What Is Covered With Life Insurance?

Life Insurance can be looked at as a protective measure you take, to ensure your family is financially secure, for when you pass away and can't provide for them any longer.

Life can be unpredictable, but you can have peace of mind if you plan smartly and get the right life cover.

Do I need life insurance?

Life Insurance isn't a legal requirement in Ireland. Rather, it's a safety net for your loved ones.

You may want to consider life insurance if you are going through big life changes like getting married, starting a family, or buying a home. This will help you in:

• Covering your debts, including mortgage.
• Providing an income for your loved ones.
• Providing a nest egg for your family.
• Making sure your children have money for their education.
• Providing money to pay for the funeral and other final expenses.

What is covered with life insurance?

It is important to understand what your life insurance cover includes, to have peace of mind. Usually, your life insurance coverage varies depending on the specifics of your particular circumstances.

Each policy has a different cover. Here are factors that are common across all life insurance policies in Ireland:

Other things typically excluded from life insurance

In case you pass away, your life insurance will typically not cover:

• Medical conditions that weren't declared earlier.
• Partaking in dangerous activities that pose a risk to your life.
• Suicide or self-harm within a specified time of the policy start date.

To fully understand the coverage that Life Insurance policies provide, you must know about the factors that impact the Life Insurance policy.

Life insurance and Critical illnesses

Critical illness is different from life insurance. For this, you need to take out a critical illness policy alongside your life insurance policy (or on its own).

It can act as financial aid in case you are diagnosed with a serious illness during the term of your policy.

So, if your illness prevents you from working, a critical illness policy can cover you financially. This will be either through a fixed amount paid in a lump sum or monthly.

Also, to get an extra layer of protection, you can consider getting Terminal Illness coverage.

How to choose the right insurance cover for you?

Everyone has different needs, based on their circumstances. Broadly, there are three types of life insurance covers to choose from:

1. Term life insurance
2. Whole life insurance
3. Decreasing Term / Mortgage Protection life insurance

It is important to have clarity in what you need to cover, in the case of your death, and choose the right policy accordingly. It is also recommended to discuss these details with an adviser.

Some tips to keep in mind when deciding which type of life insurance to get:

• Evaluate the amount of insurance needed - This is the amount of financial support your family will need to sustain themselves after you are gone.
• Ask about broader issues - this includes coverage for disabilities, dependants, and even bills.

Ensure you make informed decisions by acquainting yourself with the top tips on how to get cheaper life insurance in Ireland.