The type of life insurance cover that you need depends on your personal circumstances and what you want from your cover. Here are some of the key types you should consider:
A mortgage protection policy is designed to clear the remaining balance of your mortgage in the event of your death. Mortgage protection is essential from the moment you purchase your home until your mortgage is fully paid.
Many people think that they are obliged to take out the policy that their mortgage provider offers them. However, as with any other policy, you are free to shop around to find the best cover for you.
A life insurance policy provides peace of mind for you and security for your family. It works for a defined time frame and if you die during that term, it pays a lump sum to your estate.
Without a Life Insurance policy, your loved ones may face great financial difficulty if something happened to you and you weren’t there to provide for them financially. Mortgage payments, day-to-day living expenses, credit card bills, etc. would still have to be met by those you leave behind.
A life insurance policy ensures that your loved ones are protected. It is usually taken out for a period of 20-25 years or until your dependants have completed full-time education.
A specified illness policy (often referred to as serious illness cover or critical illness cover) pays a lump sum if you are diagnosed with a specified illness that is covered on the policy, for example a heart attack or cancer.
Unlike life insurance or mortgage protection, which provide financial benefits to your estate, a specified illness policy takes care of you and provides you with essential financial support to help you pay for medical bills, travel to and from hospital, extra childcare and so on. It enables you to focus on your recovery instead of your finances.
Section 72 insurance is a Revenue-approved, life insurance policy to cover inheritance tax. As the proceeds of this policy are tax-free, it is commonly used by parents to avoid an inheritance tax bill for their children. This policy must be taken out by the person leaving the inheritance behind and premiums must also be paid by that person.
If you take out a mortgage protection policy, the balance of your mortgage will determine the level of cover you need and the duration of your policy. This also means that the level of cover that you need will consistently reduce over time.
With a life insurance policy, the lever of cover that you take out is up to you and is determined by your intended purpose for the policy. For example, it depends on whether you would like your cover to simply repay any outstanding debts or loans that you have; or if you would like to provide your loved ones with a regular income to cover their everyday financial needs for a specific amount of time in the future.
The cost of your life insurance will be based on the ‘level of risk’ that you pose for the insurer. This will be determined by several factors such as your medical status and history, your age or your smoking status (if you are a smoker, then your policy cost will be automatically higher than that of a non-smoker).
If you haven’t reviewed your existing cover since you first took it out, then there is no better time than now to review your life insurance needs.
There are significant, big life events that require a life cover change, such as getting married, buying a new home or having a child. Other variations in your personal circumstances, or even your lifestyle, can also mean that you should review your life insurance needs, for instance if:
Reviewing your cover is easy with Cornmarket. In one quick phone call, we can compare all insurers to get you the best cover for your needs, for the best price available. We offer a unique Pricematch Guarantee, which ensures that you enjoy the lowest possible price on the policies that we quote.
To review your cover today, call us on (01) 420 6782 or click here to request a call back.
How do I claim?
In the event of a claim, please call our dedicated Claims Team on (01) 470 8086