Life Insurance

Life Insurance

This type of cover is currently the most popular form of life insurance available on the Irish market, it provides low cost life and / or serious illness cover for a fixed premium over your specified number of years. The cost of the cover and the sum assured remain fixed for the entire term of the policy. In the event of a claim the sum insured is paid to your estate, but if there is no claim the policy simply expires.

There are 2 main types of term insurance:

  • Level Term

This is where you elect the level of cover needed and the required term , from outset the premium and the level of cover will remain level throughout the set term and the cover will expire at the end of the term.

  • Convertible Term

This is the same as level term assurance, but with an option to take out a new policy at the end of the term without having to undergo a medical examination or having to provide additional proof of good health at that time. This conversion option is an excellent option to include as it will guarantee you have the option to continue on with your life insurance cover irrespective of your health at that time.

Whole of life insurance

This is where you take out your required level of cover and elect to have the cover provided on a whole of life bases, in other words there is a guaranteed pay-out irrespective of what age you were to die. Providing you are prepared to pay the premiums this policy will continue to run until death.

Mortgage protection insurance

Mortgage protection life cover is a type of term assurance specifically designed to pay off your outstanding mortgage amount at the time of death. Mortgage protection term insurance is usually the minimum level of cover required by a financial institution prior to the drawdown of your mortgage. This cover is usually assigned you’re your mortgage lender who will use the benefits of the policy in the event of a death claim to pay off the outstanding monies due on your mortgage. In the event that the policy provides more cover than is outstanding on the mortgage the surplus is payable to the deceased estate. As mortgage protection cover is a reducing cover policy it is generally the cheapest cover available on the market.

Serious Illness cover

This is a term insurance cover that is designed to provide you with a tax free lump sum payable in the event of you being diagnosed as having suffered from one of the covered serious illnesses. The list of illnesses covered is very comprehensive but currently the most common claims have been, Cancer, heart attack and total disablement. This cover is paid out whilst you are still alive and there is no stipulation that the illness is either terminal or that you are unable to attend work. This class of cover has become very popular with people who would like to protect their mortgage against the effect a serious illness would have to their repaying capability. Life insurance cover can also be included to a serious illness policy protecting the insured’s family against the financial effects of a serious illness or premature death.

aidan kerin

Aidan Kerin
Financial Services Manager