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Whether you’re buying your first home or already own a second property, life insurance is key to protecting your family’s future and ensuring they can stay in the home you’ve worked hard for—no matter what life brings.
Having the right life cover in place can mean the difference between your loved ones staying in the family home or facing financial stress.
In this blog, we’ll explore why life insurance is so important for homeowners, the different types of cover available, how it compares to mortgage protection, and how to choose a policy that suits both your mortgage and your family’s needs.
Why Life Insurance Matters When You Buy a Home
Did you know the average mortgage drawdown in Ireland hit a record high of €327,972 in early 2025? That’s a substantial financial commitment.
If something happened to you tomorrow, would your partner, family, or co-owner be able to make the repayments? For most people, the answer is no.
That’s why life insurance is so important when you buy a home. It acts as a financial safety net, helping to clear the mortgage so your loved ones can stay in the home you worked so hard to buy. Without it, they could be left struggling with a debt they can’t afford.
Reasons Why You Should Care About Life Insurance as a Homeowner
Protects Your Family from Mortgage Debt
If you pass away, life insurance can help pay off your mortgage, so your family isn’t left struggling to make repayments or forced to sell the home.
Keeps Your Home in the Family
Life insurance ensures your loved ones can stay in the home you worked so hard to buy, instead of downsizing or renting elsewhere.
Covers Other Household Expenses
The mortgage isn’t the only expense—life insurance can also help cover things like utilities, property tax, and home maintenance, so your family isn’t left financially overwhelmed.
Peace of Mind During the Mortgage Term
Even if you’re healthy now, things can change. Having a policy in place gives you confidence that your home is protected no matter what happens.
Required by Your Lender
Banks require mortgage protection (a type of life insurance) to approve your home loan.
Helps Maintain Your Family’s Lifestyle
The payout can provide income support so your partner or children don’t have to change schools, move location, or give up other essentials.
Affordable and Customisable
Life insurance can be surprisingly cheap—often costing less than a takeaway per month—and you can tailor it to suit your mortgage and needs.
Can Include Serious Illness Cover
You can add a cover that pays out if you’re diagnosed with certain serious illnesses, protecting your home even if you’re unable to work.
It’s Part of a Smart Financial Plan
Your home is one of your most significant investments—life insurance helps protect that investment, just like home insurance does for the building itself.
Don’t wait any longer, get a quote today!
The Role of Protection in Financial Planning
Incorporating protection into your financial plan is essential for homeowners in Ireland. Financial protection, such as life insurance, income protection, and serious illness cover, acts as a safety net, ensuring that your financial goals remain achievable even when unexpected events occur.
It’s not just about accumulating wealth; it’s about safeguarding it. For homeowners, this means that in the event of unforeseen circumstances, your family can maintain their standard of living and stay in their home without financial strain.
By integrating protection into your financial planning, you’re not only securing your assets but also giving yourself and your loved ones peace of mind.
Download our Comprehensive Protection Package Pocket Guide and read it today for detailed insights on safeguarding your family’s financial future.
Have a Protection Package in place and boost your Financial Plan in every stage of your life!
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Mortgage Protection vs. Life Insurance: What’s the Difference?
Great question. Here’s a simple breakdown:
- Mortgage Protection Insurance: It decreases over time as your mortgage balance decreases. It’s tied to your home loan and is meant to clear it if you die during the term.
- Life Insurance (or Term Life Insurance): Pays out a fixed lump sum, no matter what it’s used for. Your family could use it to pay the mortgage and other expenses like childcare, groceries, or bills.
Learn more by reading our blog on the differences between Life Insurance and Mortgage Protection.
Do You Need Both Life Insurance and Mortgage Protection?
Having both insurances can offer more comprehensive protection, especially if you have a young family.
Mortgage protection is designed solely to pay off your mortgage if you pass away, but it doesn’t leave anything extra behind. Life insurance, on the other hand, can provide a lump sum that your loved ones can use for day-to-day living costs, childcare, education, and more.
So, even if you already have mortgage protection in place, it’s highly recommended to consider life insurance too, particularly if you have children who depend on you financially.
Life Insurance Myths vs. Reality
Several myths about life insurance can deter people from getting the cover they need.
One common belief is that life insurance is too expensive. However, this is not always the case; for example, premiums can be as low as €13.72 per month.
To help you determine whether life insurance suits your needs, we’ve debunked five typical myths and misconceptions surrounding it.
