Mortgage protection
Clears the balance of your mortgage if you die during the mortgage term, so your family keeps the home without the debt. Required for most mortgages in Ireland, but you do not have to buy it from your lender.
What it is
Mortgage protection is a form of decreasing term assurance that runs alongside your mortgage. As you pay the loan down, the cover reduces in step with it, so at any point there is enough to clear whatever is left. If you die during the term, it pays the lender directly and the home is owned outright, with no mortgage hanging over the people you leave behind.
You must have it, but not from your lender
Under the Consumer Credit Act 1995, most people taking out a residential mortgage in Ireland are required to have mortgage protection in place. There are limited exemptions, for example some borrowers over 50, second and holiday homes, and people who cannot get cover for health reasons. Your lender will offer you a policy, but you are free to arrange it elsewhere, and doing so often costs less for exactly the same protection. The lender cannot insist you buy theirs.
Who it is for
- Anyone taking out or switching a residential mortgage
- Joint borrowers who want both lives covered
- People remortgaging, who can review and often reduce their premium
- First-time buyers arranging cover to complete their purchase
How it works
The cover is set to match your mortgage amount and term, and the sum reduces as the balance does. The premium is usually level. Joint borrowers normally take joint life cover, which pays on the first death. Standard mortgage protection decreases with the loan, though some people choose level term instead so that any surplus over the outstanding balance passes to the family. We explain the trade-off and set it up to complete alongside the mortgage.
Common questions
No. You must have cover, but you can arrange it with any insurer, and shopping around usually costs less than the lender’s own policy.
Mortgage protection is tied to the loan and decreases as you repay it. Life cover is a lump sum you choose, which does not have to reduce.
Often yes, subject to health. Remortgaging or switching provider is a good moment to review the cover.
Joint borrowers usually both take cover so the mortgage is cleared whichever of you dies. We advise on the right structure.
Other kinds of cover
Important information
Tax reliefs, thresholds and rules referred to here are set by Revenue and apply to the 2026 tax year. They can change in future Budgets and Finance Acts, and the right cover depends on your own circumstances. The examples are illustrations, not quotes.
David Sheahan Insurance & Investments Ltd t/a BDS Financial is regulated by the Central Bank of Ireland. Reg. no. 115813. Offices in Limerick, Dublin and Galway.
This content is general information and is not financial advice.
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