Life Insurance in Northern Ireland

We all like to think that our family would be protected should the worst happen to us. Whether it’s to cover a mortgage, or simply to ensure that your loved ones have something in their pockets, life insurance can help to make a difficult time easier.

What is basic life insurance?

Life insurance or ‘term assurance’ is a policy that will pay out a lump sum if the policyholder dies during the term of the policy and is designed to give the policyholder’s dependents financial reassurance if the worst was to happen. This money can be especially useful to cover expensive funeral bills, clear debts and to cover mortgage payments along with regular bills if required.

Each life cover policy will come with a fixed term length. This can be specified by the policyholder when applying for life insurance. The term of the policy specifies how long it will run for. So for example if you take on a life insurance policy with a term of 15 years, the policy will only pay out if you were to die within 15 years of taking the policy.

When deciding what type of life insurance policy is most suitable for your needs, there are two key types of policy you should consider, level and decreasing (also known as mortgage) term insurance. A level term policy is fixed at a set amount. No matter how far into the term of the policy that a claim is made, the amount paid out will be the same. A decreasing or mortgage policy varies in that it is bought to pay off the cost of a mortgage if the policyholder was to die. As a result the amount paid out in the event of a claim will decrease over time roughly in line with the balance remaining on the mortgage.

Whole of life insurnace

Unlike term assurance, whole of life assurance will continue until the person eventually dies. It may also have an investment element.This type of policy can be used for ultimate funeral expenses or to pay an inheritance tax bill.

For more information on life assurance please contact us.