7 Reasons To Buy Mortgage Protection From a Broker

7 Reasons To Buy Mortgage Protection From a Broker

You need mortgage protection insurance to get a mortgage in Ireland. That's the law. No insurance, no mortgage.

Most people assume they have to buy it from whoever's giving them the mortgage. AIB gives you the mortgage, so you buy AIB's insurance. Bank of Ireland gives you the mortgage, so you buy theirs.

Wrong.

You can buy mortgage protection from any authorised broker in Ireland. And you should. Here's why.

1. Banks Only Show You One Price - Brokers Show You All of Them

Your bank has one insurer. That's your only option.

AIB sells AIB Life. Bank of Ireland sells New Ireland. Permanent TSB sells Irish Life. One product, one price, take it or leave it.

A broker shows you quotes from Royal London, Irish Life, Zurich, Aviva, and New Ireland. All the major players. All competing for your business.

Same cover, different prices. Sometimes massively different prices.

€30 per month versus €50 per month doesn't sound like much. Over 25 years, that's €6,000. Would you turn down €6,000?

2. Bank Staff Aren't Insurance Experts - Brokers Are

The person selling you mortgage protection in the bank is a mortgage advisor. Their job is to get your mortgage approved and moved along.

Insurance is a tick-box exercise for them. Get it done, move on to the next application.

A protection insurance broker does this all day, every day. They know which insurer handles smokers better. Which one offers the best value for couples. Which one has the smoothest claims process.

They'll spend time understanding your situation - health, age, lifestyle, budget - and match you with the right insurer and the right level of cover.

That's the difference between someone who processes insurance and someone who specialises in it.

3. Cashback Puts Money Back in Your Pocket

Brokers offer cashback. Banks don't.

It's usually a percentage of your first year's premium paid back to you after 12-18 months. Depending on your premium, that could be €150, €200, €300 or more.

You're getting the insurance anyway. You legally have to. Why not get some money back while you're at it?

Banks already have you as a mortgage customer. They're not competing for your business. Brokers are.

4. Your Insurance Stays Separate From Your Mortgage

Buy insurance from your bank and it's tied to your mortgage. That seems convenient until you want to switch your mortgage to another lender.

And you should be switching. Irish mortgage holders can save thousands by switching to better rates every few years. But if your insurance is bundled with your mortgage, it creates unnecessary complications.

A broker gives you insurance that stands alone. You can switch your mortgage wherever you want, whenever you want. Your insurance stays put. No hassle.

Plus, when you need help with your policy in three years, you're dealing with someone who only does insurance. Not someone juggling hundreds of mortgage applications.

5. Not All Insurers Treat Medical Conditions the Same Way

Here's what most people don't know: insurers underwrite differently.

You have high blood pressure. Insurer A adds €15 to your monthly premium. Insurer B adds €5. Same condition, same level of cover, wildly different loadings.

Banks send your application to their insurer and hope for the best. If you get loaded, you get loaded. That's your price.

Brokers know which insurers are lenient on which conditions. They know where to place your application to get you the best outcome. That knowledge saves you money every single month for the next 25 years.

6. You Don't Slow Down Your Mortgage Application

Getting a mortgage is stressful enough. You're gathering payslips, bank statements, proof of deposit. You're waiting on solicitors and valuations.

The last thing you need is insurance complications holding up your approval.

Arrange your mortgage protection through a broker separately. Your mortgage application moves forward cleanly. Your insurance gets sorted in parallel. When you're ready to draw down, everything's in place.

No delays. No added stress. No bank mortgage advisor chasing you for medical forms when you're trying to close a house purchase.

7. Brokers Look at Your Complete Protection Needs

Mortgage protection covers one thing: you dying while you have a mortgage.

That's important. But it's not the only risk you face.

What if you're diagnosed with cancer and can't work for a year? Mortgage protection doesn't pay out. What if you break your leg and you're off work for six months? Mortgage protection doesn't help.

A proper broker reviews your full protection picture. They look at serious illness cover. They look at income protection. They show you how to bundle these covers in a way that actually makes sense for your budget.

Banks don't have this conversation. They're just trying to meet the legal requirement for your mortgage. A broker is trying to make sure you're actually protected if something goes wrong.

The Reality

You're about to take on the biggest debt of your life. €300,000, €400,000, maybe more. For 25 or 30 years.

The insurance protecting that debt matters. It's not something you should just accept from whoever happens to be giving you the mortgage.

Talk to a broker. Get quotes. Compare. See the difference.

It takes 10 minutes. You provide some basic details. They do the work. You save money and get better cover.

There's no logical reason to buy from your bank when a broker can get you the same cover cheaper with better service.

Smart buyers know this. Now you do too.

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