What Is Mortgage Protection Insurance?
Mortgage protection insurance functions to pay off the outstanding balance on your mortgage in the event of your death. The policy operates for the mortgage duration and settles remaining amounts upon unexpected death. The product protects the borrower and the lender (in this case the bank) rather than beneficiaries, unlike traditional life insurance.
There are two main coverage types:
- Reducing term cover — The most common and cheapest form of mortgage protection in Ireland. Coverage decreases as the mortgage is paid down; premiums remain constant despite declining coverage.
- Level term cover — Coverage amount remains unchanged throughout the mortgage term. Upon death before mortgage payoff, the original insured amount is paid; any remaining balance transfers to the estate.
Need Help With Insurance?
Our experts at Selectra are here to help you compare insurance options and find the best cover — completely free.
Is Mortgage Protection Insurance Compulsory?
Yes — it is a legal requirement in Ireland when applying for a mortgage. Mortgage lenders will not approve applications without coverage. The lender must legally ensure that you have enough financial protection to pay off your mortgage before approving it.
Are There Any Exceptions?
Circumstances where lenders may waive the requirement include:
- Age exceeding 50 years
- Non-primary residence mortgages
- Existing life insurance coverage sufficient for mortgage payoff
- Medical ineligibility due to serious illness or occupational hazard
How Much Is Mortgage Protection Insurance?
Mortgage protection insurance can cost as little as €10–€15 per month. Cost variables include mortgage size, applicant age, health status, single vs. joint life coverage, policy type, provider selection, and smoking status.
Mortgage Protection Insurance Comparison — Ireland
| Company | Monthly Cost |
|---|---|
| Royal London | €16.33 |
| Zurich Life | €16.62 |
| New Ireland Assurance | €16.65 |
| Irish Life | €19.59 |
| Aviva | €19.59 |
Based on a couple in their early 30s with a €200,000 mortgage over 30 years (illustrative only). Last updated: March 2026.
Which Companies Offer Mortgage Protection Insurance in Ireland?
The main insurance companies and banks offering mortgage protection in Ireland include:
- Aviva
- Vhi
- Laya Life Insurance
- Irish Life
- New Ireland
- Royal London
- Zurich
- AIB
- Bank of Ireland
What Does Mortgage Protection Insurance in Ireland Cover?
Additional features may vary by company and can include:
- Guaranteed insurability — The ability to increase the level of cover or extend the term following certain life changes without giving additional medical evidence (e.g. if you have a child, marry, or buy a new house).
- Accidental death — Temporary cover for the time between when you submit your signed application and direct debit details, up until your application is approved or declined.
- Children's life cover — A fixed payout (€4,000–€7,000) if a child aged 3 months to 18 years (or 21 if in education) dies during the policy term.
- Terminal illness cover — If you are diagnosed with a terminal illness and have less than 12 months to live, payment in full will be made at that time.
Add-On Options
Serious Illness Cover lets you choose a lump sum equal to up to 100% of mortgage protection cover, which will then be paid out in full if you are diagnosed with one of the illnesses listed in your policy agreement.
Need Help With Insurance?
Our experts at Selectra are here to help you compare insurance options and find the best cover — completely free.
Can I Be Denied Mortgage Protection Insurance?
Possible grounds for denial include:
- Terminal illness diagnosis
- Multiple risk factors (obesity + smoking + heart disease/diabetes)
- Repeated self-harm episodes
- Alcoholism or excessive alcohol consumption indicators
- Body mass index exceeding 45
- Unconfirmed or under-review medical conditions
- Travel to high-risk dangerous locations
- Participation in extreme sports
Cancer Survivors and Mortgage Protection Insurance
Since 2023, insurance providers can ignore your cancer diagnosis if your treatment finished more than 7 years ago, or more than 5 years if you were diagnosed when you were under 18. Coverage applies up to €500,000.
When Should I Change My Mortgage Protection Insurance in Ireland?
Annual review is recommended, similar to home, car, and health insurance. Switching triggers include lifestyle improvements (such as smoking cessation within the past year) and new customer discounts from competitors.
Frequently Asked Questions About mortgage protection insurance
No. Mortgage protection protects you and the bank from the financial risk of your defaulting on your loan in the case of your unexpected death. Life insurance pays a lump sum to your dependents with a constant payout throughout the policy duration.
No. While banks offer policies, you are not obligated to take out a policy with them and are free to shop around for a cheaper quote.
Yes, if the amount you are insured for is equal to or greater than that of your mortgage. However, early death claims will direct most funds to mortgage payoff, leaving limited amounts for dependents.
Yes. You are free to switch to a new policy, potentially saving you thousands of euros per year on mortgage protection in Ireland. A new application with a possible GP report is required.
No. The product is designed to pay off your mortgage if you die, not to provide a cash sum to your dependents. Life insurance is needed for dependent lump sums.
Yes. If you pay off your mortgage early, you can cancel your mortgage protection policy. Continued payments can be directed toward beneficiary lump sums upon death.