By Dave Kavanagh

There are two important aspects of both having and needing mortgage protection life cover. Firstly, there are those who have had mortgages for a number of years with mortgage protection life cover done in conjunction with it. For these people, it is well worth checking the current level of cover and remaining term on their mortgage protection and the same on their mortgage balance and term, to make sure there is sufficient cover. For example, in 2020 during the severe Covid lockdowns, many mortgage holders availed of a 6 month payment break. During this period, their mortgage protection cover will have continued to reduce, while their mortgage balances may have stayed level, or even increased if interest was capitalised. This could mean a shortfall in the event of a claim, meaning that the mortgage does not get fully cleared and there is a balance owing.

The second aspect to consider, is people who are planning to get a mortgage soon, or in the near future. They have saved regularly to build a deposit, maintained stable employment, avoided taking out new loans (and made sure any existing or previous loan obligations were paid in full and on time), conducted their current accounts efficiently, etc. but sadly, they don’t get to proceed with their house/apartment purchase (certainly not in the time frame they wanted to) because they cannot get their mortgage protection life cover accepted. This could be due to their current or past medical history, or something simple like they have been referred for a test that has not yet been done. It’s why many are arranging their mortgage protection cover well in advance of drawing down their mortgage. Once in place, any new medical issues are not relevant. It can even save them money, as 36 years paying a cheaper premium (before another birthday has passed) is cheaper than 35 years at the higher premium.

Dave Kavanagh QFA has been advising people financially for over 25 years. For quotes or information (with no cost or obligation) he can be contacted by emailing info@financialcompanion.ie or use the contact form on www.financialcompanion.ie or @Davekav_advice on Twitter and Instagram. Combined with his previous role of gym/nutrition adviser, he regularly gives talks and workshops at seminars and events for groups, companies and government departments on financial wellbeing, positivity and motivation. As heard on RTE 2FM , LMFM and TV3.