Life Insurance or Term Insurance?
Let's explore why & what you should know about both Whole Life Insurance & Term Life Insurance. There are reasons why you might pick one over the other but as always it depends on the individual.
Term Life Insurance
Is Term Life Insurance for you?
As you can tell by the name, Term Life Insurance is an insurance policy which protects over a specific period of time agreed upon within your policy. This “period of time” is usually set up in the years you feel your family are most dependent on you for obvious reasons.
A Term Life Insurance in Ireland is a life insurance plan which is put in place to protect your family from the financial burden that can come with becoming ill or an unexpected death. Protecting your children from this is something you should consider if you haven’t already had a Life insurance term plan set up.
Peace of Mind.
Term Life Insurance can be set up to cover the main working years of your life which is when most people will have children who financially depend on them, you can have great peace of mind that your family will be provided for financially.
What way do I make payments for Term Insurance?
Term Life Insurance is a premium that you pay a set amount (usually by direct debit) on a regular basis for a period of time between 2 & 40 years. If you die or become ill within the “term” your policy covers, your Term Life policy will pay out & the dependents you have set it up to protect are cared for financially.
Can I add cover onto my Term Life policy?
Within your Term Life Insurance policy you can ADD cover for your partner within the same policy, add cover for many serious illnesses & disabilities & increase the cover when you have a new child
Point also to note, you need to be aged between 18 & 75 to take out Term Life Insurance. You need to be between 18 & 65 for serious illness. Term Life Insurance ONLY covers for a specific chosen period of time set up within the Term Life Policy.
Whole Life Insurance explained without the jargon.
Whole of Life Insurance as you have probably already guessed is an insurance plan that lasts a person for the whole of their life. It is NOT just for a specific term. Therefore when a person who has Whole of Life Insurance dies, the policy will provide their family a lump sum payment. The “lump sum payment” may be used to cover funeral expenses etc.
One major benefit of Whole Life Insurance.
One of the major benefits of having Whole Life Insurance is that it can provide a tax efficient inheritance planning for your family. Most importantly, this can then prevent their inheritance been effected by a big tax bill. The person can then get a lot more value out of the assets you have decided to pass on to them when you die. Depending on the individual circumstances this can make a huge difference financially.
The main benefits from Whole Life Cover Insurance is your loved ones receive a lump sum payment which can help with the financial burden of funeral expenses etc.
Protecting your family from inheritance tax which your family may be liable to pay out when you die. This makes Life Insurance a very efficient way of protecting your assets from “inheritance tax”. Some inheritance tax bills can be very large & some families may have to borrow money to pay the tax bill. This can be very stressful within a family even though they now have an asset.
Whole Life Insurance -The first step you take.
The first step when taking out Whole Life Insurance is to determine what actual cover you really need. This can vary hugely & depends on many different circumstances which also change over the years including who is dependent on you at different stages of your life.
Whole Life Insurance premium payments
Once the level of cover is established you will then pay a monthly premium (usually by direct debit). This is usually on a regular basis & your premium never increases. Whole Life Insurance cover can be taken out by anyone between the ages of 45 & 74 years old.
Still not sure & would like some help?
You may still feel you are not sure of how much life cover you need. How much it will cost you each month & who will your Whole Life Insurance protect when you’re gone. If so, please feel free to contact us. One of our Whole Life Insurance expert brokers will be glad to help explain without all the “jargon” which confuses many when looking at setting up Whole Life Insurance.
How you can get paid.
OPTION A
Monthly guaranteed cover from the time you die until the end of the policy term which is known as Monthly Income Cover.
OPTION B
Your dependents receive a once off payment should you die during the term set out on your Term Life Insurance policy (Level Term Cover). This is a once off payment. It can & is usually used for such as college fees for older children in the family, childcare for smaller children. Medical bills which may build up can also be paid. These bills can otherwise cause financial stress & burden on the family.
This type of stuff drives me nuts!
As like with many insurance policies, you may find the whole lot over whelming to consider & put in place, don’t worry that’s where we can help you understand which is best for you & your individual needs.
We know this stuff so contact us if you need help.
Please feel free to contact us & arrange for one of our Term Life Insurance advisors to help you with what you need help with no matter how big or small you may feel that concern is to you.
As they say, knowledge is power. Therefore we have the knowledge which we can share with you to make the best decision for you & your family. We look forward to your call & being there for you when you need us.
We understand that there is a lot of information you need to consider & we believe in knowledge is power when it comes to choosing the right policy for you & your family.
If you feel you have more questions you need answering, why not check out our Life Insurance FAQ'S or contact us today.
If you feel you have more questions you need answering, why not check out our Life Insurance FAQ'S or contact us today.
