If you have a Mortgage, please read on.…

In recent times, I've received numerous queries from homeowners who have purchased new properties locally. When taking out a mortgage, most mortgage companies require the buyer to have a mortgage protection policy in place as part of the contract signing. In the midst of the often-stressful process of buying a home, it can be tempting to go with the bank's offer for mortgage protection, as it seems like the simplest and most straightforward option. While there's nothing wrong with going through the bank, many homeowners are unaware that they are not obligated to buy the policy directly from them. In fact, you can shop around at any time to find a more competitive premium.

Mortgage protection is a form of life insurance specifically designed to decrease in value over time as your mortgage balance reduces. This contrasts with traditional life insurance policies, which typically remain at a fixed amount or even increase in value. The purpose of mortgage protection is to ensure that, in the event of your death, your mortgage is paid off, providing peace of mind that your family won’t be burdened with the remaining mortgage balance.

When people reach out to me to review their mortgage protection, I have access to a range of providers and am able to compare premiums from different companies. This allows me to find the most competitive rates available, and I often recommend enquiring about ways to reduce monthly premiums. Life insurance companies occasionally offer brokers special deals, such as reduced rates or additional benefits, which could make a difference in your coverage.

I’ve had cases where, after reviewing mortgage protection policies from the last few years, I've managed to save clients anywhere between 10% and 30% on their premiums, while maintaining the same level of coverage. For example, if your mortgage protection premium is €50 per month over a 25-year mortgage term, saving just 20% on the premium could result in savings of up to €3,000 over the entire term.

Even if you’ve recently taken out a policy, you are not bound to keep it in place as long as you secure a suitable alternative. However, it’s important to note that you should never cancel your life assurance until replacement cover is fully set up and active.