What is life assurance and why do people get it?

All forms of life assurance available in the Irish market have one single purpose – to pay out a lump sum of money on the death of the person that is covered.

There are a variety of reasons why people take out life assurance cover, with the most common being to cover a mortgage debt on their family home. In Ireland, you must have life assurance to cover any debt secured against your family home. There are a couple of exceptions to this, but more often that not, you will have to take out a ‘Mortgage Protection’ policy when you get a mortgage. This policy have very specific terms – The amount of cover will be whatever amount you are borrowing and the term of the policy will be whatever the length of your mortgage is – For instance, €425,000 over 30 years. Whatever amount is outstanding on the mortgage on the death of a person covered by the policy when they die, is what is paid out. Nothing more, nothing less.

People will also take out life assurance cover to make sure that money would be available to their family if they were to die during their working years. If a household relies on someone’s income to survive financially, then they need to make sure that this money would still be available if they were to die prematurely or while they were earning an income, so the expected income would be replaced. There are a number of ways to provide for this solution – A level term policy, a convertible term policy, a pension term assurance policy or a whole of life policy, among others. These policies each provide the same function, but with different optional benefits, tax allowances or terms.

Lots of additional benefits are available to be added on to your life assurance policy, but every single one of them cost more money every month. Whilst alot of the additional benefits are very useful, not all of them are worth taking.

There are a number of life assurance companies in Ireland that offer these products, but each of them have their own additional benefits or restrictions and they certainly have different prices. For instance, a 40 year old male looking for €750,000 over life cover for 25 years can pay €84.93 per month with company A or €131.15 per month with company B – these prices are for identical policies and benefits. Why would someone pay nearly 55% more every month?! Over the term of the policy, they would pay €13,866 more with company B. If this person were self-employed, they could get this cover for €50.11 per month. The only difference between €50.11 per month and €131.15 per month is good advice.

Why would someone pay nearly 55% more every month?

During a conversation with a Med Protect advisor, we determine how much cover you need, what type and for how long. We then structure the policies in the most cost effective way, ensuring that you have the right amount of cover at the best possible price. We deal with every major life assurance company in Ireland and we know the terms and conditions and any hidden small print of every product. This allows us to offer you accurate, independent advice.

Even if you have existing cover in place already, contact a Med Protect advisor today on 01 668 6136. We know we can save you time, money and hassle when organising your life assurance. As we do this for medical professionals only, we are familiar with your industry and what benefits it already offers you. This is bespoke, tailored advice.