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Purchasing your first property is both a rewarding and stressful life event. After working hard and saving for a number of years and then having to face the pushy seller or ruthless real estate agent, you have finally bought a suitable property that will see you grow and raise your family. Yet, have you ever wondered what would happen to your home should the unexpected strike and you are no longer here to provide for your family? Would your loved ones be able to make loan repayments in your absence? A home loan protection plan can help you safeguard your efforts, but more importantly, your family’s financial integrity.
Here we give you the ins and outs of why having a home loan insurance is imperative.
For most people, purchasing a home is surely one of the biggest financial commitments to make. Once you begin repaying your mortgage, you owe your bank anything up to approximately 90% of your home’s purchase price which in all likelihood amounts to tens or even hundreds of thousands of euros. Each month you pay off a little of your loan until at the end of its term you would have repaid your lender the entire amount and you will be the rightful owner of the property. The process of repayment, however, can take decades and although this is something you would have planned for the foreseeable future, your circumstances can change, placing your family at risk of losing the roof over their heads.
An insurance policy that pays off the remainder of your loan in the event of your death before the loan ends is a great way of financially protecting your investment and loved ones should the worst happen. This, however, differs from a home insurance which covers the building itself against damage from things like fire, other accidents and at times, natural disasters, while it varies to other life insurances that may cover your bills and debts if you lose your job or succumb to some form of an illness or disability.
Apart from the obvious advantage of offering you peace of mind knowing that your loan will be paid off in full, here are some additional benefits:
Protecting your family from potential financial hardship by purchasing insurance is a big and important financial step that should not be taken lightly. A loan protection is typically offered during the loan-buying process and will usually be enough to cover your home loan in its entirety. Although locally this is purchased via the bank that is providing you with the home loan, you do not necessarily need to do so. As with many products and services, it is wise to shop around to find the insurance product that will give you the best cover at the right price. CC’s Loan Protection Plan will help to repay any outstanding home loan on your death, enabling your loved ones to carry on living in your home.
Have a look at our full range of life insurance protection plans that will cover your other needs.
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