Term Life Cover can be taken out to age 91 next birthday, but this may prove expensive, so  we recommend a higher level of cover up to retirement age (65) and then reducing your cover down in old age.

You need a higher level of cover to help replace lost income when you’re working but a lower level of cover once retired to cover funeral expenses etc.

To allow this level of flexibility, include a “Continuation Option” in your quote.

However, if you’re already retired and you are more concerned about funeral cover, then compare the cost of whole of life insurance against term life insurance and opt for what’s affordable.

Life insurance benefit is paid out as a tax-free lump sum. Joint and Dual life policies are paid directly to the second life assured and are always tax-free, as they don’t form part of your estate. Typically, unless you leave a very large estate on your death, your spouse will not have to pay tax on the life insurance pay-out.

However, anyone who inherits the money after your death, depending on their relationship to you, may have to pay inheritance tax. How much tax they pay depends on how much they inherit and Revenue rules at the time of your death. If you have a large estate, you can buy a specific type of life insurance policy, to provide a tax-free lump sum to cover any inheritance tax liabilities that your beneficiaries may have when you die.

If you arrange a policy on your own life only, the benefit is paid directly to your estate and distributed in accordance with your will. Alternatively, you can arrange the policy in trust for payment to whoever you have named as the beneficiary, once the insurer has received proof of your death.

If your spouse or partner takes out a policy on your life, the benefit could be paid to them without going to your estate. If you have a 2 person policy the benefit is usually paid directly to the surviving policyholder named on the policy.