Mortgage Protection What is Mortgage Protection?If you die during the term of your plan, a Mortgage Protection policy will pay off whatever is left of your mortgage. Do I really need Mortgage Protection?If you have a mortgage, you need Mortgage Protection. Your bank will invariably require you to have a Mortgage Protection policy in place before giving you a mortgage. Which type of policy should I choose?This will depend heavily on your own circumstances and the kind of payment you want your family to receive. There are a number of different options:Reducing term life insuranceReducing term life insurance with serious illnessLevel term life insuranceLevel term life insurance with serious illnessWe can talk you through each alternative and help you to choose the right one. What type of cover should I take for my mortgage?If you have a capital and interest mortgage and the amount you owe gets lower and lower over time, you will likely need a Mortgage Protection policy or Decreasing Term Cover.However, if your mortgage is Interest Only then you’ll need a Level Term Life Insurance Policy. How much cover will I need?You will have to cover the current outstanding balance on your mortgage for the remaining term of your mortgage.For new mortgages, you’ll need to cover the amount you’re borrowing over the term of your mortgage When should I apply for my Mortgage Protection Plan?If you’re in the process of applying for a new mortgage, then you should apply approximately 3 months before you want to draw down on your loan.If you’re trying to change life cover providers (i.e. you already have your loan), you can apply at any time. How do I apply for Mortgage Protection?The first step is getting a quote online. Contact us and we’ll take care of the rest. Will I need a medical?Generally speaking, the insurance provider will not ask you to do a medical but it is necessary in certain situations. Older applicants and people with an existing medical condition are more likely to be asked to attend a medical. This will be free of charge. Will my premiums increase?Your premiums will never increase on your Mortgage Protection plan. Can I cancel my policy?Yes. If you stop paying premiums, you policy will lapse and your cover will cease. In this instance, there will be no pay-out at the end of the plan. If your policy is to cover your mortgage, then you’ll need the mortgage provider’s permission in order to cancel the policy. Life Insurance What is Life Insurance?Life Insurance provides a safety net for your loved ones in the event your death. It ensures that the people who rely on your income won’t have to struggle financially if the unthinkable happens. Do I really need it?As Life Insurance is aimed at providing relief to the people who are dependent on your salary, if you don’t have dependents (e.g. children or a partner), you might decide that this type of policy isn’t for you.However, most mortgage providers insist on Life Insurance cover as part of their lending policy and on mortgage drawdown. How much cover do I need?This is completely up to you. You might want to leave behind enough to pay off any of borrowings in your name or you might want to provide your family with the finances they’ll need to get by in the future. Are there different types of policies?Yes. One option is to cover the term of your mortgage, which is generally 20-25 years. You can also link it to the age of your dependents, i.e. pay out when they reach a certain age. How long will I need cover for?This is ultimately your decision but the greater the length of time, the higher the premium will be. It is better, however, to apply when you’re young.Personal Life insurance is taken out to protect the financial security of your dependants. For this reason the most common duration of a Personal Life Insurance policy is between 20 and 25 years or until your dependants have completed full-time education.For mortgage-related Life Insurance, it must be for the term of the mortgage. Is everyone eligible for Life Insurance?Not exactly. Although anyone can apply, the reality is that only less risky applicants are accepted. If you apply for Life Insurance, you will be asked a number of questions regarding your lifestyle, general health and medical history. Depending on the answers to these questions, it might also be necessary to go for a medical.It’s vitally important that you tell the truth during the application process. If you don’t, your policy might be invalidated which could leave your loved ones financially exposed. How is my premium calculated?Your age, medical history, the term of your policy and the amount you would like to cover are all factors which will be taken into consideration. Smokers can expect to pay more. How do I apply for Life Insurance?Simply apply online by contacting us and we’ll send you a quote. Will I need to go for a medical?Not necessarily. If you have an existing medical condition, the insurer will ask for a medical report from your doctor. When should I apply for my Mortgage Protection insurance policy?It’s advisable to apply for your life insurance as early as possible but no longer than three months before the cover needs to be in place. For a Mortgage Protection insurance policy, you’ll have to give the bank your policy documents a few of days before you draw down the mortgage with them. Serious Illness Cover What is Serious Illness Cover?Serious Illness insurance pays out a lump sum if you happen to be diagnosed with one of the specific illnesses or disabilities that your policy covers. It’s also sometimes called Critical Illness Cover. How much cover will I need?This depends on your own personal circumstances and will vary greatly from person to person. It’s advisable to have enough to pay off any outstanding loans you might have but if covering your mortgage is too expensive, you might consider covering a portion of it. How long do I need the cover for?It’s entirely up to you but cover is often taken out for a similar term as your Life Insurance or Mortgage Protection plan. How do I apply?We can guide you through the process from start to finish. The first step is applying for a quote online. Simply contact us and answer some basic questions. I already have a policy but want to replace it. Should I cancel the old one?Don’t cancel your current policy until the new one is officially in place. Will I need to do a medical?It’s possible but not mandatory. The insurance provider may ask you to go for a medical if you have an existing medical condition, or they may just request a report from your doctor. Really it depends on your circumstances and the type of policy you’re taking out. When will I receive my official documentation?Once the policy is accepted by the insurance provider, you can let us know when you want the policy to start. We can then forward on the original documents. This generally takes around five days. Can I opt out?There’s a 30 day period from the day you receive your documents during which you can cancel your policy. Can I cancel my policy?Your policy can be cancelled at any time. You will, however, need to get your mortgage provider’s permission to cancel if the policy was to cover your mortgage. Income Protection What is Income Protection?Income protection provides you with a regular income if you’re unable to work due to illness or injury.The payment begins once you have been out of work for a certain length of time (the “deferred period”) and continues until you can go back to work or you reach your retirement age. Do I really need it?Imagine if the unthinkable happens and you get sick or injured. Would you and your family be able to get by without your regular income?Income Protection provides you and your loved ones with a safety net should something unfortunate like an injury or illness occur. Does it matter what my occupation is?Yes. Some jobs are more dangerous than others and, as such, not all can be covered by Income Protection. If your profession carries with it some risk, e.g. if you work with dangerous materials or in a potentially hazardous environment, you might not be eligible for cover. How much cover will I need?The maximum amount of cover possible is 75% of your earnings minus any social welfare entitlement. Can everyone get Income Protection?As long as you are in full-time paid work either as a self-employed person, an employee or a company director you are eligible for Income Protection. Let’s say I get injured. How long before I start to receive payments?It depends on your deferred period as laid out in your policy. Deferred periods can range from 4 to 52 weeks. Which deferred period should I choose?How long would your savings last if you had no regular income? You should also bear in mind that the length of the deferred period will affect the monthly cost of your policy. What’s the difference between a Guaranteed Plan and a Reviewable Plan?With a Guaranteed Plan means the cost of your policy remains the same for the duration of the plan. If you take out a Reviewable Plan, however, the insurance provider can review the premium charged. Will my premium increase?If you choose indexation, then your premiums (and benefits) will increase year on year to keep in line with inflation. If you choose the Reviewable Plan, the insurance company can review and change the cost of your plan. This usually happens every 5 years. How do I apply?Simply contact us to get a quote online. You’ll be sent the cheapest quote available. If you’re pleased with what you see, just let us know and we’ll guide you through the rest of the process.