A: Essentially, the difference between term and whole of life insurance is that term life insurance provides protection for the policy term only, i.e. the benefit will only be paid should you die during the policy term.
Whole of life insurance or life assurance is a slightly different product and will pay a lump sum on your death, the policy is not limited to any term.
A: Mortgage protection is a form of life insurance that will pay off the balance of your mortgage if you die during the term of the policy.
A: Serious illness cover, or critical illness cover, can be purchased as an add on to a life insurance policy or as a standalone form of insurance.
This type of financial protection will pay a lump sum if you are diagnosed with a serious illness that is specified in the policy such as heart attack, stroke or cancer, for example.
A: Convertible life insurance gives the policy holder to make changes to their policy during its term without providing new medical information or purchasing a new policy.
You may be able to increase the sum assured in the policy, lengthen the term of the policy, or in some cases, convert your term life insurance policy to a whole of life policy.
A: Pension term life insurance is a policy that offers protection until you reach retirement age. This type of life insurance may benefit from tax relief as part of your retirement planning.
A: Indexation refers to the way that the sum paid out by a life insurance policy may increase by a percentage over time to allow for the effects of inflation.
Indexation is an important option when purchasing life insurance when you consider how house and general prices increase over time meaning that what seems a generous level of protection now may not have the same purchasing power after some time has elapsed.
A: When wondering if you need life insurance you must consider if anyone relies on your income, what debts you would leave behind if you died, including mortgage debt.
Life insurance is a sensible way to protect your family’s financial well-being and ensure they have a place to live if the unexpected happens.
A: If you and a spouse or partner wish to insure both of your lives, you may choose between joint or dual life insurance cover.
Joint life insurance covers both lives on a first death basis. This means that if one of you dies, the policy will pay out then cease providing no further cover.
Dual life insurance will pay if one policyholder dies during the term of the policy, then continue to provide cover to the remaining policyholder until the term elapses.
A: Yes. you may wish to arrange life cover to pay for your funeral or other outstanding expenses that your family may incur if you die or to provide financially for loved ones who may require assistance in the future.
A: Yes. Your contribution as a stay at home parent is significant and would be costly to replicate if something were to happen to you, even if you do not work outside the home and earn an income.
Life insurance is important for stay at home parents as well as for those who earn an income and offers valuable financial protection.
A: Not necessarily. Depending on your age, health, and amount of cover, life insurance can be relatively affordable.
Having an essential financial safety net in place to provide for your family and loved ones if something happens to you provides peace of mind and a qualified insurance advisor can discuss your options with you to find a policy that suits your budget.
A: Not necessarily. Many new life insurance customers are accepted on standard terms and do not need to undergo a medical.
Depending on the amount of cover you require, and your age and health, you may be asked by a prospective life insurer to provide further information on your health or, less frequently, to undergo a full medical.
There are several companies that provide life insurance in Ireland, here are the most prevalent on the market.
- Irish Life
- Royal London
- New Ireland
- Aviva
- Zurich
Each of these companies has a strong track record of paying claims. Choosing between companies may depend on factors such as the level of cover you require, your circumstances, and your budget.
A: No. You may be encouraged to purchase life insurance or mortgage protection by your lender at the time of applying for a mortgage, but you are under no obligation to purchase from them.
Having sufficient mortgage protection or life insurance cover in place may be a condition of drawing down your mortgage but shopping around will likely mean that you can get mortgage protection or life cover that suits you best and may be better value than purchasing from your lender.
A: In choosing life insurance cover, you will need to be guided by the type of cover you want, your circumstances and your budget.
It can really help to discuss your options with a qualified insurance advisor who has experience of the Irish life insurance market and can guide you, such as our insurance experts at Compare Insurance.
A: Yes, it is a good idea to review your life insurance and financial protection over time.
Rather than taking a ‘set and forget’ approach to life insurance, you should review your cover as major life changes, such as marriage or divorce, the birth of children, new home purchases, and changes in earnings over time may mean that your previous cover no longer meets your needs.
A: Yes, it is possible to switch life insurance providers but it is absolutely essential that you ensure that you are fully aware of any differences in cover and/or benefits before switching.
It is also really important not to cancel any existing life protection you may have in place until your new policy is in place to protect you.
A: Compare Insurance can help you. Have a look at all the information and articles on our website to arm yourself with knowledge about how life insurance works.
It’s also a really good idea to get professional advice when purchasing life insurance so you can decide what cover you need to protect your family and loved ones.
Fill in our online assessment for a free, no obligation, consultation with a qualified financial advisor who can go through your options with you and get you great, affordable life insurance cover.
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