One of the most discouraging parts of life insurance is understanding exactly what it is and whether it would be beneficial for you to obtain a policy. Often, people are discouraged by confusion or information overload when it comes to this topic and therefore they end up giving up. If you are experiencing similar feelings towards this issue, don’t worry, we have a list of commonly asked questions below that will start you off in the right direction.
How Does Life Insurance Work?
One of the most commonly asked questions regarding life insurance in Ireland is – how does it work? The purpose of any life insurance policy is to pay out a lump sum amount to the beneficiaries of the policy holder should they pass away. This is to guarantee loved ones are not left any financial burden should you pass away. Pay outs can also cover the cost of funeral expenses or unpaid medical bills. Having a policy allows those covered to rest assured knowing that their family are financially protected should they not be around anymore to provide for them.
What Does It Cover?
It is important to be aware that life insurance only covers the life insured if they pass away. Therefore, it is advisable to consider income protection or serious illness protection insurance which have to be taken out in separate policies for any unexpected illness diagnoses or injury which may interfere with working ability resulting in not be able to financially provide for loved ones.
What if I Already Have a Policy Through My Employer?
Having insurance through an employer means being secure for the time being. The reality is, if employment ends with that company, so will the policy. Even if the best plan imaginable is offered, it is not guaranteed to last.
How Does the Application Process Work?
When applying for a policy, applicants will undergo an assessment by the life company once the application has been submitted and received. The assessment process will involve a representative of the insurance company evaluating the applicant based on their overall health, any pre-existing conditions, age and smoker status. After the assessment by the life company on the clients application they will make a decision on whether the candidate will be accepted for the policy or not. The type of insurance policy and the amount that will have to be pay will vary based on assessment results.
Do I need Life Insurance?
People often wonder, do I actually need a life insurance policy? The answer is it depends on your individual circumstances, however, it is recommended especially for those who have children or dependants. Family providers or single parents should also consider purchasing life insurance. Policy holders can feel secure knowing that their loved ones will be taken care of financially after they are gone. It is also a way of leaving family inheritance behind.
The possibility of us not being around are things we do not like to speak about. However, it is important to have affairs in order which includes having a life insurance policy. In the case of the unfortunate happening, your family will be covered for any debts and everyday life expenses to the amount of cover on the life policy.
What is the Best Policy?
When it comes to life insurance in Ireland, those seeking a plan can choose between term coverage and whole life coverage. It is important to understand the difference between the two before purchasing a policy. Whole insurance, if payments are continued to be paid on time, will ensure lifelong financial security for the insured and their family.
Term insurance in Ireland will only provide coverage for a specific amount of time, in most cases ranging from 10 to 30 years up to a maximum age. Once term cover has expired it is renewable but be mindful that it will not continue to provide coverage unless renewed.
A lot of people opt for term coverage because it is easier to be accepted for and often more affordable, however, whole life coverage can offer more benefits. To find the perfect policy, visit the life insurance quotes page.
Is Life Insurance Taxable?
A common question regarding this topic is whether or not the lump sum payment received is taxable. The short answer is no as it paid out as a tax free payment by the life company but depending on your relationship with the deceased you could be liable to Tax. The last thing people want after spending years paying into a policy is for it to be taxed.
Can I Cancel My Policy?
It is possible to cancel a policy, however, be mindful before making any rash decisions because having no cover can be risky. One of the main reasons people tend to cancel their policies is due to financial struggles resulting in missed payments. If this occurs, speak with an insurance provider and seek out alternative options such as less amount of cover at a lower cost.
It is vital to understand the facts of life insurance and learn questions that are important to ask when shopping for a policy. To find out more information, please visit our life insurance learn more page.