What is Life Insurance?

Term Life Insurance is life insurance that covers you for a specified and agreed length of time. In the event of death during this time, a cash lump sum will be paid out. It is particularly important to have for the key years that you might have dependants who rely on your income.
You can also take out a Whole of Life Type Plan which will pay out a guaranteed pay-out when you die, these type of plans usually hold higher premiums.

The type and amount of Life Cover you choose should be based on your individual circumstances and requirements.
Typically, it’s important to have Life Cover in place if your death will have a financial impact on others. If you have a family and dependants, your death could be financially devastating to their finances.
However, if you have no dependants, you may just require minimal cover to pay your outstanding debts and ensure your affairs are left in order.

A life cover pay-out can ensure:

  • your mortgage is paid off when you die and your family is left with a home free from large monthly repayments
  • funeral expenses and any outstanding debts are cleared
  • your dependants can continue to maintain their lifestyle despite the loss of your earnings

Frequently Asked Questions

Your ability to amend your Life Cover amount depends on the type of policy you choose:
• Some policies are flexible
• Some policies don’t allow you to change the cover amount and require you to apply for a new policy.
If the amount of cover is being increased or the term extended, you may need to provide medical evidence for the increase in cover or term extension. Some policies have a Guaranteed Insurability Option that allows you to increase the amount of cover within 3 months of moving house, getting married or having or adopting a child without having to provide evidence of health.
Currently Aviva & Royal London offer term cover up to the age of 90. Aviva will only cover a minimum benefit of € 30,000 while Royal London will cover € 10,000 Benefit.
If you feel you might live higher than age 90, you might then need to look at a Whole of Life type plan.
Decreasing Mortgage Protection Cover is the cheapest form of Cover available. Price depends on the size of your mortgage, term, your age, smoker status and health condition.
The main reason on this would be non disclosure (not telling the whole truth on your application).
Fraud is another example in that medical reports might be falsified to support a life insurance claim.
Joint cover is insurance on two people but a claim is only paid out on the first death. If one person dies, the policy ends.
Dual cover is insurance on two people but a claim can be paid on both deaths. If one person dies, the policy continues in the name of the survivor.

Still need Help?

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