Mortgage protection & life insurance

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Pinoy adventure

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Hi all

What are the requirements for drawdown of a mortgage from an insurance point of view ?

Is mortgage protection enough for drawdown ? Or would life insurance be better suited ? Or both ?

Would there be any recommendations for both,company wise ??

Thanks
 
Any policy that basically pays out an amount equal to outstanding mortgage over the term of the mortgage if you die will do the bank.

After that there are many permutations of it from the basic decreasing mortgage protection that just clears outstanding amount if you die to other types like level term which pay out the amount insured day one regardless of what's owing plus other options as well. If unsure best to talk to a broker maybe to see what best suits your needs.
 
Pinoy adventure said:
Hi all

What are the requirements for drawdown of a mortgage from an insurance point of view ?

Is mortgage protection enough for drawdown ? Or would life insurance be better suited ? Or both ?

Would there be any recommendations for both,company wise ??

Thanks
Click to expand...
Mortgage protection is life assurance. The difference is that is decreases over time whereas life cover stays level or increases (if it is index linked). You only need mortgage protection for the bank, so that is what you should get (it is cheaper). If you want life cover to protect your family financially, you should take this out separately.


Steven
www.bluewaterfp.ie
 
Monbretia said:
Any policy that basically pays out an amount equal to outstanding mortgage over the term of the mortgage if you die will do the bank.

After that there are many permutations of it from the basic decreasing mortgage protection that just clears outstanding amount if you die to other types like level term which pay out the amount insured day one regardless of what's owing plus other options as well. If unsure best to talk to a broker maybe to see what best suits your needs.
Click to expand...

Monbretia said:
Sorry been out of finance for a long time now and don't know who is good or not at this stage!
Click to expand...
Ok thanks.
I’m assuming they all wants ones money at the end of the day.
 
If you think you might be trading up in future when you are older in age Id suggest life cover.

Later in life it might be more difficult to get cover due to health issues. Life Cover would be more transferrable / reusable as the sum insured doesnt reduce.

Obviously you wil have to pay more though.
 
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