Media Q&A: Long-term renters exposed


Published  09 May 2022
   2 min read
Consumer Question:

Myself, my husband and our two children rent a three-bed house in Limerick. We’re planning to have enough saved for a mortgage in five years. As long-term renters, we feel financially exposed compared to our home-owning friends who have mortgage protection. Is there an insurance policy that works like mortgage protection, but is for renters?

Answer from Karen Gallagher, Royal London Interim Head of Proposition at Royal London

You’re right, when someone buys a property, they’re generally required by their lender to take out life insurance, called mortgage protection. It works by providing a lump sum payment to clear the outstanding mortgage if the policyholder dies during the policy term (the period during which cover is provided). Those in long-term rental situations, who aren’t required to take out insurance like mortgage protection, can be left financially exposed. However, it’s possible to put a form of ‘Rent Protection’ in place by taking out a Life Cover, Specified Serious Illness and/or Income Protection policy.

Life Cover works similar to Mortgage Protection – providing a lump sum payment if you pass away during the policy term. The key difference is it’s a fixed amount, while mortgage protection reduces in line with a mortgage. A Specified Serious Illness policy provides a lump sum payment if you get seriously ill (terms and conditions apply), which can help maintain rent or other outgoings. Income Protection provides a monthly income during a long period of time if you’re unable to work due to illness or injury.

We recommend long-term renters concerned about their financial resilience consult a Financial Broker. They’re the experts and can provide the best protection to meet your budget and needs.


This question was submitted to and first published by The Irish Independent.

About Royal London Ireland

Royal London Ireland has a history of protecting its policyholders and their families in Ireland, and recently launched a new Pensions business in Ireland. Our business heritage in Ireland is nearly 200 years. The Caledonian Insurance Company's first office outside Edinburgh opened on Dame Street, Dublin 2 in 1824.

Today, Royal London Ireland is owned by The Royal London Mutual Insurance Society Limited – the largest mutual life insurance, pensions, and investment company in the UK, and in the top 25 mutuals globally, with assets under management of €178 billion, 8.6 million policies in force, and 4,100 employees. Figures quoted are as at 30 June 2023.

Royal London Ireland’s office is based at 47-49 St Stephen’s Green, Dublin 2.