Life Insurance and Life Assurance Ireland

Financial protection for the people who depend on you

Life insurance can provide a lump sum to your family, dependants or another nominated beneficiary if you die during the term of the policy and the claim is valid.

The payment can help your family manage the financial consequences of losing your income or financial support.

At Dooley Insurance Group, we provide professional life insurance and life assurance advice for individuals, couples, families, company directors and business owners across Ireland.

We assess your income, debts, family circumstances and existing cover before explaining the life insurance options available through our agency appointments.

Arrange a Life Insurance Review

What is life insurance?

Life insurance is a policy that pays an agreed lump sum if the insured person dies during the policy term and the claim meets the policy conditions.

The money may be used by the recipient to:

• Replace lost household income
• Repay debts
• Support dependent children
• Cover education costs
• Pay household expenses
• Cover funeral costs
• Protect a spouse or partner
• Provide financial security
• Meet potential inheritance tax liabilities
• Support the continuation of a business

Life insurance does not remove the emotional effect of losing someone, but it can reduce the immediate financial pressure placed on the people left behind.

What is the difference between life insurance and life assurance?

The terms life insurance and life assurance are often used interchangeably, but they can describe different types of cover.

Life insurance will generally cover the insured person for a defined period. A claim is payable if the person dies during that term and the policy conditions are met.

Life assurance may refer to whole of life cover that remains in place for the insured person’s lifetime, provided premiums continue to be paid and all policy conditions are satisfied.

In everyday use, many people use both terms when referring to financial protection following death.

We will explain the actual policy term, benefit and conditions rather than relying only on the product name.

Who needs life insurance?

Life insurance may be appropriate if another person or business would experience financial difficulty following your death.

This can include:

• Parents with dependent children
• Married couples
• Cohabiting couples
• Homeowners
• People with personal debts
• Self employed professionals
• Company directors
• Business owners
• Shareholders
• People supporting elderly relatives
• Higher income earners
• People with potential inheritance tax liabilities

If nobody depends on your income and you have sufficient assets to cover your liabilities, your need for life cover may be lower.

The right level of cover should be based on the financial loss your death would create.

How much life insurance do I need?

There is no standard amount of life insurance that is right for everyone.

The appropriate level of cover depends on:

• Your income
• Your partner’s income
• Number and age of dependants
• Mortgage and personal debt
• Household expenditure
• Education and childcare costs
• Existing savings and investments
• Existing life insurance
• Workplace death benefits
• Pension death benefits
• Expected future financial commitments
• How long your family may need support

A life insurance assessment should examine both immediate liabilities and the longer term income your family may lose.

Simply choosing a round figure without considering these costs can result in being underinsured or paying for more cover than is required.

Family life insurance

Family life insurance is designed to provide financial support for your spouse, partner, children or other dependants following your death.

The payment could help your family:

• Maintain their home
• Meet regular household expenses
• Replace part of your income
• Pay for childcare
• Fund education
• Repay personal debts
• Manage funeral expenses
• Adjust to changed financial circumstances

When arranging family life insurance, we consider how much income would be lost and how long financial support may be required.

The need for cover may change as children become financially independent, debts reduce and savings increase.

Term life insurance

Term life insurance provides cover for an agreed number of years.

If the insured person dies during the policy term and the claim is valid, the policy pays the agreed benefit. If the term ends without a claim, the cover normally stops and no payment is made.

Term life insurance may be used for:

• Family protection
• Income replacement
• Debt protection
• Protecting children until adulthood
• Covering a period of financial dependency
• Business protection

The policy term should reflect how long the financial need is expected to continue.

For example, parents may want cover until their children are likely to become financially independent.

Level term life insurance

Level term life insurance maintains the same amount of cover throughout the policy term, subject to the policy conditions.

If you arrange €300,000 of level cover, the insured amount generally remains €300,000 unless the policy is amended or indexation applies.

Level cover may be suitable for:

• Family income protection
• Education costs
• Personal debts
• Providing a fixed lump sum
• Business protection

Inflation can reduce the future purchasing power of a fixed benefit, so indexation options may need to be considered.

Decreasing term life insurance

Decreasing term insurance provides a level of cover that reduces over the policy term.

This type of policy is commonly used for mortgage protection because the outstanding mortgage balance is also expected to reduce.

Decreasing term cover may cost less than equivalent level term cover, but the amount payable reduces over time.

It is generally less suitable where the primary objective is to replace family income or provide a fixed inheritance.

Whole of life assurance

Whole of life assurance is designed to remain in place for the insured person’s lifetime, provided premiums continue to be paid and the policy conditions are satisfied.

It may be used for:

• Funeral expenses
• Estate planning
• Providing an inheritance
• Paying potential inheritance tax liabilities
• Leaving money to family
• Providing a legacy
• Long term business protection

Whole of life policies can be more expensive than term insurance because a claim is expected to arise if the policy remains in force.

