Life Insurance FAQs?
Straight forward answers to popular questions
What is life insurance?
The most straight forward type of life insurance pays out a chosen amount of money if the person insured dies. Cover is often taken out to provide for loved ones or to pay off a mortgage in the event of death.
What type of life insurance do I need?
If you are looking to provide for your family after your death, a level term life policy is the type of cover you need. You can decide the size of the lump sum you wish to leave them with to ensure they are taken care of for several years.
On the other hand, if you simply want to ensure your mortgage is paid off, perhaps if you don’t have a partner or children, a decreasing term policy will be more suitable.
Do I need life insurance?
It really depends on your circumstances. An average single person with no dependents probably doesn’t. The main earner in a family with children definitely does! It’s not a nice subject but imagine how your loved ones would cope financially if you weren’t around.
What do the different types of life insurance cover?
There are two main kinds of life insurance, each covering different things. Level term life insurance is a popular choice. With this type of insurance, a lump sum, agreed at the start of the policy, will be paid out upon the death of the policyholder .The other major type of life insurance you might wish to consider is decreasing term life insurance, which is also sometimes called mortgage insurance. If you have a mortgage life insurance policy, the amount paid out reduces over time, in accordance to the amount left to pay on the mortgage.
How do I get a life insurance quote?
It is easy to get a quote for a new life insurance policy online. You can get a fast quote on our website just by answering a few simple questions. You will need to think about the length and value of your policy, too. If you are struggling with this, our team can help you find the best policy for you and your family, so don’t hesitate to contact us over the phone.
How much cover do I need?
Our most common question by far. The answer is that it depends entirely on your circumstances. A couple purchasing their first property together might only want a policy just to pay off the mortgage if one of them were to die. Another couple with a larger mortgage and perhaps two children may want to provide cover to pay off the mortgage, cover the costs involved in raising children and provide for their surviving spouse/partner.
How much will it cost?
Price will vary depending on a number of factors including your age, your smoking status, the amount of cover you want and length of time you want it in place, your health, your job and maybe even your hobbies. The price we quote is a standard rate quote and only takes into account your age, smoking status, amount of cover your require and the length of time you want the cover in place for.
The vast majority of applicants with no health issues will receive a standard rate price after the underwriting process is completed. Should you fall outside this category, we will always issue you with an acceptance terms letter for you to sign which will quote the amended premium. You can decide at that point to accept or decline the premium on offer.
I’m not at work. Can I still get life insurance?
Yes absolutely. You can still take out life insurance without any restrictions even if you’re not at work. If you were applying for a particularly large amount of cover an insurer might ask the reason behind the level of cover. This applies whether you’re working or not.
Do you provide comparison quotations from all the available life insurance companies?
Yes, we will source the cheapest market premium and add any available discounts the life insurance companies have on offer. We compare quotes from the five main provider in the Irish market, namely Royal London, Zurich Life, Aviva, Irish Life and New Ireland.
Is purchasing a policy through Lifebroker the same as those purchased directly from the provider?
Yes exactly the same. In fact policies are the same whether purchased direct, from a financial adviser or from the bank.
When will my policy start?
This depends on the details you give us when you apply. If your application is accepted immediately you can start your policy straight away or at any time within in the following 6 months, longer than that and you may have to completed some updated paperwork. If an insurer requires more information about a medical condition they may write to your GP and this can cause a delay. GP’s can take an average of two weeks to reply to an insurance company’s request but maybe longer depending on the individual GP. Any requests of this nature are carried out at no expense to you.
Can I put my policy in trust? What does this mean?
Yes, you can put any life insurance policy in trust at no additional cost. Setting a policy up under trust also ensures that the money goes directly to your nominated beneficiaries and won’t form part of your estate when you die – which means your family won’t have to suffer delays waiting for Probate. The main disadvantage is that you won’t be able to use the policy as security against any future loans.
I have (or have had) health issues – can I still get Life Cover?
We have an excellent understanding of all health issues. We regularly help to arrange cover for people with past or current health issues and use our knowledge to search the market and speak to the insurers’ underwriters to ensure that you get the best deal.
If I get an illness will my premiums change?
No. Once your policy has started you don’t need to tell the insurer if your health or lifestyle changes. The insurer will assess the risk you pose at the point of application. After the policy has started, any changes to your health or lifestyle thereafter don’t impact your cover.
If your health improves (e.g. you stop smoking or a condition becomes less severe) then it is worth getting in touch to see if we can save you money with a new policy. The same applies if you were to cease doing certain hazardous activities that caused the premium to be slightly higher in the first place.
What happens if my application is declined or my premium is increased?
Sometimes an application cannot be accepted on standard terms by the insurer. This can be due to many factors including health or lifestyle reasons.
What happens if I stop paying my premiums?
If you do not pay your premiums the policy will lapse and you will not be covered. If you accidently cancel your direct debit or change your bank account your cover won’t be cancelled immediately. You will need to complete a new direct debit mandate and your policy will remain in place.
Can I increase my cover or change the term of a policy after it has started?
In most cases you cannot make changes to a policy once it has started. Some insurers let you increase your cover after a specific event. For example, if you moved to a new house with a larger mortgage they might be able to take this into account and increase your cover. If you want to make a change to your policy and you’re not sure if you can please contact us.
Do I get my money back if I don’t die within the policy term?
No. For the period you are insured you continue to pay a relatively low premium in relation to the amount of cover provided. If you haven’t needed to claim then this is ideal – you’ve had peace of mind the entire time and you’ve not passed away prematurely.
It’s no different to car insurance – which won’t pay out if you don’t have an accident.
Can I cancel my policy if I no longer need it?
Yes. Although it is worth considering that should you need to re-apply for cover at a later date, the same cover is likely to cost more as you will be older. Also, insurers will reassess your Health & Lifestyle at the time, which means you could be charged more if your health has deteriorated, or worst case – may not be able to get any cover at all. The insurer won’t charge you any cancellation fees.
