AIB’s Simple Guide to Life Insurance
06 May 2015
Posted in: Insure my life
Life insurance plans (also known as protection plans) can help protect your family financially if something happened to you. Figuring out what you are hoping to protect, will help you choose which plan you might ultimately need. AIB Insurance brings you our guide to the different types of life insurance that are available.
Term Life Insurance
This is the most popular plan for life cover. It pays your family a lump sum if you die within a certain period of time, which you choose (usually 20 years). It does not cover you for your whole life and this is why it’s cheaper than life long insurance.
Provides you with life insurance for your whole life. As long as you make your regular payments, this type of cover will pay your family a lump sum when you die. You can use it to protect your family from having to pay inheritance tax when you die, and you can also use it to provide cover to pay for funeral expenses. Lifelong insurance is usually the most expensive type of life insurance.
Pension Life Insurance
This is life insurance you start before you retire. It covers you for a certain amount of time, which you decide. It pays your family a lump sum if you die during the term of the plan. The advantage of pension life insurance over other life insurance plans is that it costs less because you can claim income tax relief on your payments. This is a type of life insurance you can organise as part of your personal retirement or pension plan.
Mortgage Life Insurance
This type of life insurance only pays off your mortgage if you die. You start the plan when your mortgage does and your cover reduces each month as the amount you owe on your mortgage reduces. Mortgage life insurance will only pay off your mortgage if you die – it will not provide any other benefits.
Specified Illness Cover
This may also be referred to as critical illness or serious illness cover. This type of cover pays you a lump sum if you suffer one of the illnesses covered on your particular plan. You can spend the lump sum however you like, to maintain your standard of living or help you cope during a difficult time.
Income Protection Insurance
Income protection provides you with a replacement income if you cannot work as a result of an illness or injury after a period of time. You can start income insurance if you are in full-time work or are self-employed and earn an income. Income protection will not be paid if you become unemployed.
To get an idea of how much cover you might need and how much it might cost, talk to your AIB Financial Advisor today. For more information about Life Insurance from AIB and Online Life Insurance, visit our website today.
Life Insurance products are provided by Irish Life Assurance plc. Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc for life and pensions business.