Some whole of life premiums are guaranteed, while others may be reviewed and increased. The premium structure should be understood before cover is arranged.

Single, joint and dual life insurance

Life insurance can be arranged on one person or two people.

Single life insurance

A single life policy covers one individual and pays a benefit following that person’s death during the policy term.

Two partners can each arrange separate single life policies.

Joint life insurance

A joint life policy covers two people but generally pays once, usually following the first death. The policy then ends.

Dual life insurance

A dual life policy covers two people and may provide a separate benefit following each death during the policy term.

This means that if one person dies and a valid claim is paid, cover may continue for the surviving insured person.

The appropriate structure depends on your family position, budget and the level of protection required for each person.

Life insurance for cohabiting couples

Cohabiting couples may not receive the same tax treatment as married couples or civil partners when life insurance benefits are paid.

Depending on policy ownership, premium payments and the person receiving the benefit, Capital Acquisitions Tax may need to be considered.

A life of another policy or another appropriate ownership structure may help address certain tax concerns, depending on the circumstances.

Cohabiting couples should obtain financial, legal and tax advice before deciding how a policy should be owned and who should receive the benefit.

Life insurance and trusts

A life insurance policy may be placed in trust in certain circumstances.

A trust can help identify who should receive the policy proceeds and may allow the payment to be managed more efficiently following a valid claim.

The suitability of a trust depends on:

• The purpose of the policy
• Intended beneficiaries
• Family circumstances
• Policy ownership
• Tax considerations
• Whether beneficiaries are children
• The need for control over the funds

Placing a policy in trust has legal consequences. Appropriate legal and tax advice may be required.

Life insurance for company directors

A company director may need both personal and business life insurance.

Personal cover can help protect the director’s family against the loss of income and financial support.

Business cover may be used to protect the company against the financial effect of the director’s death.

A director’s protection review may consider:

• Family life insurance
• Mortgage protection
• Personal debts
• Key person insurance
• Shareholder protection
• Business loans
• Personal guarantees
• Company succession
• Pension death benefits
• Existing employer cover

Personal and business policies should be structured separately according to the financial need being protected.

Life insurance for self employed people

A self employed person may not have access to the death in service benefits provided by some employers.

Their family may also depend directly on the income generated by the individual or business.

Life insurance for a self employed person should consider:

• Personal drawings or income
• Family expenditure
• Mortgage and debts
• Business loans
• Personal guarantees
• Business continuity
• Dependent children
• Pension benefits
• Existing savings
• The potential value of the business

The fact that a business has value does not guarantee that it can be sold quickly following the owner’s death.

Personal life insurance can provide more immediate financial support for the family.

Life insurance for business owners

The death of a business owner can affect family members, employees, customers, lenders and other shareholders.

Business life insurance may be used to address:

• The loss of a key individual
• Repayment of business debt
• Personal guarantees
• Shareholder succession
• Purchase of a deceased shareholder’s shares
• Loss of business revenue
• Recruitment and replacement costs
• Financial stability during a transition

Business owners may require separate key person insurance, shareholder protection or partnership insurance.

These policies should be based on the company structure, ownership agreements and financial effect of losing the insured person.

What affects the cost of life insurance?

Life insurance premiums can be influenced by:

• Age
• Health
• Medical history
• Smoking status
• Occupation
• Lifestyle
• Amount of cover
• Policy term
• Type of policy
• Additional benefits
• Family medical history
• Travel or residency
• Dangerous hobbies

The insurer may request medical information, a report from your doctor or additional medical examinations.

You should answer every application question fully and accurately. Incorrect or incomplete information could affect a future claim.

Life insurance medical underwriting

Medical underwriting is the process an insurer uses to assess an application for life cover.

The insurer may ask about:

• Current health
• Previous illnesses
• Medication
• Hospital treatment
• Family medical history
• Height and weight
• Smoking or nicotine use
• Alcohol consumption
• Occupation
• Sports and hobbies
• Travel
• Existing insurance

Following underwriting, the insurer may:

• Offer cover at the standard premium
• Offer cover at a higher premium
• Apply an exclusion where permitted
• Postpone a decision
• Decline the application
• Request additional medical information

Different insurers may assess the same medical information differently. This is one reason professional advice can be valuable before an application is submitted.

Life insurance with an existing medical condition

Having a medical condition does not automatically mean that life insurance is unavailable.

The outcome will depend on:

• The condition
• Severity
• Treatment
• Current symptoms
• Medical history
• Test results
• Recovery
• Insurer underwriting criteria

Cover may be available at a standard premium, an increased premium or with other terms.

It is important to provide accurate information and select an insurer whose underwriting approach may be appropriate for your circumstances.

Smoker and non smoker life insurance

Smoking and nicotine use can significantly affect the cost of life insurance.

Insurers may classify the use of cigarettes, cigars, vaping products, nicotine replacement products or other nicotine products as smoking.

