The insurers offer three different types of illness cover to you as a client

Accelerated serious illness cover

You can buy accelerated serious illness cover as part of your mortgage protection or life insurance policy. If you buy accelerated serious illness cover, any serious illness claim will reduce the amount of life insurance or mortgage protection by the amount of the claim.

See below example:

  • Jack buys €300,000 life insurance and €100,000 accelerated serious illness cover.
  • He makes a successful serious illness claim.
  • €100,000 tax-free cash is paid by the insurer.
  • His life cover reduces by €100,000 so he’s left with a life insurance policy of €200,000.

The above is a straight forward case but Mortgage Protection with Accelerated Illness is a bit more complicated.

  • Jack buys € 300,000 mortgage protection and €100,000 accelerated serious illness cover.
  • He makes a successful serious illness claim in year 15 of the policy.
  • The amount of mortgage protection and accelerated serious illness cover reduces over time.
  • By year 10, John’s mortgage protection cover had reduced to €150,000 and his serious illness to €50,000.
  • €50,000 tax-free cash is paid by the insurer to the bank as his policy is assigned to his Mortgage.
  • His mortgage protection reduces by €50,000 so he now has a policy worth €100,00.

You can see here that if you purchase Illness separate to your mortgage protection plan you will get the benefit if a claim is made.

Additional serious illness cover

You can only buy additional serious illness cover in addition to your life insurance.Unlike accelerated serious illness cover, a successful serious illness claim doesn’t affect your life insurance. See below example for Jack again:

  • Jack buys €400,000 life insurance and €200,000 additional serious illness cover.
  • He makes a successful serious illness claim.
  • €200,000 tax-free cash is paid by the insurer.
  • His life cover is not affected and continues at €400,000.

Standalone serious illness cover

Standalone serious illness cover, is bought as a separate policy with no Lifecover attached. Example below:

  • Jack buys €150,000 standalone serious illness cover.
  • He makes a successful serious illness claim.
  • €150,000 tax-free cash is paid to him by the insurer.
  • His serious illness cover policy ends.
  • My Recommendation Tip for Mortgage Protection!
  • On a mortgage protection policy – Just look at the Life cover amount needed and look at a separate Illness Cover Plan which will paid to you directly.

Please try out our user friendly Life Cover Quote System at https://easyquotes.ie/

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