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How much Mortgage Protection do I need?

A buyer’s timeline guide

Get Life Insurance Get Mortgage Protection

Mortgage protection is a bank requirement before you can draw down your mortgage in Ireland.

At laya life, we know how stressful buying a home can be which is why we make mortgage protection as simple and fast as possible.

You can get a quote and arrange cover in minutes, with no medicals, no GP reports and no paperwork, helping you move to drawdown faster and closer to your dream home.

Once your policy is in place, we work directly with your bank and take care of everything for you. And as an added bonus, every policy includes a free will, giving you extra peace of mind as you take this life milestone.

This guide will explain how much cover you need, how it’s calculated, and what to consider before choosing your policy so you can tick one more thing off your list with confidence.

The simple rule: Match your mortgage amount 

In most cases, the amount of Mortgage Protection you need should match the amount you are borrowing. 

For example: 

  • A mortgage of €250,000 requires €250,000 of Mortgage Protection 
  • A mortgage of €400,000 requires €400,000 of Mortgage Protection 

This is because Mortgage Protection is designed to do one specific job. If you pass away during the mortgage term, the policy pays off the remaining balance so your loved ones are not left with the debt. 

Most mortgage providers in Ireland require this level of cover before they will release funds. 

Get a quote today

Why Mortgage Protection reduces over time

Mortgage Protection is set up as a decreasing term policy.

This means:

  • Your mortgage balance reduces as you make repayments
  • Your Mortgage Protection cover reduces in line with what you still owe
  • You are only paying for the protection you actually need at each stage

Because the cover reduces over time, Mortgage Protection is often more affordable than other types of life insurance.

Is Mortgage Protection enough on its own? 

Mortgage Protection only covers your mortgage. It does not provide money for: 

  • Household bills 
  • Childcare or education costs 
  • Day to day living expenses 

That is why many homeowners choose to combine: 

  • Mortgage Protection to secure the home 
  • Life Insurance to support their family financially 

Both types of cover work together but do different jobs. 

How is my premium calculated?

While the cover amount is usually fixed by your mortgage, the price you pay depends on factors such as:

  • Your age
  • Whether you smoke
  • Your health and lifestyle
  • The length of your mortgage term
  • Whether you choose single or dual cover

With laya life, Mortgage Protection starts from €9* per month.

The key takeaway 

In most situations: 

  • Your Mortgage Protection should match your mortgage amount 
  • Your cover reduces as your mortgage reduces 
  • It protects your home, not your wider finances 
  • It is required by most lenders in Ireland 

Arranging the right cover early can prevent delays and reduce stress during the final stages of buying your home. 

Get a Mortgage Protection quote with laya life today and keep your home buying journey moving smoothly. 

Get a quote today

*Includes 10% online discount. Based on a €100k policy over 20 years for a 25 year old non-smoker.