Hello Pinsters, I am purchasing a property and deciding between A) life policy standard and B) life term policy (and potentially serious illness cover on top of one of these). Would you know difference between these as well as strengths and weaknesses of each type? I understand these products are almost the same across all insurance providers but would be interested in knowing why I should go for A and not B or vice versa. Also would you recommend using serious illness cover on top of one of these? Thank you.
any ideas on these?
Types of cover:-
Whole of Life, designed to run for life but can be expensive.
Convertible Term Assurance, will run for a period of time decided at the outset and you have the option to extend the term of cover without providing medical evidence before the term of the initial policy ends. Less expensive than whole of life normally.
Level Term Assurance, gives cover for a period of time then ends.
Mortgage protection or also known as decreasing term assurance, level of cover reduces at the same pace as your mortgage and normally finishes when your mortgage does. Cheapest of the lot.
I cannot give advice outside of that as I have a vested interest other than shop around different brokers for quotes, I would not advise you to take this out with a bank you are getting a mortgage with as they are unlikely to be cheapest for it. Also illness cover is expensive and covers a set list so if you are taking it out and get seriously ill it may not cover you. I believe the cheapest mortgage protection may be had from Caledonian life as they are discounting it by 10% of the lowest premium in the market for a monthly premium for a few more weeks.
I recently changed my life assurance provider as I wanted to extend my cover after the birth of another child and I hadn’t chosen a convertable option because it was more expensive.
I used LA brokers, (last time I used the banks adviser) and I found him very helpful and good value. I tried going direct to my insurance provier Irish Life but they couldn’t match him and I think I’m now with Caledonian Life.
I went for term assurance with no options and no serious illness cover but I don’t have a mortgage and I have some other cover from my employment. My priority is to see my kids through college if they want to go, after that I don’t need to provide them with inheritance cash. Think about what the money would be used for in the event of your death and who will need it. Although rates differ between the providers you get what you pay for and more cover is more expensive.
This information is from my very limited experience but I don’t have any vested interests.
I think this is the thing -what are your priorities - would you prefer say 300k for whole life - it might be devalued by inflation - your spouse may predecease you - or would you prefer say 600k term to see a couple of kids through childhood and college.
123.ie refunded half of the first year’s term - though the option was slightly more expensive that other providers (it is New Ireland AFAIK)
I understand brokers/agents get about the first years’ premium - hence the “If you’re not churning you ain’t earning” (Irish Life had a bit of a scandal years ago with this; make sure the commission isn’t coming out of your end if you switch)