Understanding the realities can clarify the benefits and affordability of life insurance, encouraging more informed decisions about securing your family’s financial protection.
Which Type Of Life Insurance Is Best For homeowners?
As a homeowner, protecting your property and your family’s future means choosing the right life cover. You can opt for a standalone life insurance policy, which pays out a lump sum if you or your partner passes away, giving your loved ones the financial support they need to keep up with mortgage payments and other living costs.
For even more protection, you might consider combining different types of cover. For example, you can add Serious Illness Cover to your policy, which pays out if you’re diagnosed with a covered critical illness like cancer or a heart condition.
Or look into Income Protection Insurance, which replaces a portion of your income if you’re unable to work due to illness or injury.
Term Life Insurance
Term life insurance provides a lump sum payment to you and your family in the event of death. This type of life insurance applies to a specific fixed term; the policy will cease after the term has ended, and no claim is made.
Whole of Life Insurance
Whole of Life Insurance will insure you for your entire life, continuing up until the event of your death. In most cases, this type of life insurance will cost considerably more than other products, as there is a guaranteed payout.
Convertible Life Insurance
Convertible Term insurance is similar to Term insurance but has a different advantage.
The policyholder can convert the existing cover into a new, longer-term policy without requiring the insured person to provide further medical information at the time of conversion.
Read more about Convertible Life Insurance.
You can also change the policy to a “Whole of Life” policy, which guarantees you life insurance for the rest of your life.
Mortgage Protection
If you pass away before paying off your mortgage in full, Mortgage Protection insurance will cover the remaining balance.
Read more in our post about the most frequently asked questions about mortgage protection and the myths surrounding it.
Not sure where to start? A quick quote is all it takes.
Life Insurance – Types of Cover For Families
Single
Getting a quote by yourself and taking out a single policy.
Joint
This policy covers you and your partner and will pay out once. This policy can be set up on a Joint Life First Death basis, i.e., the policy will pay out on the death of the first life assured and then cease.
Or on a Joint Life Second Death basis, i.e., there will be no payment on the death of the first life assured; however, the policy will pay out on the death of the second life assured and then the policy will cease.
Dual
Dual cover will pay out on the death of both the first and second lives assured. On the death of the first life assured, the benefits will be paid to the remaining life assured.
The benefits will be paid to their estate upon the death of the second life assured. Once the policy has paid out on both the first and second lives assured, it will cease.
Learn more by reading our article: Joint vs. Dual Life Insurance: Which Is Better for You?
Is It Possible To Adjust Our Life Insurance Cover Over Time?
Many life insurance policies offer flexibility, also known as Guaranteed Insurability. Policies with a guaranteed insurability option allow you to increase your cover when significant life events occur, such as the birth/adoption of a child or the purchase of a home, without providing additional medical evidence.
Additionally, you can add Indexation to your life insurance policy, which ensures your cover increases over time to compensate for inflation.
This feature helps maintain the value of your policy, providing adequate protection for your loved ones as the cost of living rises. By adjusting your cover to keep pace with inflation, you can ensure that your beneficiaries receive sufficient financial support when needed without the risk of your policy’s value diminishing over time.
By reading our article, you can learn more about how inflation can impact your life insurance payout.
How Much Cover Do You Need—and What Will It Cost?
If you’re taking out a mortgage, your life insurance or mortgage protection needs to cover the full amount and term of your loan. That way, if something happens to you during that time, the mortgage can be cleared and your loved ones won’t be left with the debt.
Wondering how much it’ll cost? You can get a quote directly through our system, which compares Ireland’s top life insurance providers in one place. No need to bounce between websites—we shop around for you, saving you time and hassle.
And if you’re thinking about where to buy your policy, here’s something worth knowing: buying life insurance through a broker can often mean better value. Brokers offer personalised advice, access to a wider range of policies, and often better prices than going directly.
To understand the advantages in more detail, read our article on why buying life insurance from a broker could be more beneficial for you.
Is There Any Life Insurance Benefit I Can Enjoy While I’m Alive?
Life insurance isn’t just about providing financial security after you’re gone; it also offers benefits you can use while you’re alive.
For instance, Hospital Cash Benefit provides a daily cash payout for each day you spend in the hospital. This benefit helps cover out-of-pocket expenses, including meals, transportation, and parking fees, which your private health insurance might not cover.
These additional funds can help ease the financial burden during hospital stays, allowing you to focus on recovery without worrying about unexpected costs.
Read our article to learn more about the various living benefits of life insurance and how they can support you and your family in times of need.
