 Life Insurance:
What is Life Insurance?
Life insurance is a simple product designed to provide a lump sum payment on death. Its main purpose is to provide your dependents with financial security on your death and ensure that they are not left with a major shortfall in income. It can also be used to protect personal loans, business loans and mortgages so that these are paid off on your death and not passed on to your estate.
Who needs Life Insurance?
If you or your spouse/ partner depend on each other’s income to pay bills, loans and daily living expenses. In other words if something happened to you or your partner would this have an impact on your financial situation. It is also important to note that even if your spouse or partner is not working you may also incur additional costs in the event of their death eg. childcare costs if they usually look after the children or you may need some help around the house. If you have a mortgage on your home your bank will insist that you have cover in place (generally referred to as mortgage protection). It is not essential for investment properties but it is highly recommended.
Ask yourself:
- How would your spouse/partner/dependents cope if you were to die tomorrow/next week/ next month? – have you cover in place?
- Have you any loans that are not covered by a life policy?
- Is your business sufficiently covered for loans/ death of a business partner/ loss of a key employee?
- Are you paying too much for your existing life insurance policies?
- When did you last review your life insurance?
What are the benefits of Life Insurance?
Your dependents will not be left with excessive debts or struggle financially as a result of your death. In the case of investment properties if the loan is covered this is one less thing for them to worry about. If it is not do they have the experience managing these? What if they needed to sell them? Is the property value enough to cover the loans?
What type of life cover do I need?
There are many different types of life cover and we can advise you on which is best to suit your needs.
- Life Cover can be used to protect your dependants or family if you were to die while they are still financially dependent on your salary.
- Life cover will ensure the financial survival of your business in the event of the death of a director or key employee. This is usually referred to as Company Directors Insurance or Keyman Insurance in the case of a key employee.
- Whole of Life Cover can provide family protection as long as you and your dependants need it.
- Serious Illness Cover ( also known as criticial illness insurance or specified illness insurance)will provide you with a lump sum payment on the diagnosis and certification of a prescribed serious illness.
- Life Insurance is necessary for anyone buying a house. This is usually referred to as Mortgage Protection. It is used to clear your mortgage should you die during its term. You can also add serious illness insurance or critical illness insurance cover to this type of life cover and hence if you contract a serious illness your mortgage will be cleared, giving you and your family financial peace of mind.
Is life insurance and term insurance/ term assurance the same thing?
While there is a difference between life insurance and life assurance the terms are generally used interchangably nowadays. Life Insurance is generally for a specific period of time maybe 20 years, 30 years etc.
Term assurance is generally open ended or whole of life insurance and usually has an investment element to it. Life insurance is cheaper than life assurance as if there are no claims during the term the policy expires. With life assurance once the policy is maintained and the premium paid up to date it will last for life.
How do I take out a life insurance or term insurance policy?
- Call Heritage Insurance Brokers on 01-6911017 to discuss your life insurance/ term insurance needs and to book an appointment.
- Drop us an e-mail at: lifeinsurance@heritageinsurancebrokers.ie and we will get right back to you as soon as possible or at a time that suits you.
- Complete your details on our "life insurance / term insurance quote" page and one of our finacial advisers will contact you to discuss your financial needs and book an appointment at a time that suits you.
|
