Mortgage protection insurance in Ireland

What the law says

Section 126 says a mortgage lender "shall arrange" a life assurance policy for a housing loan. If a borrower dies, it pays the principal the lender estimates is still owed that year, and that money goes to repay the loan. We checked the text on the Irish Statute Book on 9 November 2026. The revised version of the Act shows no change to the section.

The duty does not apply in four cases set out in section 126(2):

• Not your main home. The lender's view is that the house is not meant to be the main residence of the borrower or their dependants. For example, a house you plan to let.
• Hard to insure. The borrower belongs to a group insurers would refuse, or would only cover at a premium "significantly higher" than borrowers pay generally. Citizens Information gives a current serious illness or a dangerous job as examples.
• Over 50. The borrower is over 50 when the loan is approved.
• Cover already in place. The borrower has already arranged life cover that would pay at least the amount owed.

Even when the law does not require it, some lenders still ask for mortgage protection as a condition of the loan, Citizens Information says. Without a policy, the joint owner or your beneficiaries keep paying the mortgage after your death.

The Act also says most borrowers cannot be made to have a medical exam for this policy. On a joint loan, the lender decides which borrowers the policy covers, "due regard being had" to their wishes. If the payout is more than the loan, the extra goes to the surviving borrower or the estate.

If a lender refuses you a mortgage because you cannot get cover due to age or health, the CCPC says you can raise it with the Central Bank or complain to the Financial Services and Pensions Ombudsman.

Cancer survivors: the law changed on 15 October 2026

The Insurance (Disregard of Certain Medical History and Miscellaneous Provisions) Act 2026 came into effect on 15 October 2026, the Department of Finance says. Insurers must now ignore your cancer history when you apply for mortgage protection if all of these apply:

• You finished active cancer treatment at least five years ago.
• You have been in complete remission for at least five years.
• The policy is for a mortgage on your principal private residence.
• You want cover of up to €650,000. Above that, normal underwriting applies.

This replaced Insurance Ireland's voluntary code from December 2023. That code used seven years after treatment (five if you were diagnosed under 18) and a limit of €500,000. The CCPC and Citizens Information pages we read on 9 November 2026 still describe the old code, so ask the insurer which rules it is applying.

How it differs from life cover

The CCPC describes mortgage protection as a special type of term life insurance linked to your mortgage. The two do different jobs:

You can use an existing life policy instead, the CCPC and Citizens Information say, if it gives enough cover and is not already assigned to another loan. Any money left after the mortgage is cleared goes to your estate.

Mortgage protection does not pay your repayments if you are sick, disabled or made redundant, the CCPC says. That is a job for income protection insurance. Mortgage repayment protection is another product again: Citizens Information says it is usually optional and typically covers payments for 12 months.

Decreasing cover and the other types

• Reducing (decreasing) term cover. The amount insured falls as you pay off the loan and the policy ends when the mortgage does. Your premium does not change. Citizens Information says it is the most common form and costs less than the other types. Revenue's tax manual also calls it decreasing term insurance.
• Level term cover. The amount insured stays the same. If you die during the term, the insurer pays the original amount, the mortgage is cleared and the rest goes to your estate.
• Serious illness cover. An add-on that clears the mortgage if you are diagnosed with an illness the policy covers. Citizens Information says this costs more. See our guide to serious illness cover.

For couples, Citizens Information says mortgage protection should be on a joint life, first death basis, so the loan is repaid when the first person dies.

You do not have to buy the lender's policy

Lenders cannot require you to buy mortgage protection from them, the CCPC says, as long as your policy meets their requirements. Citizens Information adds that a lender cannot refuse you a mortgage because you turned down its policy.

Small gaps in price add up. The CCPC says a €5 a month difference could save you over €2,000 across a 35-year mortgage.

A lender's group scheme works differently from a policy you buy yourself. The CCPC says the lender owns the policy, it usually covers only the mortgage, and you cannot take it with you to another lender.

What happens when you switch or borrow more

Under the Central Bank's Consumer Protection Code, a lender's guide to switching must tell you to consider whether, and how, your existing insurance can be kept (Regulation 169). These are the CCPC's points for each change:

• Switching lender. If the amount and term stay the same, you can assign your own policy to the new lender. A group scheme policy is cancelled when you switch. Get new cover in place first: it may cost more, or be unavailable, if your health has changed.
• Replacing a policy. Agree the new policy with your lender, make sure it is legally assigned to the lender, and cancel the old one in writing only after the new one starts.
• Topping up. Check the policy covers the new total. You can buy one policy for the whole amount or a second one for the extra borrowing. Age affects price, so a new policy may cost more.
• Paying off early. You can cancel, or keep paying to the original end date. A group policy may be closed by the lender once the loan is cleared.

Extending your mortgage term may mean you need more cover, Citizens Information says. Keep payments up to date: if you go into arrears, the policy may lapse. If you agree an alternative repayment arrangement, the lender must warn you it may affect your mortgage protection cover (Regulation 254).

When you may not need it

• Over 50, or not your home. The legal duty does not apply. Check the lender's own conditions, because some still ask for cover.
• Existing life cover. A term life policy that is big enough, long enough and not assigned elsewhere can be used instead. Ask the lender to confirm it accepts the policy before you rely on it.
• Rental property. Revenue allows mortgage protection premiums as a deduction from rental income, says its Tax and Duty Manual Part 04-08-09 (reviewed April 2025). It does not allow mortgage payment protection premiums.

To see what moves the premium, read our guide to the cost of life insurance. Our life insurance guide has the overview, and Vhi's details are on our Vhi provider page.

Sources

• Irish Statute Book: Consumer Credit Act 1995, section 126 (accessed 9 November 2026)
• CCPC: Mortgage protection insurance (accessed 9 November 2026)
• CCPC: Life insurance (accessed 9 November 2026)
• Citizens Information: Insurance protection on mortgages (accessed 9 November 2026)
• Citizens Information: Switching your mortgage (accessed 9 November 2026)
• gov.ie: "Right to Be Forgotten" for cancer survivors comes into effect today, 15 October 2026 (accessed 9 November 2026)
• Central Bank of Ireland: Consumer Protection Code, Part 3 (Regulations 169 and 254) (accessed 9 November 2026)
• Revenue: Tax and Duty Manual Part 04-08-09, Mortgage Protection Policy Premiums (accessed 9 November 2026)
• Vhi: published mortgage protection price (checked 9 November 2026)