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Understanding Life Insurance

Life insurance plans are designed to protect your family financially if something happened to you. But sometimes knowing what type of life insurance you need can be hard to figure out. Often the type of cover you need depends on your individual circumstances.

Almost 1 in 10 people in Ireland live by themselves

Living the Single Life: You may think because you have no children that you don’t need life insurance but what might happen to your standard of living if you were unable to work due to an injury or serious illness.

The average number of children per family in Ireland is 1.4

1.4 Children: This is the most common time that people think about life insurance – when they have children. How would your family cope financially if you were to suffer from a serious illness or die?

There are almost 340,000 stay at home parents in Ireland

Stay at Home Parents: It is estimated that the value of a stay at home parent’s contribution to the home is about €50,000 a year (Source: Coyne Research for Irish Life 2014). This is mainly made up of childcare but also covers costs such as maintaining a house and transport. People often assume just the parent who works needs life insurance but it’s really important to consider the big financial contribution of a stay at home parent.

Almost 1 in 4 children in Ireland live in a single parent household

Single Parents: Life Insurance can be even more important as a single parent as you’re the only person who is financially responsible for your children. It’s important to think about how your financial support will be replaced if you became seriously ill, were unable to work or die.

There are 185,000 Small to Medium Enterprises (SME's) in Ireland

Business Owners: You’ve worked hard to build up your business so it is important to consider what would happen to that business if you were to die or were unable to work due to illness or injury

There are over 450,000 people retired in Ireland

Retired: Although your children may no longer be your responsibility and any debts you have may be paid off, you may still need life insurance to help your family or beneficiaries pay inheritance tax if leaving them an inheritance and to help pay funeral costs.

Protection solutions

Income Protection

Income protection is an insurance plan whereby you agree to make a monthly payment to an Insurance Company in return for a regular monthly income if you cannot work as a result of an illness or injury after a certain period of time. Benefits paid are less any State benefits or other income protection plans. You can take out income protection if you are in full-time work or are self-employed and earn an income. It protects you only in these circumstances – it will not be paid if you become unemployed. The cost of the policy depends on your age, Income, health, occupation and the benefits you choose. Payments on your plan are eligible for tax relief at your marginal rate of tax.

Protection

The purpose of Protection Cover is to provide a lump sum payment in the event of death and/or the earlier diagnosis of a specified illness, as defined in the policy. The benefit payable depends on the protection option you have selected. All Protection Cover policies are regular premium contracts. For all protection policies (except Guaranteed Whole of Life), you select a term at the outset and pay premiums over the term of the contract. Cover is provided for the full term. We offer products such as Level Term Assurance, Convertible Term Assurance, Whole of Life Cover and Mortgage Protection.

Critical Illness Cover

Critical illness insurance is an insurance plan where you agree to make a monthly payment to an Insurance Company in return for a tax free lump free should you suffer from one of a number of critical illnesses specified within the plan you take. Protecting your family with life assurance is one of the most important financial decisions you can make. This will help to maintain their standard of living whilst you are unable to earn an income.

Life Cover

Life Cover is an insurance plan where you agree to make a monthly payment to an Insurance Company in return for a tax fee lump sum payment should you die. Protecting your family with life assurance is one of the most important financial decisions you can make. This will help to maintain their standard of living in your absence.

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