But what if I don’t die? Isn’t life insurance a waste of money?
Some people find it difficult to see the value of life insurance if they outlive their policy.
And I could bang on about things like peace of mind and the value of knowing your loved ones are OK should the worst happen
But instead, let’s look at what I call “living” benefits of life insurance (or what you can get while you’re still above ground)
When it comes to pizza, I’m a Farmhouse man – ham and mushroom does it for me.
Hannah, on the other hand, loves pineapple and anchovy – yes, my wife is evil.
We both love pizza but when it comes to the toppings we can’t agree. Fortunately, our pizza guy caters for us both. He doesn’t care what goes on the pizza as long as the euros go in his pocket.
We all have a universal idea of what a pizza is – dough base covered with toppings.
Life insurance is similar but here the dough is the basic payout on death we’re all familiar with while the toppings are the riders or extras.
Riders help you customise your policy until it’s just right.
Pays you a weekly amount of up to 50% of your average weekly earnings if you’re unable to work due to an injury resulting from an accident. This payment will be made for a max. of 52 weeks
in total.
In other words, your policy pays you every week you cannot do your job due to an accident.
How does it compare with income protection?
tl/dr Get income protection instead.
Be careful of the exclusion on personal accident cover. For example, I have taken this from the Zurich T&Cs
• Disability which occurs as a result of lifting, twisting, turning or bending cannot be considered as having occurred as a result of external violent and visible means and therefore cannot be considered under this
benefit.
Available on life insurance policies from:
This pays up to 12.5% (to a maximum of €32,500) of the Specified Illness lump sum if you have one of the major operations covered. This amount is payable up to 4 times to a maximum total payout of the lower of 50% of the Specified Illness lump sum or €130,000.
In other words, you receive payment of a certain percentage of your specified illness cover should you require major surgery.
The following operations are regarded as Major Surgeries under this policy:
• hip replacement;
• knee replacement;
• surgery to the brain or meninges of the brain;
• surgery to the lungs;
• surgery to the spinal cord or canal;
• surgery to the spinal vertebrae and intervertebral discs;
• surgery to the Cranial Nerves; and
• surgery involving the removal of an eyeball or orbital contents.
You will receive a smaller payout for an intermediate surgery:
The following operations are regarded as Intermediate Surgeries under this policy:
• amputation or replantation of limbs;
• coronary catheter treatment including angioplasty;
• hysterectomy;
• mastectomy and breast reconstruction;
• removal of spinal disc;
• single vessel coronary angioplasty;
• surgery to the pharynx;
• surgery to the cerebral, carotid, iliac or femoral arteries;
• surgery to the pituitary or pineal glands;
• surgery to a kidney;
• surgery to an inner ear;
• surgery to the bile duct;
• surgery to the bladder;
• surgery to the gall bladder;
• surgery to the larynx;
• surgery to the liver;
• surgery to the nerve roots;
• surgery to the oesophagus, stomach, duodenum, jejunum, ileum, colon, or rectum (excluding
haemorrhoidectomy);
• surgery to the pancreas;
• surgery to the parathyroid, thymus, or adrenal glands;
• surgery to the prostate;
• surgery to the spleen;
• surgery to the thyroid; and
• surgery to the ureter.
Available on policies from:
If you’re in the hospital for a certain number of days, the insurer will pay you an agreed amount of cash per day.
Available on policies from:
If you’re unable to work because of accident or illness for a period longer than 13 weeks, the insurer will keep you covered but will suspend your premiums.
Available on policies from:
Pays you cash if you suffer one of the following injuries:
New Ireland is the only insurer offering broken bones cover.
PTD is an additional benefit to your serious illness cover.
If you are permanently, totally, and irreversibly unable to do your job due to illness/accident/disability, the insurer will pay out your serious illness cover as a lump sum.
PTD cover lasts until you turn 65.
At least twelve months of inability to do your job is normally required to support a claim.
If you or someone in your extended family (children, spouse/partner, parents, spouse/partner’s parents) becomes unwell, you can have an independent review of your diagnosis.
Available on policies from:
Available on policies from:
Available on policies from:
That’s a breakdown of what you can get from your life insurance even if you don’t make a death claim.
You can also add other living benefits such as a payout for a specified serious illness.
Of course, income protection insurance only pays out while you’re alive and that’s why I think it’s the most important policy you can buy.
Got a question on how any of these additional / living benefits work?
Complete the quick outline form below and I’ll be right back.
Nick McGowan
lion.ie | making life insurance easier
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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