What would you do to protect your family?
Life Insurance isn’t about your life, it’s about the people who rely on your life. It’s about security for your family and knowing that if something should happen to you, your family are protected. Life Insurance can seem very complicated but it is actually quite simple. Our team of Financial Advisors do all the work for you and can give you a Life Insurance quote over the phone or in our offices.
What do you want the cover for?
Because the bank is making you have it? You want to make sure your family are protected? You want to protect your family and have a guaranteed investment?
Mortgage Protection/Decreasing Term Assurance
The term ‘Mortgage Protection’ is often referred to as life insurance however it really only insures the balance left on your mortgage. Prior to issuing your mortgage your bank will insist on you having a life insurance policy that is linked to your loan, so that in the event of your death your loan will still be cleared. The cheapest Mortgage Protection is “decreasing term.”
You select an initial sum to be insured over a set term for a fixed monthly premium. The sum insured decreases each year in line with your loan until the end of the term, at the end of which the insurance cover ceases. If you die outside the term agreed you receive nothing.
Why choose Decreasing Term Insurance?
A bank will insist on mortgage protection prior to granting a loan and this is the cheapest option. In effect it really only offers protection for your bank. If you died your mortgage would be cleared but there would be no additional funds for your family.
Level Term Assurance
The client selects the sum to be insured over an agreed term for a fixed monthly/annual premium. The sum insured remains the same throughout the agreed term at the end of which all insurance cover ceases. If you die a year into the term or 25 years into the term the sum paid out remains the same. If you die outside the term agreed you get nothing.
Why choose Level Term Insurance?
This satisfies the lenders requirements for protection on your loan. As the sum paid out does not decrease in value with the loan, there may be some additional funds for your family after the mortgage has been cleared. E.G if your sum insured today was €250k(the value of your loan) and you died in 25 years time the policy will still pay out €250k.(That is if your term was 25 years plus) The bank will take the balance needed to clear the mortgage and the rest is left for your family.
Convertible Term Assurance
You select an initial sum to be insured over an agreed term. The sum insured and type of policy is convertible within conditions set out in the policy by the assurance company. If you wish during the term you can amend the term and cover provided on the basis of your ‘health status’ as defined by the assurance company at the time the policy was taken out. The premium you pay will be adjusted in line with the changes in your policy, based on your original ‘health status’.
Why choose Convertible Term?
This type of insurance allows you to change your life insurance as your life changes to allow for a growth in your family etc For many people it is an effective way insuring that the cost and / or availability of future life cover does not rise / or is un-available as a result of an unexpected health problem in future years. If you die after the term agreed you get nothing.
Whole of Life Assurance
You select the sum to be insured for a fixed monthly/annual premium. The sum insured is is not specific to a term it lasts throughout your life and you can build up an ‘investment’. So long as the policy has an investment value or you continue paying the premiums, which can increase or decrease over the years, the cover remains in force. Providing the policy remains in force up to your death it will pay out the agreed death benefit and any ‘investment’ value remaining to your beneficiaries.
Why choose Whole of Life Cover?
This is the only type of insurance that is not dependant on a term. There is no cut off point. No matter how long you live you are guaranteed to receive a benefit. Is it more expensive than the term products, but if you outlive a term product you receive no benefit after paying into the policy for decades.
Who’s life do you want to insure?
Just yours? You and your Partners? Who should your policy cover?
Single life – you are insuring one life only.
Joint Life – you are insuring all lives named on the policy, but the policy will only pay out on one of the insured parties named in the policy, the first person eligible to claim under the terms of the policy.
Dual life – you are insuring all lives named on the policy, and the policy will pay out on all of the insured parties named in the policy, even after it has paid a claim on another insured party named in the policy.
How long do you want the cover for?
For the next 35 years until your mortgage is cleared? Until you die? Until your children are self sufficient?
How much money do you want to leave behind?
Enough to clear your mortgage? Enough to put your kids through school? Enough to leave a lump sum for your kids?
How much do you want to pay?
You can pay your life insurance monthly or annually. You need to decide how much you are willing /can afford to pay to ensure your family are looked after should something happen to you.
We’re here to help you answer these questions and to tailor a policy to suit you and your families needs.
To talk to one our qualified Financial Advisors call us on 0818 222 700.