Have you had the talk?
No, not the one about the birds and the bees.
The talk….with the bank.
The talk…where they corner you in a dimly lit room and put the squeeze on until you say “no more” and sign up for the whatever policy they’re hustling.
If you haven’t had the talk yet, count yourself lucky you found this page.
If you have survived the talk without signing up, then you, my friend, are a legend. ?
But, don’t worry if you did crumble – you have a cooling-off period of 30 days where you can cancel and get your money back. And even after the 30 days, you can cancel at any time and switch to a better policy.
Before we dive in, it’s disclaimer time:
We cannot sell you the One Plan from Irish Life. It’s strictly available to
So which banks would that be, you may ask, well c’mere till I tell you.
Take a look at the results when you Google “irish life one plan protection“.
It’s a rogues gallery of all the banks in Ireland (bar Bank of Ireland who is tied to New Ireland/Bank of Ireland Life so can only sell their products)
So chances are, if you’re getting a mortgage in Ireland, you’re going to have sit through The Talk.
Before you do, let’s review the One Life plan from Irish Life.
Ah look, I may have laid it on a bit heavy there – not like me ?.
The Irish Life One Plan has one thing going for it:
If you couldn’t give one shite about getting advice on all the products in the market, don’t want the best cover to protect you and your family, but would love to have one single payment to cover all your insurances then you might as well stop reading.
You have totally zinged with Irish Life.
Go, run, get married and have lots of little Irish Life babies…but keep an eye out for their secret handshake.
Irish Life is the only insurer who bundles all the cover into one plan.
Ahhhh, so that’s why it’s called the One Plan. I honestly didn’t get that until now. ?
This makes it harder to compare the One Life plan to other policies in the market.
Anyway, because no other provider bundles all the cover, it’s impossible to compare like with like.
So if you show me your One Plan quote and ask for a better quote, that’s impossible, there is no comparable plan on the market.
WAKE UP OTHER PROVIDERS, THERE IS OPPORTUNITY HERE FOR YOU!
They never listen.
OK, the not being able to exactly compare like with like is a PITA but it doesn’t make it an evil plan.
But this does:
When you assign the policy to your bank – an unavoidable step if you want the mortgage moolah- the bank becomes the owner of your policy.
Yep, you pay the premiums, but the bank will receive the proceeds of any payout as you can see in the Terms and Conditions (if you look closely, but who does that right?)
Here’s the relevant section:
I don’t know about you, but I certainly don’t want my bank getting first dibs on a policy that contains my mortgage protection, life insurance, serious illness cover and income protection.
The mortgage protection part is grand, as I said you can’t avoid your bank getting the payout on this but to freely give the rest over? You’ve got to be kidding me.
Let’s travel into the future:
You contract a serious illness (don’t worry, you make a full recovery as you pay for the best surgery) and need the serious illness payout to pay for said life-saving surgery. No problem, your insurer sends the claim cheque to you.
But what if you had assigned your policy to the bank? Well, in that case, the cheque would go to the bank to pay off your mortgage. You wouldn’t have any say as legally, the bank is the beneficial owner of your policy.
Keep life insurance, serious illness cover and income protection separate as personal protection so the bank cannot get their grubby hands on it.
Bill pay is a type of protection available on the One Plan.
I guess during The Talk, it’s sold as income protection because frequently people tell me they have income protection on their One Plan.
Let’s look at the main difference:
The average income protection claim lasts for 7 years!
The maximum payout available on bill pay is €2000 per month, so if you’re a higher earner, you’re going to experience a significant drop in income. With proper income protection, you can insure up to €21,875 per month – for all you Zuckerbergs out there.
Finally, and most importantly, you can get full tax relief on income protection premiums which will reduce the cost by 40% if you’re a higher taxpayer.
Let’s say you buy a mortgage protection policy of €300,000, and you both die in a freak ballooning accident.
A joint policy would pay out €300,000, but a dual policy would payout on each of you for a total of €600,000.
Dual life cover is the same price as joint life mortgage protection, so it’s a no-brainer.
Irish Life only offers communal life mortgage protection on the One Plan.
This here is the biggie so I’ll shout it.
NO SINGLE LIFE INSURANCE PROVIDER IS THE BEST AT EVERYTHING
So, if you want the best cover, you should buy from different providers.
All else being equal, no health issues, etc., we recommend:
Income Protection from Aviva | How to compare income protection providers
Life Insurance from Zurich Life | How to compare life insurance providers
Mortgage Protection from Zurich Life | How to compare mortgage protection providers
Serious Illness Cover from New Ireland | How to compare serious illness providers
But if you just buy the One Plan, you’re missing out on a lot.
Further reading from the Irish Times: Alternative home loan protection options could save you cash
So, to recap:
If you don’t care about choice and love convenience – fire ahead with your bank.
Everyone else, speak to a life insurance specialist who can advise you on all of the insurers.
If you don’t have know one, I’d love to help.
Complete this questionnaire, and I’ll be back over email with a no-obligation recommendation.
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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!