Life Insurance – Frequently Asked Questions
What is Life Insurance?
Life Insurance pays a lump sum, which is normally tax-free in the event that a person insured dies during the course of the policy term. It is possible to have Single Life Cover, Joint Life Cover and Dual Life Cover. It is also possible to use life insurance to protect a mortgage loan, your family and your business.
Are Life Insurance and Life Assurance the same thing?
The short answer is yes, the terms are interchangeable. But strictly speaking life assurance should refer to whole of life cover and life insurance to term cover.
How much life cover do I need to protect my family?
For family protection purposes, the lump sum provided by your policy should be ideally invested to provide an income over a set time frame. For example, based on current interest rates €450,000 life cover would provide an income replacement of circa €30,000 for 20 years.
On average, your total amount of life cover should equate to 2/3rd of net annual income multiplied by your number or years to retirement. Include a continuation option to review and extend cover beyond this.
For how long can I be covered?
You can choose the length of time for which you want life cover up to a maximum age of 90 next birthday. If you choose a shorter term, to say retirement age, you can include a continuation option to extend your cover later.
What’s the difference between joint and dual cover?
Joint cover means the policy will only pay-out one time only on the first to claim of the 2-people covered.
Dual cover, will pay out again, if a subsequent claim occurs during the policy term.
Joint cover is more suited to mortgage loan cover and dual cover to family protection. Dual cover, also allows for different levels of cover on each person as required, so in effect offers better and more flexible cover, at very little extra cost.
What is a continuation option?
For a small additional cost, a continuation option is a very valuable benefit which allows you to extend your cover under a new policy. You can use this option at any stage throughout your policy term, without having to provide any fresh evidence of health.
How long does my quote remain valid?
All quoted premiums assume standard medical acceptance and remain valid for 7 days, based on age each quarter.
Is the premium fixed?
Yes, we quote only guaranteed premiums without reviews. If you choose to inflation protect your cover (3% per annum) by including indexation, the cost will also increase at an average rate of 4% per annum dependent on the insurer.
How does including Serious Illness cover work?
We automatically quote “Accelerated” cover, where a serious illness claim reduces the life cover by the serious illness cover amount. Should you require independent life and serious illness cover levels, please contact us.
How do I ensure best value for money?
We compare all leading life insurance providers in Ireland, to ensure the best cover at the best market price. All life polices offered are free from premium reviews, and our “lowest price guarantee” means we refuse to be beaten.
How do I apply for my life insurance policy?
Once you run your quote, we will email you full cover details along with your online application form. Simply follow the instructions in this email, on how to complete and return your application form.
Will I have to do a medical?
Typically there is no need to do a medical. However, if you are seeking a very high level of cover for your age, or for applicants with a serious ongoing medical condition, a medical exam may be needed. If this is a concern, its best to be upfront and give us a call and we will quickly be able to tell you, what extra medical information will be sought.