Life insurance cover provides you with the peace of mind of knowing your family will be taken care of in the event of your untimely death. It is a cost effective and inexpensive way of making sure your dependents will receive a lump sum should you die during the term of your policy.
In addition to taking care of your dependents with a lump sum, life insurance policies can be used to:
- pay off your mortgage (mortgage protection policies)
- help protect your business (keyperson insurance)
- protect loved ones from a large inheritance tax bill when you die (Section 72 policies)
Life Assurance Policies can be taken out on a single life, dual life or joint life basis.
- A Single Life policy is for an individual, and pays out a lump sum in the event of their death, during the term of the policy.
- A Dual Life is a policy on two lives, such as a husband and wife, and pays a lump sum in the event of each death during the term of the policy.
- A Joint Life policy is on two lives, and pays out a lump sum in the event of either parties death during the term of the policy. This is commonly used for mortgage protection policies.
Types of Life Insurance
Term Assurance Life cover
Term Assurance is life insurance over an agreed term which pays a cash lump sum if you die during the term of your plan. It is particularly important to have for the key years if you have a dependent family who rely on your income.
The cost of life insurance depends on your age, health, whether you smoke, amount of cover and product type.
Did you know?
For as little as €15 per month you could have life cover of €200,000 for term of 20 years. (Quote from Irish Life June 2017, for a 30 year old non-smoker with no health issues and includes the Government Levy)
Mortgage Protection Life cover
Mortgage Protection provides a lump sum payment if you die during the term of your mortgage contract.
If you are taking out a new mortgage or re-mortgaging your home, this type of cover is essential to secure your mortgage with your mortgage provider. Unlike most types of life insurance, the benefit decreases over the term of the policy, in line with the decreasing capital owed on your mortgage.
When taking out Mortgage Protection you can often add on Specified Serious Illness cover which will provide a cash lump sum to help you continue to pay off your mortgage and other bills should you be diagnosed with one of the specified illness covered by the plan.
Life Long / Whole of Life Assurance
Life Long / Whole of Life Assurance provides the level of life insurance you choose for the whole of your life, as long as you continue making your regular payments. It can also provide tax efficient inheritance planning cover for your family so as not to impact their inheritance.
Optional Additional Life Cover Benefits:
The following additional benefits may be included with your life cover policy:
- Personal accident benefit
This benefit covers you if you unable to continue at work because you have become temporarily disabled due to an accident. The benefit begins 14 days after the accident and the amount paid for each week you are unable to work in your current occupation is either half your weekly earnings or the amount of benefit you decide to set up (whichever is the lower amount). The benefit can be made for a maximum of 52 weeks but stops on your recovery, 60th birthday or death, whichever is earliest.
- Hospital cash benefit
Hospital Cash benefit helps you cope with the effects of a hospital stay on your income. If you are admitted to an Irish hospital as an in-patient for more than three days (72 hours), the policy will pay the amount of Hospital Cash Benefit you have chosen multiplied by the number of days (24 hours) you are in hospital up to one year (365 days).