So, one of the questions we always get asked  is to explain the difference between mortgage protection and life insurance  insurance pays out a tax-free lump sum if you should die during the term of the policy, Its possible to have single life cover where only one person is insured on the policy or joint life or dual life cover where two people are insured on one policy Life insurance can give you peace of mind that your family will be financially secure if the worst should happen So lets say you take out a level life insurance policy of €300,000 over 30 years If you died at any time during the 30-year term of the policy a tax-free lump sum of €300,000 will be paid out your estate – its that simple

   mortgage protection is a type of life insurance that will pay off the balance of your outstanding mortgage if you were to pass away during the term of your loan So, the cover that you are insured for actually reduces each year in line with your mortgage For this reason its a cheaper form of cover than life insurance So, mortgage protection is compulsory in Ireland if you want to draw down your mortgage and move into your home you are going to need to take out mortgage protection, So, if you are looking for a mortgage, its important to apply early in the process so that your loan drawdown isn’t  delayed Absolutely not – you are free to shop around with all of the providers and, in doing so, make sure you get the best price Unless you qualify for a waiver, you will have to take out mortgage protection Whether you need life cover as well will depend on your situation For example, you may need extra cover if you have family or dependents who are reliant upon your income If you have a young family, you may need more cover because the benefit will have to last for longer On the other hand, you may not need any cover if you have no dependents or children who rely on your income Before taking out life insurance its always important to speak with a qualified financial advisor, who will complete a full financial review and help with your decision.

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