Simple guide to life insurance
This is a general guide to life insurance.
1. What is life insurance ?
Putting a life insurance plan in force means that your family/dependents could get a lump sum or a regular income if you die.
Life insurance gives you the peace of mind in knowing that in the event of untimely death, your life insurance plan could help lighten the financial burden to your family/dependents.
2. How much will it cost ?
We can secure life insurance for as little as €10.00 per month from leading providers.
The amount you pay will depend upon your age, health and whether you smoke, amount of cover you want, how long you need the life cover for & type of life cover you need.
e.g. EUR 100,000 of level life cover over a 15 year term for person aged 40, will be approximately € 15.44 per month. (assuming standard medial rates, non smoker and no conversion option)
3. How much do you need ?
We recommend you have enough life insurance to maintain your families standard of living, pay off mortgage and loans and have adequate provision for your childrens longer term costs - such as education.
4. Understanding the different options
a) Term Life Insurance - this is the most popular and cheapest form, It pays a lump sum if you die within a certain time period (term normally in years)
b) Mortgage Life Insurance - normally linked to your mortgage, the amount of cover reduces each month as your capital and interest mortgage reduces.
NB If you have an interest only mortgage you will be advised to have a Term Life Insurance contract.
c) Whole of Life Insurance - Usually the most expensive type of life insurance. Provides you with life insurance for the whole of your life, provided you maintain the payments and these may increase every 10 years. Typically used for Inheritance Tax planning.
d) Pension Term Life Insurance - Costs less because eligible to tax relief. It covers you for specific amount of time and pays estate a lump sum if you die during the term. It cannot be assigned.
e) Specified Serious Illness Cover - pays a lump sum if you suffer one of the predefined illnesses covered by your plan, meet the medical definition and survive for c.14 days after diagnosis.
NOTE : Illnesses and definitions vary across providers.
5. NEED ADVICE ?
We recommend that you search for trusted financial advice when it comes to something as important as protecting your family.
Nelson Life has access to all leading providers. We understand the options available.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
RETIREMENT & PENSIONS | INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE
Nelson Life Limited trading as Nelson Life is regulated by the Central Bank of Ireland.
WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.