What type of life insurance is required by AIB for a mortgage?

What type of life insurance is required by AIB for a mortgage?

When I go online i get confused over mortgage protection insurance and life insurance. I know one cover the mortgage and the other will pay a lump sum to my family upon my death. Whaich one is sufficient for the bank?

Also for life assurance, how much should I insure for?

Mortgage protection (decreasing life insurance) is all you need for the mortgage. It should cover the mortgage amount and the term.

Life insurance on the other hand is designed to replace income lost on death. It is based on your salary and the length of time it will need to be replaced.

In very simple terms

Say your family would need €2000 per month for the next 25 years if you die unexpectedly.

Then you should have a minimum life insurance policy of
€2000 x 12 x 25 = €600,000.

You might also want to provide for college education and other major life events so should factor that in.

As you can see it's impossible to answer your question without having more details. Speak to a financial advisor who will go through this with you step by step.

Thanks for your reply. So all I need is mortgage protection insurance. Cheers.