New Development In Mortgage Protection Insurance In Ireland

Mortgage protection life insurance, required by all home loan lenders has witnessed a fantastic new development in Ireland. Most people who have a mortgage will be familiar with this type of cover. It will repay the balance of your mortgage on death of either of the borrowers during the term of the mortgage.

NEW developments

The NEW development is that if you need to move home or change your mortgage you can now extend your existing policy into your new mortgage and new term. This important development is that the life cover you have in force can be extended to cover your new mortgage and without having to provide new medical evidence. Therefore an individual who is in bad health or has medical issues does not now have to declare them to extend their existing cover into their new loan. Where they are getting an increase in loan amount they now only need to have the aditional coverage underwritten by their insurer. This will save people a lot of money in the future and will allow people who have poor health to have some life insurance cover on their mortgage debts.

In my experience as a professional insurance adviser this type of policy causes some frustration to customers when they have been increasing or moving mortgages over the years. When individuals or a couple change their mortgage lender it usually involves an increase in the term of years they will be repaying their mortgage. This means that they have to re-apply for a new mortgage protection policy. Why? Their new homeloan lender wants the amount of coverage to be the same as the loan they are extending. Also they want the loan term to be exactly the same as the term on their loan offer. This cannot be achieved using the customers previous mortgage protection policy and hence their requirement to have a new one.

This requirement then exposes the client to be underwritten by a life insurer. No problem once they are in good health. If they are not, they could be refused or face an increased premium due to ill health.

So with this new market development the client whose health disimproves over the years, can continue their cover and only have to apply for the increased amount of cover. If refused on the extra coverage at least they can have a portion of their mortgage covered.

If you have purchased a mortgage protection policy in the last few years you should check out the current cost. Life insurance costs have reduced in Ireland due to competition and savings can be made now. You can check your cost on my website If you would like more information on this new development in mortgage protection please contact me through that site.