Posts Tagged ‘Mortgage Protection Ireland’

Mortgage Life Assurance Deduction for Tax Purposes

Friday, August 13th, 2010

A tax relief that is often overlooked is Mortgage Life Assurance (also known as Mortgage Protection) on investment property loans.  In the past due to higher interest rates it was unlikely that investors in residential property had any significant taxable rental profits (due to high interest rates).  However the fact that individuals can only obtain relief on 75% of interest paid and the presence of low interest rates have meant even in these times of a very weak property market that property investors may for the first time in years have taxable rental profits.

According to Revenue “In strictness mortgage protection policy premiums are arguably not part of the cost of management of the premises but relate more to the management of the landlord’s financial affairs than to the management of the premises. Such expenditure could also be argued to be capital in nature. However, Revenue recognize that financial institutions insist that such policies are put in place when sanctioning borrowings. Accordingly Revenue, having reviewed the position, is prepared to treat mortgage protection policy premiums paid as an allowable deduction in computing rental income for income and corporation tax purposes”

See here.

The Economiser

Thursday, April 15th, 2010

The National Consumer Agency have launched an excellent tool to help individuals save on their day to day outgoings. It’s well worth a look and can be done in less than 10 mins.

The website also allows you to sign up for a regular newsletter which outlines money saving tips. SmartQuotes.ie regularly promotes value for money products on our blog. If you have something you wish us to promote please contact us.

SmartQuotes.ie are Ireland’s leading low cost Financial Services and Insurance website.  We provide low cost pensions, cheap life assurance, cheap mortgage protection, cheap income protection and cheap critical illness cover.  Our technology allows users to obtain quick quotes online in just a few simple steps. Go to www.smartquotes.ie for further details

For Protection products SmartQuotes.ie compare all the market providers to offer you  the lowest quote available.  In addition we offer a discount on the first year’s premium. We are currently offering up to a 70% discount on the first year’s premium on certain products. Unlike other providers we allow individuals on monthly payment plans to benefit from a discount in their first years premium. Go to http://www.smartquotes.ie/life-assurance/ for further details on how to avail of this offer or call us on (01) 685 3813.


Life Assurance Terms Explained

Wednesday, January 13th, 2010

We are often asked to explain the jargon associated with life assurance.

There are two main types of mainstream life cover:

Mortgage Protection (also known as mortgage life cover)

Life Assurance (also known as term assurance)

The difference between a mortgage protection policy and life assurance is that a life assurance policy pays out an agreed lump sum to a surviving spouse or family on the death of the policyholder. A mortgage protection policy pays off the remaining balance on a mortgage loan to the bank if the policyholder dies before the mortgage is paid off.

It is important to realise that with life assurance the sum assured does not decrease, whereas with mortgage protection the sum assured decreases because the sum assured is equal to the balance on the mortgage loan account.

Most people who have a mortgage will have mortgage protection.

Mortgage Protection should not be confused with mortgage repayment protection which pays your mortgage for 12 months if you lose your job etc.

For life assurance there are two main types of cover dual cover and joint cover.  Dual Life Cover is a life insurance policy that provides cover for two people and continues after the first person dies. It pays out benefits on each death.  It could potentially pay out twice during the course of the policy. Joint cover will pay benefits on the first death of either insured person.  As a result joint life cover is usually cheaper.  All mortgage protection cover by nature is joint cover

There are also other options when taking out a life assurance policy:

-         Convertible option

-         Indexation

Convertible option – At the end of the term you have chosen you have the option to continue your life cover without the need for further medical information.

Indexation – This option allows you to increase your life cover in line with inflation. The indexation rates vary between providers and clients should always ask what indexation rate applies to their premium and their benefits.

SmartQuotes.ie compares the market to find the cheapest life assurance/ mortgage protection quote for you.

www.smartquotes.ie

For further jargon translations a useful website is http://www.itsyourmoney.ie/jargonbuster

All text/figures are correct at the time of publishing.  Figures are for illustrative purposes only.  If Financial Advice is required you should contact SmartQuotes (trading name of PFP Financial Services Limited).