What is life cover and do I need it?


The above is a question many of us, I’m sure, have asked ourselves at some stage in the past. Some of us have put it to the back of our minds and others among us will have actively sought out some level of life insurance.


Life cover in its simplest form is a type of insurance that will pay out the sum insured if you die. One of the most common reasons a person would take out a life assurance policy is as collateral on a home loan or mortgage as most lenders will have this as a requirement. In this case, most of us will look for the most straightforward and cheapest level of cover available as it’s just another box to tick on the way to becoming a homeowner!


However, there are other reasons why life cover may not only be a good idea but is essential for a particular person. If you have dependants and you are concerned about their financial wellbeing in the untimely event of your death, then life cover is probably the most affordable method of ensuring they are looked after. For example, a non-smoker due to turn 30 on their next birthday could get insurance for €135,000 for a 25 year period for only €10 per month.


The main factors which affect the cost of life cover are:

  • Your age
  • Whether you are a smoker or not
  • Your health status
  • The amount of cover
  • The term


Usually, the younger you take it out, the cheaper it will be. There are also different types of insurance (for example, you could have serious illness cover) and extra benefits that can be added to your policy. It is definitely worth shopping around and seeing what’s out there before signing up to anything as different life companies charge different premiums for what is often essentially the same thing.


If you’d like more information or have any questions, feel free to drop me a line.


Gerard Ward

10th January 2017