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The Going Grey Guide To Getting Life Insurance When You’re Over 40

So, you’ve done it. You’ve hit the big four-oh-no – welcome to the club!

Where did that time go?

Sure wasn’t it only last year that Jackie Charlton was leading the Irish team to glory, or Johnny Logan was asking all of Europe to hold him now?

Suddenly, you’re worrying about impending piles and hair loss (or, even worse, growth).

But even darker things are gnawing at your conscience. Like a 40-year-old Spiderman probably says, with great age comes great responsibility (and a touch of arthritis in your knees).

Life Insurance at 40

To quote the aforementioned Johnny Logan, “what’s another year?” As it so happens, waiting another year can make a big difference to your Life Insurance policy especially as you creep towards 50.

Why?

Age, my fortied friend, I’m sad to be the one to break it to you but death is edging closer so you’re a biggest risk for a life insurance company than a person in their 30s.

life_insurance_over_40

Once you hit 50, you could end up paying four times more  than if you got on the insurance train earlier because your risk to the insurer increases.

In a nutshell: it’s worth getting it sorted as soon as possible for peace of mind and pocket.

So where do you start?

The types of Life Insurance

1. Mortgage Protection

You’re legally obliged (a nice way of saying ‘made’) to have Mortgage Protection if you get a mortgage in Ireland. If you die before clearing your mortgage, the provider will pay off what’s owed. If you have a family, they’ll get a mortgage free home which is handy but they will lose your income. You see mortgage protection won’t leave them a lump of money to replace your earnings, that’s what life insurance is for

2. Life insurance

The big cannoli of insurance: if you die, your financial dependents get a lump sum that they can dip into to replace your income.

life_insurance_40

If you’re dead, you’re not earning unless you can get a job as a poltergeist in the next world. Try explaining that your your spouse.

But what if you you don’t actually die but you fall ill and can’t work – a much more likely event as you get older – can you insurer against that? Yessiree Bob.

3. Income Protection

If you’re unable to do you job due to any medical recognised conditions for over four weeks, Income Protection (sometimes called Salary Protection) pays you a replacement salary of up to 75 percent of your income. It will continue to pay out until you get back to work or retire.

But it’s not all about staying out of work and getting “free money”, trust me you’ll soon get bored. The best income protection policies include rehabilitation and retraining benefits so you can get back to work and feel like you’re contributing to society again.

This one is particularly relevant if you’re a high earner on a solid career path. If you got sick, what would you miss out on and how would your lifestyle suffer? Say goodbye to impromptu weekend ski trips, anyway. You’ve worked bloody hard to get where you are in your career, don’t let illness rob you of your dignity and pride. Nobody wants to become a financial burden – income protection insures you won’t.

Finally, let’s look at the final type of cover available

4. Serious Illness Cover/Specified Illness Cover/Critical Illness Cover

Serious Illness Cover is similar to Income Protection in that it pays out while you’re above the ground. If life insurance and mortgage protection are really death insurances, income protection and serious illness cover are living insurances.

Serious illness cover pays a tax-free  lump sum if you get any of the illnesses covered in the policy. Currently there are 98 illnesses covered but 80% of all claims come from the big three:

big three serious illnesses

The next eight serious illnesses altogether account for approximately 17% of all claims paid

8 serious illnesses

So the other 87 illnesses account for just 3% of all claims. What I’m trying to get at is don’t be blindsided by the insurer shouting about covering the largest amount of illnesses. What you need to find is the insurer who offers the widest definition for the Big 8 illnesses outline above.

What’s the best Life Insurance deal?

Let’s get this out of the way: while Life Insurance is magic when your family needs it most, it’s a pain in the arse when you’re coughing up the cash every month so you want to make sure you get the best one. But is there a “best” life insurance provider?

There’s no magic bullet policy for everyone. Your personal situation is unique, so it really does depend. And that’s what makes brokers so handy. 😉 They can recommend a suitable level of cover based on your own individual circumstances.

 

However, we do have one guiding question for you:

Should you go with a bank, a broker, or straight to the source?

Life is short, so let’s fire through this one. The sole advantage of going with a bank is that you get to meet with an actual, living breathing, hard-selling human instead of doing it at your own pace online. If this puts you at ease, then you should immediately stop reading and hit the bank as we are 100% online and phone based. You’ll only see me in videos 🙂

However, as nice as it is to have a a face to face with someone, you may be about to get ripped off by that sharp suit.

You see Irish banks can only sell insurance from one company so they’re a no-go for impartial advice or bagging a deal. Banks also have no underwriting safety net so if a bank says no, that’s it from them, in other words, avoid the banks if you have any pre-existing health issues.

Going direct to an insurer puts you in a similar place, because you’re limited to the Life Insurance products that the insurer offers e.g Aviva only sell Aviva products, Irish Life only sell Irish Life products.

Tips for getting Life Insurance in your forties

A couple more tips for you if you’re still not convinced:

  • Don’t get the amount of cover that you think you should get. Instead, budget for what you can actually afford. Your maths might suggest you need a policy in excess of €1m but there’s no point taking this is it’s unaffordable. You’ll just end up cancelling it. Head over here to determine how much life cover you really need.
  • Consider the term you’ll need. Generally, this ties in with the age of your youngest child so don’t go an buy whole of life or 40 year cover when 25 year cover will do just fine. Your kids only need protection until they can stand on their own two feet (financially, not physically)
  • Don’t disregard reducing life insurance as a way to protect your family. It costs less than level term life insurance so you can buy more of it initially. This works because you need more cover now when you have more years to retirement / more future income to replace.

To recap: shop around; get it sorted asap; if you have a family, you need Life Insurance. If you don’t have income protection through work, well you need income protection too.

Capiche?

Over to you…

If you’re stuck for time and you want to get cover with the least amount of hassle, please complete my financial questionnaire and I’ll be right back with a personalised recommendation.

Prefer a quick chat first, I’m on 05793 20836.

Still on the fence? Why not check out our free Guide to Life Insurance cover in the meantime.

It goes without saying that everything we discuss will be in strict confidence… but I’ll say it anyway, just to be sure, like.

By the way, this is what you should have done in your 30s…I hope you’re not back here in your 50s looking for help 🙂

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