What is life insurance?
Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.
How does life insurance works in Ireland?
Life Insurance is a financial contract that protects an individual’s dependents in the case of his or her death. The insurance company promises a death benefit in consideration of the payment of premium by the insured.
There are several life insurance channels available to better serve the different needs of the population – including whole life, term life, universal life and variable universal life (VUL) policies. It is recommended to re-evaluate life insurance needs annually, or after significant life events like marriage, divorce, the birth or adoption of a child and major purchases, like a house.
It is essential for applicants to analyze their financial situation and determine the standard of living needed for their surviving dependents before purchasing a life insurance policy.
There are three major components of a life insurance policy:
Death benefit is the amount of money the insurance company guarantees to the beneficiaries identified in the policy upon the death of the insured. The insured will choose their desired death benefit amount based on estimated future needs of surviving heirs. The insurance company will determine whether there is an insurable interest and if the insured qualifies for the coverage based on the company's underwriting requirements.
Premium payments are set using actuarially based statistics. The insurer will determine the cost of insurance (COI), or the amount required to cover mortality costs, administrative fees and other policy maintenance fees. Other factors that influence the premium are the insured’s age, medical history, occupational hazards and personal risk propensity. The insurer will remain obligated to pay the death benefit if premiums are submitted as required. With term policies, the premium amount includes the cost of insurance (COI). For permanent or universal policies, the premium amount consists of the COI and a cash value amount.
Cash value of permanent or universal life insurance is a component which serves two purposes. It is a savings account, which can be used by the policyholder, during the life of the insured, with cash accumulated on a tax-deferred basis. Some policies may have restrictions on withdrawals depending on the use of the money withdrawn. The second purpose of the cash value is to offset the rising cost or to provide insurance as the insured ages.
How do I get the cheapest Life insurance in Ireland?
Finding an affordable life insurance policy that meets your financial needs can be hard - take a little time and effort - but it's an investment that should pay solid returns over time. Not only do you have a ton of options to choose from, you also have to consider a number of factors besides price before signing any agreement.
See below some tips to help you to get low-cost life insurance:
Shopping: If choice of provider is important to you, make sure you look carefully at the provider networks for each life insurance plan you're considering. Log on to InsuranceDeals.ie to find out which companies offer life insurance and what are the available plan options. Make a list of five or ten top-rated insurance companies, contact all of them, and get your life insurance rates. Compare the costs of each plan- and not just the premium prices. To truly find cheap life insurance you need to consider all costs associated with the purchase. Remember – the best policy is not necessarily the cheapest one. So, choose a policy that covers your needs and suits your budget at the same time.
Timing: Buy life insurance when you are young, preferably in your 20’s. It is the best way to get the cheapest rates possible. Bear in mind that the longer you wait, the higher are your chances of developing a health problem, which could affect your insurability and cause your policy costs to go up.
Payment: Choose annual premium payments. It is easier for you, as you can just pay once and carry on with life without thinking about it for a whole year. Moreover, some insurance companies offer discounts on annual premium payments, so you might be able to save some money as well.
Riders - additional features added to a policy: Avoid unnecessary riders and additional benefits. Choose a rider only if it adds more value to your policy and if you are certain that the increase in cost is worth the extra protection and benefits it offers.
Stop smoking: While this is a difficult decision to make - withdrawal effects notwithstanding -, quitting smoking is one of the easiest ways to lower the price of your life insurance. Stay healthy: Taking care of your health is another way to reduce the price of your life insurance. Eat healthy and exercise regularly. Insurance rates can increase if the policyholder are overweight, even if he/she does not have any health problems.
No to drugs: Do not drink and drive and do not do drugs, as it can put you in the ‘high risk’ category, which can cause your insurance rates to go up.
Respect the laws: Do not do anything that could leave you with a prison record. In addition to affecting your social status, it also makes getting insurance harder.
