Protection Insurance

Term Assurance

This is the most popular form of life cover. It pays your family a lump sum if you die within a certain period of time, which you can choose. It doesn’t cover you for whole of life, which is why it’s cheaper than whole of life cover. Typically with these types of policies, the premium is fixed at the outset and is not subject to future increases (unless availing of a conversion option).

Serious Illness Cover

This is also known as critical illness or specified illness cover. This type of cover pays you a lump sum if you suffer one of the illnesses covered on your particular plan. You can spend the lump sum however you like, to maintain your standard of living, to pay a capital balance off your mortgage or just to help you cope during a difficult time.

Source: Irish Life Annual Claim Statistics.

Mortgage Protection

This is a basic form of life policy, which covers the outstanding balance of your mortgage. The policy is taken out for the term and amount of your mortgage, and your cover reduces each month in line with your reducing mortgage balance. This policy is limited to the amount covered, it does not pay any other benefits.

Income Protection

Unlike other types of life cover, which typically pay out lump sums, an income protection policy pays you a regular monthly income if you are unable to work because of an accident or an illness. The monthly income normally starts after a “deferred” period of your choosing, typically either 13, 26 or 52 weeks. The main advantage of income protection is that it pays you a regular income for as long as it takes you to get back on your feet. Another significant advantage is that the premiums under this type of policy qualify for tax relief.