News & Updates

Term Life Cover v Whole of Life Cover

Date Posted: 20.02.2019

 

 

 

 

Term Life vs Whole of Life

Term Life
Term Life insures you for a certain term, e.g. 20 years. By choosing a 20-year term policy and you’re covered for 20 years . If you were to pass away during your term, the policy pays out. If you outlive your term, there’s no pay-out.


You are basically putting a bet between you and the insurer.If you die during the term of 20 years, you/spouse is paid out the sum assured you selected. If you don’t die the insurance company wins!


TIP: Take out conversion option with your policy so that you’ll have the opportunity to extend your cover at any time without having to submit any medical information. Without a conversion, any future health issues may prevent you getting cover when you’re older at an affordable price. Adding conversion to your plan costs very little extra.


Whole of Life
There are two types of Whole of Life:
Reviewable. ( Not recommended !!)
Guaranteeded.
Reviewable Life cover is a policy that gives your insurer the opportunity to review your policy every 10 years until you are 60. At these reviews you will expect price increases and plenty of phone calls of giving out to Joe Duffy!
Guaranteed, on the other hand, covers your whole life, but without the worry of unexpected price increases. It’s more expensive than Term cover, but it’s also guaranteed for life so this could be option for some clients. This type of cover is also used as Inheritance Tax Cover.


Categories

General Updates
  • Cleere Life shortlisted for the LPI Award - Best Broker in Leinster 2018 read »
  • ***KILKENNY BUISNESS CHAMBER AWARDS FINALIST*** read »
  • WHOLE OF LIFE POLICIES- PROS AND CONS read »
  • Investment approach for the anxious read »
  • Ireland remains fastest-growing economy in Europe read »
  • The Week gone by - 14th Sept 2015 read »
  • The Week Ahead - 22nd June read »
  • The Week Ahead - May 5th read »
Pensions
  • Pension Tax Relief- Use it or lose it! read »
  • PENSIONS- 7 TIPS ON HOW TO GET THE RIGHT PENSION! read »
  • Men planning badly face a pension shock in old age read »
  • 900,000 Irish workers have no pension for their old age read »
Life Cover
  • Zurich Life Claims Paid in 2018 read »
  • Term Life Cover v Whole of Life Cover read »
  • Our best ever protection offer is here! read »
  • Discounts Galore!! read »
  • Discounts Available! read »
  • 10% Discount on Mortgage Protection Policies read »
  • Four golden rules when taking out life cover read »
Savings & Investments
  • Deposit Rates Fall read »
  • Investment Considerations for Volatile Markets read »
  • Does it make sense to save when interest rates are so low? read »