Covered.ie - Life Insurance, Mortgage Protection, Income Protection
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Frequently Asked Life Insurance Mortgage Questions Frequently Asked Questions

Insurance FAQs

The basic life insurance product we offer is mortgage protection. With mortgage protection, the sum assured reduces throughout the term of the policy, aiming to cover the outstanding amount of your mortgage. Level Term Life Insurance - The amount of protection with this product stays the same throughout the term of the policy.

Yes, we offer serious illness policies, whole of life policies, as well as life based investment policies. Please contact us if you wish to discuss any of these types of products.

Single cover covers one insured person. Joint cover will pay out benefit on the first death of either insured person.

It usually takes a couple of days for any life company to process your application and issue a policy. In certain circumstances a life company may request a medical report from your doctor, or indeed to attend a medical by one of the life companys' doctors before then issue your policy. In such cases the costs involved in preparing such reports are usually borne by the life company who requested them.

Many things affect the price of life insurance but the main ones are :

  • Type of Cover : Mortgage protection (reducing cove) is usually cheaper than level term insurance.
  • Age : Generally the older the client, the riskies it is for a life company to offer life insurance.
  • Length of Term : generally, the longer the term of cover, the more expensive it will be.
  • Smoker Status : Life comapnies tend to place a higher health risk on smokers over non smokers and charge a higher premium accordingly. In order to be considered a non smoker, a person must not have smoked for at least 12 months.
  • General Health : Certain health conditions, where known by the client at the time of applying for cover will result in a 'loading' of the premium to reflect the higher health risks associated with such a health or medical condition.

Mortgage FAQs

We get paid a commission by the lenderwho lends you your mortgage. Our expertise costs you nothing!

You need to supply us with :

  • recent payslips
  • Last P60
  • 3 months back statement
  • Loan statements (if any)
  • Photo ID
  • Utility Bill
  • Salary cert (we supply blank ones)

Lenders base your maximum borrowing amount on your disposable income. Most lenders will allow you to have a mortgage with the repayment of 30-40% of your disposable income. However, higher income earners may be able to go to 45%.

Variable:
A variable rate mortgage is one that can go up or down during the term of the mortgage at the discretion of the lender.
Tracker : A tracker mortgage is a variable rate mortgage which tracks the European Central Bank base rate (ECB rate). It is made up of two parts a) the ECB rate and b) the bank margin. The bank margin element of the rate remains fixed while the ECB rate goes up or down. The tracker rate available to you usually depends on a) the value of the loan versers the value of the property - the Loan to Value (LTV) b) the total amount of the loan.
Fixed : With a fixed rate mortgage the interest rate and therefore you loan replayments are fixed for a certain amount of time. Fixed mortgages are usually available for periods of 1 to 10 years. Fixed mortgages revert to variable rates at the end of the fixed period.

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