One of the most important investments you can make for your family and yourself is life insurance. In the event of unforeseen events like death, disability, or serious illness, it offers financial security and peace of mind. Despite its importance, many people still hesitate to purchase life insurance due to some misconceptions about the cost and necessity.
We understand purchasing life insurance can be complicated and confusing due to the various types of life insurance policies available in Ireland. That’s why we are ready to give you the best advice, find you the lowest price, and make sure you have the right protection to safeguard you and your family.
What are the benefits of having life insurance?
Life insurance is an essential aspect of financial planning for anybody, as it helps ensure financial stability for loved ones in case of unforeseen circumstances. While nobody likes to think about the possibility of their own death or serious illness, having life insurance can provide many benefits to you and your loved ones.
Your Family’s Financial Security
The main goal of buying a life insurance policy is to ensure your family’s financial stability in the event of your unexpected death. Life Insurance pays out a lump sum to your beneficiaries so that your family can continue without your income. This lump sum can be used to pay funeral expenses, pay off the mortgage, help pay for your children’s education, or even keep your family’s lifestyle.
Peace of Mind
Your passing might put your loved ones in a vulnerable financial situation without your income. Life insurance can provide you with peace of mind, knowing that your loved ones will be financially secure if the worst occurs to you.
You can add Serious illness cover as an additional benefit to most life insurance policies or buy a standalone policy. It pays out a tax-free, cash lump sum if you are diagnosed with a life-threatening illness such as cancer, heart attack, or stroke.
Protecting Your Business
If you’re a business owner with business partners or others who depend on your business income, life insurance for all owners or partners of a business could pay off business debts and keep the business going during a transition period.
Tax-Free
All payouts from life insurance are tax-free which can help your beneficiaries avoid any potential tax liabilities.
While the life insurance payment itself is tax-free, some beneficiaries may have to pay inheritance tax depending on their relationship with you. For example, there is no tax liability between married couples/civil partners. On the other hand, cohabiting couples with dual or single policies would have to pay inheritance tax as they would be seen as “strangers” in the eyes of Revenue.
We can tailor a policy for cohabiting couples that is not subject to inheritance tax. Contact one of our Qualified Financial Advisors and we are more than happy to help you make an informed decision and have peace of mind.
How much life insurance cover do I need?
It’s important to ensure you have the correct cover amount in mind to help plan for your family’s financial security. Determining how much life insurance you need depends on a number of factors, including your income, your family’s financial needs, and your personal situation. There are three ways to do this:
1) To know if the cover is enough, as a rule of thumb, you can multiply your income by ten and you are going to find the right level of life insurance coverage.
2) This life cover calculator provided by Zurich is designed to provide an estimate of the amount of additional life cover which you might require. Remember it’s only to be used as a guideline.
3) To calculate how much life insurance cover, take into consideration your debts and how much money your family would need to live if you passed away.
Here are some general guidelines that might help you find the amount of life insurance cover that is right for you.
Calculate your current outgoings
Add up all of your current expenses, including those for housing, food, utilities, transportation, and other necessities.
Take into account future costs
Think about future costs like your children’s schooling, your retirement planning objectives, or a new baby’s arrival.
Consider your long-term debts
Consider any long-term unpaid debts you might have, like a mortgage or car loan.
Think about your family’s financial needs
Analyse the financial needs of your dependents, including their living expenses and any future financial goals they may have. You might be planning to pay for your children’s college education or if maybe you already have a Children’s Financial Plan in place. In both cases, you need to take into consideration if there will be enough funds after your passing.
Take into consideration any existing life insurance cover
If you already have life insurance coverage, consider it when determining how much additional coverage you might need. For instance, if you have a life insurance policy through work you might need to purchase additional life protection from another life insurance provider or if your employer doesn’t offer Serious Illness Protection with your plan, you could consider a standalone Serious Illness Protection policy.
Consider savings and assets
By taking into account your savings and assets, you can get a better sense of how much life insurance coverage you need to ensure that your loved ones are financially secure in the event of your untimely passing. You can establish a balance between your life insurance cover and your existing financial resources.
To sum up, you may find the amount of life insurance cover you need:
The sum of money needed to pay off your debts (regular bills, long-term and future debts) + your income – (existing life cover + savings + liquid assets)
You can have a better understanding of your financial situation by getting a financial plan with LowQuotes and we can give you recommendations about the appropriate level of protection and the type of life insurance or other types of insurance that would be most beneficial for you.
Not forgetting you also receive a monthly budget planner to help you with managing your finances when you book a financial plan with LowQuotes.
How much is term life insurance in Ireland?
The cost of life insurance will depend on multiple factors, such as age, lifestyle, or the sum insured. With a tiny proportion of your income, you can put a financial protection plan in place to ensure you and your family would have the money needed in the case of premature death.
We provide a straightforward Life Insurance Calculator so you can compare several life insurance providers and determine the cost of your premium based on your personal details, such as age, policy term, etc.
Life insurance Cost in Ireland
Cover Amount: €250,000
Term: 25 years
Applicant: Non-smoker
Age: 30 years old
January 2023
|
Provider |
Life Insurance Premium |
|
Zurich Life |
€14.65 per month |
|
Royal London |
€15.15 per month |
|
Irish Life |
€17.23 per month |
|
Aviva |
€17.25 per month |
|
New Ireland |
€18.80 per month |
Why use the LowQuotes life insurance calculator?
Our life insurance calculator is straightforward to use, you only need to add your personal details, and you will get a quote in 60 seconds. You can get a life insurance quote to cover only yourself or you can choose joint life insurance.
Fill in some quick details such as how much cover you require and the term of the policy and you’ll receive a quote comparing the prices of the best life insurance providers in Ireland.
If you wish to combine Serious Illness with your life insurance the best way to determine the cost of it is by speaking with us. We can help you understand your options and find a policy that is right for you and your budget.
Get a quote today with LowQuotes
No matter what your doubt is about life insurance, we are here to help you find the best cover to protect you and your family.
By purchasing your life insurance with LowQuotes you will get the lowest price online because we provide discounts that aren’t even available to other brokers.
We offer up to a 30% discount and you can get a Free ‘Will Kit’ worth €120, and €50 Cashback on policies over €30 p/m.
If you want to purchase other types of insurance like Mortgage Protection, Income Protection, Multiclaim Protection cover, Cancer Only cover, Whole of Life Insurance, or Over 50s Life Insurance, contact us and we guarantee the cheapest price available on the Irish market.
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