Most of us know that we need to protect ourselves, our families and homes against the financial hardship that could be caused by an illness or death in the family. This guide aims to give you straightforward information about the different types of protection you can get so that you can make your decisions with confidence.
Life cover pays a lump sum in the event of death. Life Assurance policies can be arranged on an individual or joint basis in the event of a spouse, partner or business partner(s). When two individuals are covered, policies can be arranged on a Dual Life basis, whereby both individuals are insured separately under the one contract or on a Joint Life basis, where a claim would be paid out on the death of the first individual.
Critical Illness Cover
Critical Illness cover pays a lump sum if you are diagnosed as suffering from one of a number of specified critical illnesses or need to undergo specific surgery. Examples would be Heart Attack, Stroke, Cancer, MS etc. Critical Illness payment will only be made once. Further payments are not made on any subsequent events. The cost of Serious Illness cover is higher than the cost of Life cover because the chance of getting a serious illness is greater.
In almost all cases, life companies will provide sum level of Child Benefit as standard at no additional cost should any of your children become critically ill or die once these benefits are chosen on the main lives assured. The payout is usually a % of the individual’s illness and/or life cover benefit.
Optional Benefits under any Protection Plan:
Hospital cash benefit – If you or a member of your family is admitted to an Irish hospital as an in-patient for more than 3 days, the life company will pay the amount of Hospital Cash Benefit you have chosen multiplied by the number of days (24 hours) you are in hospital up to one year (365 days).
Personal accident benefit – This benefit covers you if you unable to continue at work because you have become temporarily disabled due to an accident. The benefit can be made for a maximum of 52 weeks but stops on your recovery, 60th birthday or death, whichever is earliest.
Waiver of premium benefit – This benefit gives you the added security of knowing that if you are unable to work because of injury or illness, we will pay your premiums after a deferred period which is usually 26 weeks.
Protection continuation option (Conversion Option) – This option allows you to extend the term of the protection benefit provided by your policy without providing further medical evidence of good health. This option must be selected on the application form at the start date of the policy however in most circumstances it can be exercised at any time during the term. .
Inflation protection option – This is where you protect your benefits against the eroding power of inflation. If chosen your benefit and premium will increase by a defined % as determined by the chosen insurance company.