To find out which companies have the best package options Log on to InsuranceDeals.ie. We gather information on all insurers -and insurance products – available in the market – and will show you the life Insurance options available in your county along with the premiums. We have also partnered with leading insurance providers in Ireland. So get the best travel insurance policies and save money by changing today!
Do I need Life insurance in Ireland?
Yes. Objectively speaking you need insurance if you want to protect someone financially in the event of your death. It can be useful, especially for parents of young children and those who support a spouse or a disabled adult or child. In addition to helping to support dependents, life insurance can help provide immediate cash at death.
What are the Life Insurance Providers in Ireland?
The Life Insurance Providers in Ireland are:
- Royal London
- Friends First
- Irish Life
- New Ireland
- Zurich Life
- Acorn Life
What is the best life insurance provider in Ireland?
There's no best Insurance company. The best company for one person may not be the best for another, as we have different needs to protect. The best life insurer is one that meets your specific demands regarding cover, benefits, service, underwriting, claims - add ons - and price.
In other words, the best company is one that in addition to the basic guarantees, offers you the option to include additional services and covers and fulfills the role of providing financial protection (refund) and assistence for you in the event of a claim.
What is the best life insurance package in Ireland?
There's no universally best life insurance package. However a good way to find the right deal for you is to serch our website - InsuranceDeals.ie - and check out what cover, services and facilities are available to you. Make sure you’re happy, that the plan meets your requirements, then sign up.
Log on to InsuranceDeals.ie to find out which companies have the best package options. We gathers information on all insurers -and insurance products – available in the market. We have also partnered with leading insurance providers in Ireland. So get the best travel insurance policies and save money by changing today!
Does life insurance go up every year?
Yes. And the factor that determines this increase in premium price is your age. The older you are, the more risk you pose to the insurer and the more you'll pay for cover each year. So if you’re thinking about buying life insurance, the best time to do it is right now — unless you’re older, sick, or have no dependents or people who rely on you financially. But if you’re young and at least a little healthy, there’s a very good reason to buy life insurance now rather than later: you’ll pay significantly less money for the same coverage. Other factors that influence the premium are the insured’s medical history, occupational hazards and personal risk propensity.
How do I claim life insurance?
If you are the beneficiary on a recently deceased person's life insurance policy, you need to file a claim for the death benefit. Here are some steps to take to this:
- Get the policy details - verify where the deceased's life insurance policy is located.
- Check for other policies - even if the deceased never mentioned them, there may be other insurance policies in place.
- Contact the agent - notify the insurance company
- Obtain copies of the death certificate - death certificate is the standard form of documentation required when filing a state life insurance claim. The funeral director can help you obtain certified copies of the death certificate.
- Request claim forms - complete the forms and gather all the information that the insurance company requests.
- Choose how your proceeds will be paid - Ther are several payment options available to you, such as lump sum, which may be a good option if you need to pay immediate expenses; life income option, which aims to stretch payments over your remaining lifespan. Some policies also have an interest income option where the company holds the proceeds and pays you interest, allowing the death benefit to remain intact. Upon your death, it will go to a second beneficiary of your choice.
- Submit the completed forms - send back the completed paperwork and include a certified copy of the death certificate. It is advisable that you return the forms and death certificate via certified mail or with a return receipt requested so you can track them.
Why should I have life insurance?
Because life insurance protects your family and other people who may depend on you for financial support - pays a death benefit to the beneficiary of the life insurance policy. There are instances where life insurance can be beneficial even if you have no dependents, the most basic of which would be covering your own funeral expenses. There may be many other reasons too. This is because over the years, this insurance product has also evolved to provide options for building wealth or tax-free investments.
How can I get free life insurance?
The Irish insurance market is operated by the private sector. Therefore, to get life Insurance you need to purchase a policy and pay the premium. All types of businesses are based on the principle of mutuality – in short, in exchange for you paying a premium, your insurance company agrees to cover your losses – and in the case of life Insurance specifically, indemnify/compensate the beneficiaries of the policy.