What is life insurance?
The most straight forward type of life insurance pays out a chosen amount of money if the person insured dies. Cover is often taken out to provide for loved ones or to pay off a mortgage in the event of death. Mortgage Protection is also a form of Life Insurance. Although that only protects you bank not you!
Do I need life insurance?
It really depends on your circumstances. An average single person with no dependants probably would only need to cover funeral costs. The main earners in a family with children definitely does ! need Life Insurance It’s not a nice subject but imagine how your loved ones would cope financially if you weren’t around.
How much cover do I need?
Our most common question by far. The answer is that it depends entirely on your circumstances. A couple purchasing their first property together on a tight budget might want a policy just to pay off the mortgage if one of them were to die. Another couple with a larger mortgage and perhaps two children may want to provide cover to pay off the mortgage, cover the costs involved in raising children and provide for their surviving spouse/partner.
I’m A Homemaker. Can I still get life insurance?
Yes absolutely. You can take out life insurance without any restrictions even if you’re not working outside of the home. If you were applying for a particularly large amount of cover an insurer might ask the reason behind the level of cover. This applies whether you’re working or not.
Why are your premiums lower than other comparison websites?
Life insurance companies pay commissions to the broker/comparison site. We reduce our commission and pass the savings onto you.
Can’t I get a cheaper premium by applying directly with the provider?
If you apply directly with a provider they will not sacrifice any of the commission. Strange as it may seem this is often the most expensive way to buy life insurance.
Are your policies the same as those purchased directly from the provider?
Yes exactly the same. In fact policies are the same whether purchased direct or from an independent broker like us.
When will my policy start?
This depends on the details you give us when you apply. If your application is accepted immediately you can start your policy straight away or at any time in the next 30 days. If an insurer requires more information about a medical condition they may write to your GP and this can cause a delay. GP’s can take anything from one week to months to reply to an insurance company’s request. Any requests of this nature are carried out at no expense to you. With one of our companies we have you on full cover for 28 days while awaiting information from you or your GP. Terms and condition do apply.
Can I put my policy in trust? What does this mean?
Yes you can put any life insurance policy in trust at no additional cost. To find out more about this valuable option please give us a call 01 6853818.
What happens if my application is declined or my premium is increased?
Sometimes an application cannot be accepted at standard terms by the insurer. This can be due to many factors including health or lifestyle reasons. We will offer to apply with another insurer if we think it is unreasonable.
What happens if I stop paying my premiums?
If you do not pay your premiums the policy will lapse and you will not be covered. If you accidently cancel your direct debit or change your bank account your cover won’t be cancelled immediately. You will be contacted for your new bank details and your policy will remain in place for 30 days approx.
Can I increase my cover or change the term of a policy after it has started?
Really depends on the policy you have. In some cases you cannot make changes to a policy once it has started. Some insurers let you increase your cover after a specific event. For example if you moved to a new house with a larger mortgage they might be able to take this into account and increase your cover. If you want to make a change to your policy and you’re not sure if you can please contact us.
Do you give advice?
Yes we are an independent whole of market insurance broker. We don’t do hard sells, no pushy sales people, just fair and honest advice tailored to your circumstances.
Tax rules for life insurance claims
Under current tax rules, pay-outs for critical illness, terminal illness and death claims are usually free of personal liability to pay income tax and capital gains tax. However, in some circumstances your pay-out may be subject to inheritance tax. There are ways to avoid this please give us a call to discuss further. Bear in mind that the law relating to tax may change in the future.
Low Cost Life Cover is an independent broker with agencies with all the major insurers Zurich, Royal London Ireland, Irish Life, Aviva and New Ireland. It is our job to provide you with the best independent advice that is the most suitable for your needs. I would be happy to discuss your individual needs if you have any questions give me a call 01 6853818, I’m from Donegal I love to talk!