Term Assurance

Term assurance is the simplest and cheapest form of life cover. You simply select the amount of cover you need and the number of years you need the cover over.

Typical costs for a 55 year old non smoking male would be €16.05 a month with Zurich. If you smoke you can expect to pay almost 90% more (Hibernian €30.12) for the same cover. If you are a female then because females live longer than males the same cover will cost you only €12.11 a month with Zurich. If you smoke the same cover would cost you €23.82. All these premiums include the new 1% government tax introduced this August.

The real plus of this policy is its affordability.  Once you are accepted the amount you pay is guaranteed and providing you don’t opt to have cover increasing then the amount you pay remains at a constant level for the life of the policy.

The only downside of this type of cover is that you must select a term. If nothing happens within that term then the cover expires and because the money you pay in just provides the cheapest life cover there is no savings element so you get nothing back.

If you have a conversion option then subject to the policy terms and conditions you can carry your cover over to another policy that can be for another term or can last the rest of your life. A new policy would cost you more because the price you pay will be based on your then age and as we get older the cost of  taking out a new policy gets much more expensive.

Currently the most competitive insurance companies tend to be Zurich, Hibernian and Friends First.

Generally you have to be under 70 and in good health with no adverse medical history to take out a policy. Remember the older you are the more expensive it is to take out a new policy.

The best person to advise you is an insurance broker. The internet is also useful for those who wish to do their own research.

Joh Geraghty LABrokers.ie