10-second summary: Life insurance in Ireland pays a tax-free lump sum to your family if you die during the policy term. It keeps the mortgage paid, the lights on, and the bills covered — and it’s usually cheaper than you’d think.
Editor’s note: First published 2018 | Refreshed November 2025 with updated Irish insurer details, product examples, and tax insights.
“How do I protect my loved ones if I die?”
It’s not the cheeriest thought, but it’s a practical one. I’m Nick, and I’ve been helping Irish families sort this out for almost twenty years. I’ll keep it simple: no jargon, no doom, just the stuff you actually need to know.
If someone relies on your income, life insurance gives them a financial cushion if you die during the policy term. The payout is tax-free and can be used for anything — clearing the mortgage, keeping the kids in school, or simply giving your partner breathing space.
In Ireland, life insurance isn’t about leaving a windfall — it’s about buying time. Time to grieve without panic, to keep the roof over their heads, and to get back on their feet without the stress of bills or banks knocking on the door.
Side note: we all plan to be around for the next Oasis reunion, but planning properly means your family don’t have to rely on wishful thinking.
There are a few flavours of life insurance. Here’s what they actually mean in plain English.
This one covers you for a fixed number of years — say 20 or 30. If you die during that time, your family gets the lump sum. Once the term ends, so does the cover. It’s great value for young families and anyone still paying off a mortgage.
This never expires. As long as you keep paying, the insurer will pay out whenever you die. It’s pricier because the payout is guaranteed — but it’s perfect if you want to leave a legacy or make sure funeral or inheritance tax costs are sorted.
In Ireland there are two types of Whole of Life: Guaranteed and Reviewable. Guaranteed is good — fixed premiums, no nasty surprises. Reviewable is bad — the insurer can bump up your premiums every ten years and especially after you turn sixty. Avoid it like TikTok investment advice.
Here’s an in-depth comparision of Term v Whole of Life Cover.
💭 Irish Tax Tip: A Section 72 Whole of Life policy can be used to pay inheritance tax. In Ireland, your child can inherit up to €400,000 tax-free — anything above that is taxed at 33 %. A Section 72 plan means your family can pay that bill without being taxed on the payout itself.
This is decreasing life cover that clears your mortgage balance if you die before the loan ends. It’s required by lenders for home loans, but you don’t have to buy it from the bank. Brokers like us compare all five insurers — and banks often overcharge for the same policy. Read our Mortgage Protection guide.
This pays a lump sum if you’re diagnosed with one of the illnesses listed in your policy — cancers, heart attacks, strokes and the like. You can take it on its own or bolt it onto life cover. It’s not as comprehensive as Income Protection, but it’s handy if your budget is tight. See how Serious Illness Cover works.
If illness or injury stops you working, this replaces up to 75 % of your salary until you recover or the policy ends. It’s what keeps the bills paid when you’re still here but can’t work. Learn more about Income Protection.
Swipe on mobile to see the full table.
| Type of Cover | Best For | Typical Cost | What It Covers | Payout |
|---|---|---|---|---|
| Term Life Insurance | Families who want a safety net | Low | Death during a fixed term | Lump sum to your family |
| Mortgage Protection | People with a mortgage | Very Low | Clears your mortgage | Paid to the lender |
| Whole of Life | Leaving an inheritance | High | Guaranteed payout whenever you die | Lump sum to your family |
| Serious Illness Cover | Cover if you’re seriously ill | Medium | Specific major illnesses | One-off lump sum |
| Income Protection | Replacing your salary | Medium | Loss of income from illness or injury | Monthly income until recovery |
There’s no magic number. A good starting point is to imagine what would happen tomorrow if your income stopped forever. How long would your family need financial support? How much is left on the mortgage? Add it up — that’s your cover amount. Most families in Ireland land somewhere between five and ten times their annual income, plus any debts.
If you’d like help working that out, check our guide on how much life insurance you need — or skip the maths and fill out our short questionnaire. I’ll crunch the numbers and send you a personalised recommendation.
Less than you’d think. Premiums depend on your age, smoker status, health, and how much you’re insuring for. The earlier you start, the cheaper it stays. If you wait until your 40s or after a health scare, it’s like joining the gym in January — you’ll pay more for the same results.
And remember, your bank only sells one insurer’s product. We compare all five major Irish insurers — Aviva, Irish Life, New Ireland, Royal London and Zurich — and match you with whoever’s best value for your situation.
Banks are tied agents when it comes to life insurance. That means one provider, one price, no flexibility.
A broker like Lion.ie compares the whole market and fights your corner — especially if you’ve any medical niggles that could spook an insurer. Picking the right underwriter first time can save you months of hassle and a lot of cash.
Price + advice = ❤️
💬 Ready to stop putting it off?
Sorting your cover now takes less than fifteen minutes and means your family won’t be scrambling later. It’s one of those small adulting jobs that makes a huge difference.
Thanks for reading — and if you’ve made it this far, you’re already doing better than most.
Sorting life insurance isn’t about fear. It’s about peace of mind, and once it’s done, you can forget about it for years.
Time to protect your family?
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Nick McGowan
Founder & Broker, Lion.ie
Written by Nick McGowan, QFA RPA APA
Nick is a qualified financial advisor and founder of Lion.ie, an independent Irish life insurance and income protection brokerage based in Tullamore.
He’s been helping people get fair, transparent cover for over 15 years — and was named Protection Broker of the Year 2022.
Life insurance pays a tax-free lump sum to your loved ones if you die, giving you peace of mind that your family will be financially secure no matter what happens.
We compare all five Irish insurers to get you the best deal — and as Ireland’s leading broker for people with chronic conditions, we believe everyone deserves fair cover, no matter their situation.
No one exactly wants to pay for life insurance (trust me, as a dad of young kids, I get it), but if you’ve family or dependents, it’s one of the best things you can do for them.
Now that you know how life insurance works, you can see exactly what it’ll cost in under a minute. No phone number needed — just fill this out and we’ll show you quotes from all five Irish insurers.
I believe in plain English and avoiding the makey-uppy terms insurers and banks use to bamboozle you. If you can’t understand what they’re saying, how can you know what’s best for you?
We’re an online broker — everything’s done over t’internet. We work with all five Irish insurers and specialise in helping people with health issues get fair cover.
I founded Lion.ie because I’m on a mission to make life insurance possible for everyone. I’ll keep it straight, keep it human, and hopefully make the process a little less drab and a little more fun.
