A life insurance policy pays your estate an amount of money if you die during the time limit set out in the policy.

For Dependants:

Protection needs are individual and they vary widely from one person to another.
For example, if you have a family then the need to protect your children against a sudden loss of income should cease when they become financially independent. Some children leave school at 16 whilst others will continue with full time education until well into their 20's. You will have to make a realistic assessment of the length of time for which you will need protection.

Since the objective of most forms of protection is replacement of income in the event of death, the size of the income required to meet future needs and expectations determines the amount of cover required.

The following are specimen illustrations of the gross capital sums required to produce a desired net weekly income for your dependants.

* Net of Dirt Tax @ 22%
The illustrated capital sums are calculated assuming:

• the money is deposited earning the interest rates shown with the interest credited half-yearly,
• DIRT is paid half-yearly and..
• The weekly income is payable continuously without erosion of the capital sum.

Remember, if additional payments (such as pensions or social welfare payments) will be available in the event of your death, you should take this into account when calculating the amount of your income you need to cover.