Table of Contents
When people contact us about life insurance, it’s rarely because they’ve ignored it completely.
Most have already done something.
They’ve spoken to their bank, run an online quote, or taken out a policy years ago, assuming it would always be enough.
The problem is that a few early decisions can quietly shape everything that comes after, and unlike switching phone providers or car insurance, life insurance has a memory.
Some choices follow you, even if you later realise they weren’t the best ones.
These are the mistakes we see most often, not in theory, but in real conversations with Irish families who thought they were doing the sensible thing.
This is the most common mistake, and it’s completely understandable.
People assume life insurance is just about finding the cheapest premium for the amount of cover they want, so they run a quote, see a number they’re happy with, and move on.
That approach works if everything about your situation is genuinely straightforward, but as soon as there’s any medical history, previous applications, or even mild complexity, price becomes the wrong place to start.
Different insurers assess risk differently.
Choosing the wrong insurer first can mean higher premiums or tougher terms than were actually necessary, even though nothing about your health or circumstances has changed. Once an insurer has made a decision on you, that decision doesn’t disappear. It has to be disclosed to every other insurer you approach, which is why order matters far more than most people realise.
We see this one all the time.
Someone applies directly online or through a bank, gets accepted, and quite reasonably assumes everything went fine. The problem is that acceptance isn’t always a good outcome.
You might be accepted at a higher premium than necessary, or on terms that another insurer wouldn’t have applied at all.
This matters most where there’s any medical background.
Life insurance underwriting isn’t something you can reset by simply starting again somewhere else. Once a decision is on file, it’s part of the picture going forward.
Banks are very good at one thing when it comes to life insurance, which is making sure the mortgage gets paid if you die.
Mortgage protection does that job well, but it’s limited by design. It clears a loan, it reduces over time, and it doesn’t replace income or support a family in the way people often assume it does.
That doesn’t make it wrong.
The mistake is assuming the bank’s solution is a complete one. It isn’t designed to be, and it was never meant to look at the full household picture.
This comes up with couples.
One person earns the income, the other keeps the household running. When cover is limited to the breadwinner, it’s rarely because the other role isn’t valued, it’s because it doesn’t come with a payslip. Childcare, school runs, meals, logistics, keeping everything moving — none of that shows up neatly on a bank form.
If that person isn’t there, the cost isn’t theoretical.
It shows up quickly in paid childcare, reduced working hours, time off work, and extra support.
We see this most often where advice has come from a bank, because the focus stays on the earner and the mortgage and the wider household impact gets missed.
This doesn’t mean both people always need the same level of cover, but ignoring the non-earning role entirely is a mistake.
A lot of people base their cover on what feels affordable today, which is understandable, but it’s rarely the right way to think about it.
Life insurance is about replacing income, not just clearing debts, especially where children are involved. Once a policy is in place, people tend not to revisit it. Years pass, circumstances change, and the cover stays the same.
By the time someone realises they’re underinsured, fixing it can be harder or more expensive than they expected.
Individually, none of these mistakes sounds dramatic.
Taken together, they explain why we regularly speak to people who have cover that doesn’t do what they thought it did, who are paying more than they need to, or who have quietly limited their options without realising it.
Before applying, get advice.
Not just on price, but on how insurers will view your situation, whether applying now is the right move, and what decisions might affect you later.
That’s where proper expertise makes a difference.
If everything is straightforward, we’ll tell you that.
If something needs to be handled carefully, we’ll explain why before anything is sent to an insurer.
If you’re worried you might be making one of these mistakes, or you just want to sense-check what you’ve been told, we’re her to hlep.
Get life insurance advice by completing this questionnaire
Thanks for reading
Nick
Written by Nick McGowan, QFA RPA APA
Nick is a qualified financial advisor and founder of Lion.ie, an independent Irish life insurance 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.
If you’d like straight answers without the sales pitch, learn more here.
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!
Watch our video
