Life Assurance

Approximately 29,000 people die in Ireland each year yet two-thirds of them have no life cover and the other third have insufficient cover.

Providing financial security for your family in the event of your death should be of critical concern but the choice of life assurance products is bewildering.

Financial advice on the level of cover required and the benefits that eventually accrue are among the services offered by ADVANCE Financial Services

Types of cover:

Policies can be arranged on:

  • a single life basis, i.e. insuring the life of one person
  • a joint life basis, i.e. insuring the names of the persons on the policy which will only pay out in the event of one death
  • a dual life basis, which will pay out on the first death and also on the death of the second life on the same policy.

Policy Types:

There are many different types of life assurance products available in the market place, so it is important that to discuss specific requirements with a professional advisor to ensure that the cover put in place is the most suitable to individual needs.

ADVANCE Financial Services will advise on the level of cover required, the correct product and the length of time for which the cover is required. Quotations can be provided from any or all of the companies with whom ADVANCE Financial Services holds agencies.

The options include:

Level Term Assurance

Level Term Assurance provides cover for a specific time frame, usually at a fixed monthly cost. Some policies allow cover to be indexed-linked which means that cover will increase annually by usually 5%.

At the end of the term, the policy must cease and there are no further benefits. There is no surrender value with this type of product.

Convertible Term Assurance

A Convertible Term assurance policy to age 65 is similar to a level term plan in that the cover is chosen for a specific term, there is usually a fixed monthly payment and some can be indexed-linked to allow an annual increase in the level of cover.

Where it differs is that it allows further cover to be put in place without evidence of health, anytime up to the final day of the existing policy. This effectively gives the option of taking out another life assurance policy with no reference to health at that time. This cover costs approximately 10% more than the level term policy but it is worth paying this small extra for this valuable option.

Whole of Life Policy

A Whole of Life policy can provide cover to last throughout your life and there is usually a surrender value building up within the policy. Some contracts are reviewed after ten years and periodically thereafter to ensure that there is a sufficient premium being paid to maintain cover until the next scheduled review. Cover generally increases at each review.

There is also an option of purchasing a whole of life contract where there is no built-in review mechanism. This would allow the policyholder to have a sum insured in place for their future at today's prices. Whole of life cover is generally more expensive than the other covers outlined.