Life Insurance

Compare life insurance to find your best deal fast. Their are various types of life insurance to choose from, depending on your cover needs, age, health and budget. Below, we help you examine your life insurance needs, as well as to explore the different types of policies on offer, how they work and what affects their price, across the Irish insurance market.

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life insurance top-tips
life insurance


life insurance top-tips

  1. Life cover should be used to protect against loss of income up to retirement age and can be extended if required thereafter. Opt for a realistic and affordable cover level.
  2. If covering 2 people, always opt for Dual Cover, over Joint Cover for best value benefits.
  3. Always include a Continuation Option, as it allows cover extension at standard rates, regardless of any change in future health.


 

Compare Life Insurance

Consider Your Needs

Take a little time out to consider the different reasons you may need life insurance, before then going on to explore the different types of life insurance policies on offer.

Here you can find useful life insurance articles, covering different life stages, including:

Young Couples, Young Families, Maturing Families, and Empty Nesters.
 

Term Life Insurance V Whole of Life Assurance

When it comes to buying life insurance the type of policy you should choose will be mostly dependent on your own specific needs and the most popular and generally the most suited for family protection purposes is a term life insurance policy.

Term Life Insurance

Term life insurance is the most straightforward and most popular form of life insurance. The price is fixed for your chosen policy term (max to age 91 next birthday) and the cover pays out a tax-free lump sum without fuss to your estate on death.

Whole of Life Assurance

Whole of Life Assurance is very expensive in comparison with term life insurance and is best suited for the purposes of paying inheritance tax, should this be of relevance to the beneficiaries of your estate after their tax-free thresholds are applied.
 

Term Life Insurance – The Popular Choice

With term life insurance you can choose to have two people on the same policy and include serious illness cover if you so wish. Below we explain everything you need to know about “term life insurance” including the automatic and optional policy features and benefits.

The Policy Term

With term life insurance policies, the term can run from 10 years to a maximum of 50 years, but not go beyond age 91 next birthday. If you decide to include specified serious illness cover, the maximum cover term is to age 75.

To keep the cost down and to provide the right coverage amount when it’s needed most, the general recommendation is to take out your cover up to your normal retirement age, but to also include a continuation option to allow the choice to extend cover later.

The Cover Level

As a general rule of thumb, you should consider a multiple of 10 times your annual income and then deduct any life cover (death in service benefit) already provided by your employer (if any). You should also factor in any debts outside your mortgage not already protected. Please keep in mind that up to retirement age, your life insurance should be set up to replace the loss of income. Once you get to retirement age life insurance is typically more about having adequate funeral insurance.

The Cover Basis

Single cover – covers one person under the policy.

Joint cover – allows you to have 2 people on the one policy, but it only has 1 cover pay-out, on the first claim.

Dual cover – allows for 2 people on the same policy, but provides pay-outs on both people, under separate claims.

The Price

The price is based on your age, smoker status, and your health. So, you will need to answer some medical questions when making an application. Once your policy commences, the price is fixed.
 

Term Life Insurance – Automatic Benefits & Features

Automatic Cover

  • Accidental Death Benefit – A lump sum paid in the event of death caused by an accident, when the insurer is still only processing your application form.
  • Terminal Illness Benefit – If you are diagnosed with a terminal illness your full life cover sum will be paid out.
  • Children’s Life Cover – A lump sum benefit is paid out.

Automatic Features

  • Guaranteed Insurability – This allows you to increase your Life and or Serious Illness benefits by the lesser of 50% of the original benefit at the start date of the policy and €100,000, without underwriting following certain life events, that may justify a need for increased cover, such as getting married or having a baby.
  • Advance Funeral Expense Payment – This allows for an early payout of an amount of life insurance cover at claim stage to cover the cost of a funeral, within certain limits.

Term Life Insurance – Optional Features

Optional Features

Continuation Option

Including a continuation option when originally taking out your policy, allows you the option to later extend your cover term right into old age. When your initial policy term is coming to an end, you can then choose to extend your cover term with the advantage of not having to answer any fresh medical questions at the time. You can opt to extend just part of your original cover amount or extend the full cover amount, up as far as age 91 next birthday dependent on the insurer.

Inflation Protection Option

Including inflation protection means that both the benefits and premiums will increase at a set percentage on your policies annual anniversary. This allows for the real value of your benefits to be protected into the future. The annual benefit always increases at 3% pa, while the premium may increase at circa 4% pa, dependent on the insurer.
 

Term Life Insurance – Optional Benefits

Optional Cover

Specified Serious Illness Cover

Although life insurance policies don’t pay out on the diagnosis of a Serious Illness, you can add specified serious illness cover to your life insurance plan and pay a higher premium as a result.

However, adding serious illness cover to your life insurance policy rather than having to separate policies can be more cost-effective especially if done so on what’s called an “accelerated basis”.

An accelerated life and serious illness plan will provide you with both Serious Illness Cover and Life Cover, if a serious illness claim is paid on this type of policy, the life cover amount is canceled out. Whereas, if you die without ever making a serious illness claim, the full life cover payment is made.
 

Compare Life Insurance – Other Specialist Policy Options

Other Kinds of Life Insurance

Apart from the most popular form of family life cover “Term Life Insurance”, there are also other specialist life insurance policies where One Quote offer quotes and advice, as follows:

Term Life Cover, with a partial whole of life cover

With this type of policy, you stop paying the premium after your chosen cover term, but a proportionate lump sum of up to €50,000 will still be paid out, no matter when the life insurance claim occurs. Although with standard term life insurance, you can maintain the full cover up to age 90, this can be a preferred option for some people, as for an extra cost you are guaranteed a pay-out should you live well into your 90’s or beyond!

Section 72 – Whole of Life Assurance

Estate Planning requires adequate life insurance. If you die leaving assets behind, your spouse will not be subject to inheritance taxes, but your children may well be. Inheritance tax is charged at 33% on all inherited assets above their tax-free threshold and a special type of life insurance policy, known as a Guaranteed Whole of Life – Section 72 Policy, is designed to provide for the payment of this tax.

Late Life Cover
Late Life Cover also often used for Funeral Insurance offers much more, allowing a discounted fixed cost life cover plan with the coverage lasting up to age 91. You will need to complete an application form, but there is no automatic medical for life insurance of up to €50,000. You choose the amount of cover (from €10,000 ) and to get you started, we will arrange for your first month’s cover absolutely free!

Tax Deductible Life Cover
Tax Deductible Life Cover is most commonly and sometimes confusingly known as pension term assurance. In a nutshell, it is tax-efficient Life Insurance for workers in non-pensionable employment and for the self-employed including owners of small limited companies. It allows for full tax relief on the premiums at up 40%, if paid personally.

Mortgage Protection

Mortgage Protection is a form of life cover used to protect your lender should a death claim occur during the mortgage loan term. The policy is designed for the cover level to reduce over the term of your policy inline with your outstanding mortgage loan balance. Your lender’s minimum requirement will be for life insurance, but you can also choose to include serious illness cover. It typically makes the most sense to have this policy separate from your family protection policy.

 

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