Life Assurance Made Simple – Life Insurance Ireland
What Does Life Assurance Do?
Life insurance guarantees that in the event of your death, a lump sum will be payable to your loved ones.
Not sure if you need Life Assurance?
Ask yourself this question: “Will someone in my life suffer financially if I die?”
If the answer is yes, you probably need life insurance.
The correct amount of life assurance can:
Provide money to pay for burial or other final expenses
Ensure your loved ones are able to sustain their current lifestyle and stay in their home
Cover your debts, including your mortgage
Provide an income for your family
Cover the cost of childcare
Cover the cost of education for your children
Can reduce inheritance tax liability
What Are The Different Types Of Life Assurance?
There are many different life insurance products and finding the right product for you depends on your personal and family circumstances, including your debts, the age of your children and your long-term goals for your family. Most life insurance products fit into two categories – term life and whole of life.
Term Life Assurance
Term life assurance is generally arranged for a set amount of cover for a pre-determined number of years. It can be used to give cover for a loan such as a mortgage which will be paid off over an agreed period. It can also provide income to provide for your children until they reach independence.
Term life assurance only pays a benefit if you die during the specified period of time – After the term expires there’s no guarantee that you will qualify for a new policy – If you do qualify, the premium will probably be higher because of your older age, or it might cost extra if you have had any medical issues in the meantime. It is possible to guarantee the extension of your cover without any medical underwriting by paying a small extra premium. Life Insurance Ireland
Whole of Life Assurance
Whole of life assurance guarantees you cover up to age 99, provided you continue to pay the premiums, which are reviewed on a regular basis. This was a popular product in the 90’s and was sold on the basis that part of the premium was invested which would keep future premiums down.
They did not live up to their promise and in most cases, the investment returns were poor, resulting in the premiums being revised upwards, making it a very expensive form of life assurance.
Pension Term Life Assurance
Pension Term Life Assurance provides your family with a lump sum payment, if you should die before you retire. Under current legislation, tax relief is available at the rate of income tax you pay.
The cover lasts until you reach retirement age, which will normally be your 65th birthday, subject to revenue limits and conditions.
How Do I Buy Life Assurance?
Engage a Financial Broker who will guide you through the process.
A reputable Financial Broker will discuss your circumstances with you and advise you as to how much cover you should have. This will depend on your individual needs and also your available budget. The Financial Broker will then search for the best value cover for you and make his/her recommendations.
An application form will be completed and sent to the life assurance company, who will underwrite the application. Based on medical evidence or the amount of cover required, you might have to attend for a medical.