So, you’re looking for a straightforward life insurance policy that does its job, i.e. pay out a tax-free cash lump sum to your dependents when you’re gone. You want the cover to last a suitable time, be for a suitable amount, and of course get the best fixed price out there, right?
Okay, then a Term Life Insurance policy is a great choice and by far the most popular, when you want quality protection at a set price for a set amount of time.
Term Life Insurance
Here’s how it works. You choose the length of time (policy term) and amount of coverage, and your payments stay the same until the end of your term.
The maximum policy term is 50 years, or to your 91st birthday, but if you want a shorter term to reduce the cost that’s up to you.
Most people opt for cover to retirement age, as by this time their expenses should be less, but if you want longer coverage perhaps for a lesser amount beyond then you can add what’s called a Conversion Option, also known as a continuation option, to your term life insurance policy at the outset.
A conversion option should add less than 5% to your policy and allow you the option to extend your cover beyond its original term, free from any fresh medical questions at the time of conversion.
Subject to affordability you should aim to cover yourself for up to 10 times your annual income less any life insurance provided at work.
If you want to include two people on your policy, you could always choose Dual Cover over Joint Cover. Surprisingly Dual cover is much the same price as joint cover, but provides far better cover in that it pays on both people covered as individuals, joint cover only pays out on the first claim.
Getting the Best Price
Here’s where it’s easy to go wrong, you see an ad on the telly and hear mention of a loyalty discount and you jump on it, understandable, but not a good idea.
You should never buy term life insurance without comparing the market for the best price. It sounds obvious and is easy to do, but people are fooled by thinking, I will keep all my policies with the one provider and are then drawn in by the mention of a discount:
The discount is only on their price not on the lowest market price!
Although all term life insurance policies do the same thing, by comparing the market you can avail of extra complimentary benefits, get a bigger discount, and get the first month free!
Here at OneQuote.ie you can instantly compare every life insurer on the Irish market and get a 15% discount on the cheapest price! But that’s not all you also get complimentary benefits at no extra cost, plus the first month free!
To find out more run your Quote, or call us on: 01 845 0049
Ken O’Gorman – QFA
OneQuote.ie | Smart Financial Protection