Protection guide · Ireland

Mortgage Protection in Ireland

Mortgage protection is the life cover that clears your mortgage if you die — and lenders require it before drawdown. Here's what it costs, the types of cover, and how to arrange it without delaying your move.

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1. What is mortgage protection?

Mortgage protection is a form of life insurance that pays off your mortgage if you die during the term. Lenders require it to be in place before drawdown — for most buyers it's a legal requirement, not an optional extra.

It's designed to protect your family: if the worst happens, the policy clears the outstanding mortgage so your home isn't at risk.

2. How much does it cost?

Premiums are individually underwritten and depend on your age, health, the mortgage amount, the term, and smoker status. As an indication only (a healthy non-smoker, decreasing cover):

  • A 30-year-old with a €300,000 mortgage: roughly €30–€40 a month.
  • A 40-year-old with a €300,000 mortgage: roughly €60–€80 a month.

These are illustrative ranges — your own quote depends on your circumstances and the insurer's underwriting.

3. Types of cover

  • Decreasing term (standard mortgage protection) — the cover reduces over time in line with your falling mortgage balance. The cheapest option and what most buyers take.
  • Level term — the cover stays at the full amount throughout, so it pays out the full sum whenever a claim is made. More expensive, but leaves a surplus for your family.
  • Joint vs single life — a joint policy covers two lives (usually paying out on the first death); two single policies can sometimes give better value and more flexibility. We compare both.

4. When to arrange it

Arrange cover after your loan offer is received and ensure it's in place before drawdown. Don't leave it to the last minute: if the insurer raises medical questions or asks for a GP report, putting cover in place can take two to four weeks — and an unfinished policy will hold up your drawdown.

5. Can I use the bank's policy?

You can, but you don't have to. Your lender cannot insist you buy its own policy — the cover just has to be assigned to the mortgage. Shopping around across providers can save you a significant amount over the policy's life. We arrange mortgage protection as part of our full service and compare the market for you.

6. Serious illness cover

Serious (specified) illness cover is an optional add-on that pays a lump sum on diagnosis of a covered serious illness — independent of death. It's worth considering alongside your mortgage protection, particularly if you'd struggle to meet repayments during a long illness. We'll explain the options and costs so you can decide what's right for you.

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Common questions

Is mortgage protection required in Ireland?

Yes, in almost all cases. Lenders require mortgage protection life cover to be in place before they release the mortgage funds (drawdown). It's a legal requirement under the Consumer Credit Act for a mortgage on your home, with limited exemptions (for example, if you're over a certain age or can't get cover for health reasons). It is not optional for most buyers.

How much does mortgage protection cost?

It depends on your age, health, whether you smoke, and the mortgage amount and term. As an indication only, a healthy 30-year-old taking €300,000 of decreasing cover over a typical term might pay in the region of €30–€40 a month, while a 40-year-old on the same cover might pay around €60–€80. Your actual premium is individually underwritten — we get you quotes across providers.

What is the difference between mortgage protection and life insurance?

Mortgage protection is a specific, usually cheaper form of life insurance designed to clear your mortgage if you die. Standard (level term) life insurance pays a fixed lump sum to your family regardless of your mortgage balance. Mortgage protection cover typically decreases over time in line with your falling mortgage balance, which is why it costs less.

Can I shop around for mortgage protection?

Yes — and you should. You are never obliged to take the policy your lender offers. The cover simply has to be assigned to the mortgage. Shopping around across providers can save a meaningful amount over the life of the policy. We arrange mortgage protection as part of our service and compare providers for you.

When do I need to arrange mortgage protection?

Arrange it once your loan offer issues and before drawdown — but don't leave it to the very last minute. If the insurer asks follow-up medical questions or requests a GP report, it can take two to four weeks to put cover in place, which can delay your drawdown. Starting early keeps your move on schedule.

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