Term Assurance is a policy taken out for a specific period of time and will provide a single cash payment to your dependants if you die during the term of the plan. Your family can use this lump sum to cover any expenses they might have – for example, funeral expenses or other debts. It can also be invested to provide a regular income.
What are the Benefits of Term Assurance?
A tax-free lump sum payable in the event of death within the policy term to help your family maintain the same standard of living that they enjoy today.
Terminal Illness Cover
This provides for the payment of the death benefit upon diagnosis of a terminal illness.
Peace of Mind
The knowledge that if you die, that your family will receive a lump sum to assist them financially for the difficult times ahead.
You pay the same premium at the start of the policy as at the end. Premiums and benefits may however be indexed to keep in line with inflation – it is recommended that you take this option on longer term policies.
Did you know?
- The vast majority of life cover is used to protect mortgage loans – if you die the proceeds of the policy goes to your bank to pay off your mortgage – most Irish families are not adequately protected should the main provider die.
- On average, smokers pay double the rate for cover as non smokers – if you have quit recently you should consider reviewing your policies.
- The beneficiary of your life assurance policy may have a tax liability in the event of the policy paying out. This will depend on their relationship with you. You should therefore consult an adviser before purchasing life cover.
- Life assurance is not only for domestic situations. Businesses can and should take out life policies on directors, key employees and on partners.
Critical Illness Cover is a policy which will pay out a lump sum to the policyholder if they are diagnosed with one of the specified illnesses that the policy covers. Having a critical illness policy itself will not cure you, but it will help financially and that can make a huge difference. You may be unable to work
or you might have to pay for expensive medical treatment
and the lump sum payable in these cases will help ease your worries.
You are 4 times more likely to suffer from a critical illness before age 65 than to die, yet the majority of people do not take out critical illness cover. Cost is often cited as a reason but it is possible to tailor the cover to suit both you and your budget.
Did you know?
- 1 in 3 Irish people will develop cancer by the age of 75 and 10,000 suffer from stroke annually
- Critical Illness policies do come with many restrictions and different life companies cover different illnesses, so it is important to contact an adviser before purchasing a critical illness policy.
- Critical Illness can be purchased as part of a life assurance policy or it can be taken out as a standalone policy.
Mortgage Protection will pay off your homeloan if you die during the mortgage term. Mortgage protection is the cheapest form of life assurance
and the premium will remain the same during the term of the policy.
Do I need Mortgage Protection?
If you have a mortgage on your principal private residence, you must have it covered with a life insurance policy. For other property investments, lenders may require some form of life cover, this will usually depend on how much you may be borrowing, your current financial status and your relationship with the lender.
Did you know?
- Many people automatically signed up to the life cover provided by their mortgage lender without giving a second thought to the cost of the policy, this may not be the best value available.
- If you were a smoker when you took out your policy and have now given up for at least 12 months – you may qualify for cheaper rates – try our mortgage quote calculator below.
- If you have dependants you should also have life cover in addition to your mortgage cover.
- Mortgage protection does not cover your repayments if you cannot work because you are made redundant, or cannot work because of sickness or disability.
How would you finance your lifestyle if you were unable to work for an extended period of time due to illness? Income protection pays out a regular cash payment that replaces part of your lost income if you have a medium to long term illness or disability and unable to work.
Your income is one of your most valuable assets, it is important that this is protected just as you would protect any other of your assets. To qualify for Income Protection you must be in full time paid work or be self employed.
When to consider income protection:
- If are self employed and have no alternative sources of income.
- If you have little or no sick pay from your employer.
- If have dependants who rely on your income.
- If you have no other source of income or money.
Did you know?
- The current social welfare disability benefit is €10,286 for an individual rising to €19,610 for a family of two adults and two children.
- Self employed people are not entitled to any disability benefit.
- Income protection only covers illness or disability. However it does not provide protection against redundancy.
- Premiums are tax deductible at your marginal rate of tax.