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Types of Life Insurance

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Hello and welcome to lion.ie

You’ve just found the most popular page on our website.

This is where your journey with us starts:

I hope it ends with us helping you sort out the best life insurance to protect the ones you love the most.

As you’ve found this page, I guess you’re just learning about life insurance?

Excellent, this is the best place to start:

In this article I go through the different types of life insurance available in Ireland.

And here I discuss where you can get the best offers on life insurance.

If at any stage, you decide you need some help, just pick up the phone and call me on 05793 20836. Between the two of us we’ll nail down the perfect cover for you.

But first, meet Ann & Barry:

 Types of Life Insurance

You’re not alone

But by the time you finish this article, you’ll be an expert:

1) Mortgage Protection

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What is mortgage protection?

Question : What does mortgage protection do?
Answer: It clears your mortgage on death.

Mortgage protection clears the remaining balance on your mortgage. It’s the cheapest type of life insurance you can buy.

If you’re getting a mortgage on a residential home, you must buy mortgage protection (not life insurance).

But you don’t have to buy it from your bank.

In fact you shouldn’t.

Why not?

Imagine,  in a few years time, you find a better mortgage deal at a different bank .

You decide to switch your mortgage to the new bank. What will happen your current mortgage protection policy?

Your bank will cancel your policy as soon as you move to the new lender forcing you to apply all over again for a new policy.

What if you couldn’t get a new policy in the future?  You would be stuck paying your expensive mortgage.

But, if you had the good sense to buy from a broker, you can bring  your policy with you.

Click here if you’d like to compare quotes from 6 insurers.

We hate when companies hound us as soon as they get our phone number so we don’t even ask for yours. When you’re good and ready, you can contact me!

Want to know more? Check out our ultimate guide to mortgage protection.

Moving onto life insurance…

2) Life Insurance

life insurance is family protection blog image

Question : What does life insurance do?
Answer: It leaves money to take care of your family.

This is also known as term life assurance because it lasts for a specific number of years (the term).

The life insurance company pays a tax-free lump sum to your family on your death.

Your family use the money to replace your income, pay the bills and continue to live as you would have wished.

The life insurance payout is tax-free. But those who inherit 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.

Find out more in… What is ? »

Ready to get a quote? Click here, it will help you get a handle on how much you need to budget for.

Next we’ll look at specified illness cover.

3) Specified Illness Cover

Question : What does specified illness cover do?
Answer: It pays you a cash lump sum while you’re alive.

This is also known as serious illness cover or critical illness cover.

Mortgage protection and life cover payout when you’re gone. But with specified illness cover you’ll get to use the money while you’re still here.

You will use the payout to cover your day-to-day expenses and medical bills while you’re out of work. So you can focus on getting better without worrying about money.

Life insurance takes care of your family, serious illness cover takes care of you.

Find out more in…  Specified Illness Cover ».

Be careful when buying serious illness cover. The most important thing is not the amount of illnesses covered by the insurer but how easy it is to make a claim. Make sure you understand why it’s easier to make a claim with one insurer over all the others.

You don’t need loads of serious illness cover.

I think €30,000 is enough – here’s why.

4) Guaranteed Fixed Price Whole of Life Cover

Question : What does whole of life cover do?
Answer: It leaves a lump sum whenever you die to cover funeral expenses.

(link to our Irish Times piece)

Whole of life assurance will pay a cash lump sum whenever you die, as long as you continue to pay the premiums.

You can’t outlive whole of life cover which makes it ideal for funeral expenses or to leave a gift. Also, unlike over 50s life insurance…

There is also special type of cover called Section 72 whole of life assurance.  Payouts are not subject to tax if used to pay inheritance tax. Did you know the most you can leave to your child tax-free is €225,000?  They will have to pay 33% inheritance tax  on the balance unless you have a S72 life insurance policy in place.

We can’t quote online for whole of life cover. Please fill in the short form at the bottom of this page or call me on 05793 20836 for a quote.

5) Over 50’s No Medical Life Cover

keith richards

Question : What does no medical life cover do?
Answer: It guarantees life insurance for everyone regardless of health.

Anyone over 50 can get this type of life cover regardless of their health.

There are no medical questions, you just need to sign an application form to get immediate cover.

As there are no medical questions, the price of this cover is higher than term or whole of life assurance.

NB: If you die (other than by accidental death) within the first two years, you’ll only get back what you paid in. After two years it becomes a traditional whole of life assurance policy. 

Sorry but the insurers don’t allow us to quote online for this. Instead use the “get in touch” form at the bottom of this page or call me on 05793 20836. Remember, you might qualify for normal life insurance.

6) Income Protection

Question : What does income protection do?
Answer: It pays you an income for as long as you cannot work.

Also known as Permanent Health Insurance. It pays you up to 75% of your annual salary should you be unable to work due to ANY illness, injury or disability.

You need income protection if you’re the main breadwinner or self-employed.

By the way, in the nicest way possible, you’re a lunatic if you’re self-employed and don’t have income protection. Takings risks is part of being self-employed but not having income protection is daft. You’ll get nowt from the government if you’re out of work. Not a sausage.

How long could your family cope if your income stopped for an extended period of time?

Income protection has a lot of booby traps. Don’t buy it before taking professional, independent advice from a broker who deals with all 5 providers. (Aviva, Friends First, Irish Life, New Ireland and Royal London).

The most important thing with income protection is how the insurer handles claims. There is no point buying a policy with loads of bells and whistles only for it not to pay out.

Read more : What is income protection?

Types of Life Insurance – Conclusion

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Well there you have it, congratulations for reaching the end – there’s quite a bit there to digest.

As you can see, there’s no one size fits all when it comes to life insurance.

I’m married with three young kids, am self-employed and have a Celtic Tiger mortgage so I’m insured up to my oxters with:

Your situation is different so you need different cover.

It’s hard to pick the perfect policy from all the different types of life insurance available – especially doing it on your own.

We’re the life insurance experts. Our job us to help you just like we’ve helped people like you.

You’ll get the most suitable cover at the best price – saving you time, money and hassle.

Over to you..

I hope that has helped clear up the different types of life insurance.

If you’d like to discuss your own needs in more detail, please get in touch.

Otherwise, I wish you good luck in your quest for life insurance…

….we may bump into each other again further along the path.

Nick McGowan
lion.ie | making life insurance easier

money mate awards winner 2016

 

 

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