral period.
Am I eligible?
To be eligible you need to be at least 18 years old and less than 57 at the start of the policy.
Underwriting is based on medical history and occupation category.
You will normally have been in full-time employment for at least 12 months immediately prior to the policy start date, to be an Irish Citizen, working and residing in Ireland.
Can I apply if I am unemployed?
No, you must have been in full-time employment for at least 12 months immediately prior to the policy start date.
Will you require medical evidence if I claim?
Yes, the insurance provider will require information from your doctor.
For further information call us now and we can explain your options to you and complete a full application over the phone. Please call 01 832 7250 and talk to one of our consultants or complete this enquiry form.
Please note that the above is only a guide, and full details of the policy terms are in the policy documentation.