To qualify for non smoker rates, insurers normally require an applicant to have stopped using nicotine for a specified period.

The exact definition varies between insurers and should be confirmed during the application.

Life insurance and specified illness cover

Specified illness cover can be added to or arranged alongside life insurance.

It pays a lump sum if you are diagnosed with an illness listed in the policy and meet the insurer’s medical definition.

Life insurance pays following death. Specified illness cover may pay while you are alive and dealing with a serious medical condition.

Adding specified illness cover will increase the cost and may affect the remaining life benefit, depending on the policy structure.

Reviewing existing life insurance

Life insurance should be reviewed when your family or financial circumstances change.

A review may be needed if you:

• Get married
• Begin living with a partner
• Have a child
• Buy a home
• Increase your mortgage
• Change employment
• Become self employed
• Start a company
• Become a company director
• Take on business debt
• Experience a significant income change
• Separate or divorce
• Approach the end of the policy term

An existing policy may still be suitable, or your level of cover may need to be adjusted.

Do not cancel an existing life insurance policy until replacement cover has been fully accepted and placed in force.

Our life insurance advice process

Understanding who depends on you

We discuss your family, income, mortgage, debts and other financial responsibilities.

Reviewing existing protection

We assess existing personal policies, mortgage protection, death in service benefits and pension death benefits.

Calculating the financial need

We estimate the lump sum or replacement income your family may need and how long that support may be required.

Comparing available options

We review suitable policies available through our agency appointments and explain the premiums, benefits and conditions.

Completing the application

We help you complete the application and provide the information requested during medical and financial underwriting.

Reviewing your cover

Life insurance should be reviewed as your income, family and financial commitments change.

Why choose Dooley Insurance Group?

Dooley Insurance Group has supported individuals, families and Irish businesses since 1957.

Our financial services team provides advice across life insurance, income protection, specified illness cover, mortgage protection, pensions and business protection.

We take the time to understand the financial need before discussing the policies available through our agency appointments.

Our financial services team includes Conor Swan, QFA, RPA and SIA, Director, and David Renwick, Senior Financial Consultant.

With offices in Naas, County Kildare and Edenderry, County Offaly, we provide life insurance advice to clients locally and throughout Ireland.

Life insurance questions

What is life insurance?

Life insurance is a policy that pays a lump sum if the insured person dies during the policy term and the claim meets the policy conditions.

How much life insurance do I need?

The amount depends on your income, debts, number of dependants, household costs, existing savings and how long financial support may be required.

What is the difference between life insurance and mortgage protection?

Life insurance provides a benefit for the intended recipient, while mortgage protection is generally designed to repay a reducing mortgage balance.

What is the difference between joint life and dual life cover?

Joint life cover generally pays once following the first death. Dual life cover may pay separately following each insured person’s death during the policy term.

Does life insurance cover every type of death?

Cover is subject to the policy terms, exclusions and information provided during the application. The policy documentation should be reviewed carefully.

Can I get life insurance with a medical condition?

It may be possible. The insurer will assess the condition, treatment, medical history and current health before deciding whether cover can be offered.

Is life insurance more expensive for smokers?

Smoking and nicotine use will generally increase life insurance premiums because of the additional health risk.

Do I need life insurance if I have death in service cover?

Death in service cover is linked to your employment and may end when you leave the employer. Your total family protection needs should still be assessed.

Can I have more than one life insurance policy?

Yes. You can hold more than one policy, subject to financial underwriting and the insurer being satisfied that the total level of cover is reasonable.

Does life insurance pay tax free?

The policy itself may pay the full insured benefit, but the recipient could have a tax liability depending on their relationship with the insured person, policy ownership and applicable tax rules.

Should cohabiting couples arrange separate policies?

Separate policies or a suitable life of another structure may be considered, particularly because cohabiting couples can face different inheritance tax treatment from married couples.

What happens when a term life policy ends?

Cover normally stops at the end of the term. No payment is generally made if the insured person is alive and no valid claim has occurred.

Can I cancel life insurance?

You can normally cancel a policy, but cover will end and premiums already paid may not be refunded outside any applicable cooling off period.

When should I review life insurance?

Cover should be reviewed following major life events such as marriage, having children, buying a home, changing jobs, starting a business or taking on additional debt.

Arrange a life insurance review

Life insurance should reflect the people who depend on you and the financial effect your death would have on them.

Whether you are arranging cover for the first time, protecting a growing family or reviewing an existing policy, Dooley Insurance Group can help you understand your options.

Contact our financial services team to arrange a life insurance review.

The information on this page is general and does not constitute personal financial, legal or tax advice. Cover is subject to medical and financial underwriting, policy definitions, exclusions, terms and conditions. Tax treatment depends on individual circumstances and may change.

Dooley Insurances Ltd t/a Dooley Insurance & Mortgage Brokers and Dooley Insurance Group is regulated by the Central Bank of Ireland.