Let’s make sure your loved ones are protected – get your free quote today!
Can You Switch or Review Your Life Insurance Policy?
Absolutely. Just because you took out a life insurance or mortgage protection policy when you bought your home doesn’t mean you’re locked into it forever. In fact, many people don’t realise they can switch, just like you can switch your mortgage for a better deal.
A common misconception is that you have to stick with the same bank for both your mortgage and your protection policy, but that’s not true. You’re free to move your policy to another provider, and in many cases, it could be much cheaper.
If it’s been a few years since you took out your cover, now’s a great time to request a quote. You might be paying more than you need to—and switching could save you hundreds or even thousands of euros over the life of your policy.
And if you’re wondering whether you’re covered enough, it’s worth reading the signs that your life insurance might be too low.
Even better, in some cases, you may be able to increase your cover without needing to answer new health questions. Handy if your circumstances change but you want to avoid fresh medical underwriting.
Can I include Serious Illness Cover In My Life Insurance Policy?
Yes, you can add Serious Illness Cover to your Life Insurance or Mortgage Protection policy, which pays out a lump sum if you are diagnosed with a specified serious illness.
If you are adding Serious Illness Cover to your Mortgage Protection or Life Insurance, when the payment is made, the life cover amount is reduced accordingly. It is also called an accelerated serious illness cover.
Alternatively, you can buy Serious Illness Cover as a separate policy. It’s called Standalone Serious Illness Cover, and it means it is taken out as a separate policy and it is completely independent of any life protection you might purchase or already have. It is also sometimes called additional cover, separate cover, or double cover.
To understand better, read our detailed article about Serious Illness Cover, where we explain everything in depth.
Other Important Insurances For Homeowners
Serious Illness Cover: This policy offers protection by providing a lump sum if you are diagnosed with a specified serious illness. Learn more by exploring our Serious Illness Cover Guide.
Income Protection Insurance: Provides a regular income if you cannot work due to illness or injury. Learn more by reading our Income Protection Guide.
Health Insurance: This insurance provides cover for medical expenses, reducing the financial burden of healthcare costs for you and your children. Learn why health insurance is a must-have in Ireland.
Section 72 Insurance: It is important for homeowners because it’s designed to cover inheritance tax, so your loved ones won’t have to sell the family home or other assets just to pay a tax bill after you’re gone.
Section 73 Insurance: This insurance can be a smart move for homeowners who want to gift money or assets to their children in the future without incurring a hefty tax bill.
Pension Plans
Contributions to a Pension: Besides providing for retirement, pensions can sometimes offer a death-in-service benefit, which provides a payout to dependents if you die while employed.
Read our Retirement Guide to learn everything about pensions and retirement planning.
Don’t Let Taxes Take Your Home
When it comes to estate planning, many people don’t realise that a life insurance payout might be subject to tax, especially if you’re not married. For example, if you’re a cohabiting couple and not legally married or in a civil partnership, your partner could face a significant inheritance tax bill on your share of the home. In some cases, this could even force them to sell the property just to cover the tax.
If you have children, chances are you’ve thought about what would happen to them if you were no longer around. That’s why it’s so important to protect your children from potential inheritance tax on any property or assets you plan to leave behind. In some cases, the tax bill can be substantial, eating into the value of what you’ve worked so hard to build. One way to ease this burden is by planning ahead.
Transferring certain assets during your lifetime, where appropriate, can be a smart strategy to reduce or avoid tax liabilities later on. With the right advice, you can ensure your children are financially protected and receive the full benefit of what you’ve left for them.
That’s why proper estate planning is so important. There are solutions available, like a Section 72 life insurance policy, which is designed to help cover inheritance tax so your beneficiaries don’t have to pay it out of their own pocket. Whether it’s your home or other assets, the tax liability depends on your relationship and individual circumstances.
It’s always best to speak with a financial advisor who can guide you through the options and make sure your loved ones are protected.
Let’s make sure your loved ones are protected – get your free quote today!
Get a Life Insurance Quote For Homeowners
Life insurance might not be the most exciting part of buying a home—but it’s one of the most important. It protects the people you care about from the worst-case scenario and helps make sure your home stays in the family, no matter what happens.
If you’re not sure where to start, talk to one of our financial advisors who can walk you through your options. And if you already have a policy, it’s worth checking if you’re still getting the best deal.
We also provide a wide variety of financial services, such as mortgages, serious illness cover, pensions, financial planning, health insurance, and savings & investments.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
