Term Assurance is one of the cheapest forms of life cover that can be acquired in Ireland. The sum assured under the policy is only paid out if death occurs within a specified term. If the life assured survives until the end of the term, the policy will expire and nothing will be payable. This cover can be ‘level’ or ‘convertible’, meaning it will cease at the end of the term OR can be ‘converted’ to a similar policy at the end of the term, without medical underwriting. This type of cover can be single or jointly owned.
Mortgage Protection is a life cover policy designed to pay off the outstanding balance on a mortgage, during the term of the policy, on death of the policy holder(s). This is a ‘decreasing’ form of cover meaning it reduces down relatively in line with the decreasing mortgage, as the years go on. Banks normally require a Mortgage Protection plan to be in place before allowing you to draw down a mortgage.
Income protection cover provides you with a tax relievable way to protect your family and your finances against the loss of income if you are out of work due to injury or illness. It allows you to protect your income up to a certain revenue limit and this replacement taxable income will be paid out after a certain period of time (known as a deferred period) has passed. It will not be paid if you become unemployed or made redundant.
Specified Serious Illness
Unlike the regular income that is paid with an Income Protection policy, a Specified Serious Illness policy is paid out as a lump sum, on diagnosis of one of the defined illnesses listed in your policy. It is a one time, tax free payment.
Pension Term Assurance
Similar to regular Term Assurance, Pension Term Assurance is a life cover lump sum which is paid out on death, before the end of the initial term set down at inception. This type of cover is only given on a ‘single life’ basis but it can be personally owned or taken out as a life assurance policy through a company – this is known as Executive Term Assurance. There is tax relief available on premiums paid. This type of cover normally runs until the same date as retirement. It can also be taken out as a ‘level’ or ‘convertible’ policy.
Individual / Family Protection
Most people assume that once they have Mortgage Protection plan in place, they have provided adequate financial security for their family in the event of an early death. However the household is now short one income to provide all of the other financial necessities that will arise in the years to come, especially if a death arrives at an early age. Taking out additional life cover in the form of Term Assurance or Pension Term assurance gives families the financial reassurance they will need now and in the years ahead.
- Investment Bonds
- Savings Plans
- Alternative Investments
- Tracker Bonds
- Kick Out Bonds
- Exchange-Traded Fund (ETFs)
- Lump sum investment options Eg. Solar, Biogas, Biomass, Wind
- Regular premium savings plans
- Direct property or global property funds
- Early maturity option tracker bonds
Business protection refers to a type of cover put in place to protect the business itself or its assets against any unforeseen events such as death or illness. A business protection plan includes:
- Keyperson Insurance – Protecting your company against the loss of key members of staff
- Co-Director Insurance – In the event of the death of one of the directors, Co-Director Insurance policies allow the surviving directors to purchase the deceased’s shares from their family / next of kin.
- Partnership Insurance – This type of insurance gives security to business partners. It allows the remaining partner to purchase the deceased partners share of the business from their family / next of kin.
- Group Risk cover – Normally provided by companies, this cover is similar to a group of individual Term Assurance plans and is provided to employees to compensate them, or their families, in the event of injury / death.