Level Term insurance provides affordable protection by guaranteeing a payout to beneficiaries if the policyholder passes away within a set term. These plans are typically chosen to cover specific financial responsibilities or periods in life, like mortgages or childcare. It offers a fixed payout amount for a specified period, such as 10, 20, or 30 years. If the policyholder dies during this term, the beneficiaries receive the agreed payout amount.
Sarah, a mother of two, selects a 20-year Level Term Insurance plan for €200,000 to ensure her children’s financial needs are met if anything should happen to her. With level term cover, her children would receive the full €200,000 if she passes away anytime within the 20-year period, helping to cover education costs and other necessities.
Decreasing Term Insurance provides a payout amount that reduces over time, typically in line with a mortgage or other decreasing debt. This plan is usually the more affordable option for covering mortgage protection.
Decreasing term insurance helps to clear specific debts, such as a mortgage,
should the policyholder pass away before the debt is repaid. Dependents won’t be left with the burden of paying off a mortgage or other decreasing loans.
John and Mary, first-time homeowners in Ireland, take out a decreasing term
insurance policy for €300,000 over 25 years. As they pay down their mortgage, the coverage amount decreases. If either John or Mary passes away, the insurance will cover the remaining balance of their mortgage, ensuring their family keeps the home without the financial burden of debt.
Adding an indexation option to a term insurance policy allows the cover amount and the premium to increase over time, typically in line with inflation. This ensures that the payout maintains its purchasing power as the cost of living rises.
If your term policy starts at €200,000 cover with an indexation option of 3% per year, the cover amount will increase annually by €6,000. After 10 years, the cover would reach approximately €260,000. Although the premiums increase, this helps your coverage remain aligned with rising living costs, benefiting your family when they need it most.
A conversion option lets you extend or convert your term insurance policy to a new term or whole-of-life policy without requiring additional medical underwriting. This feature provides flexibility to adapt your coverage as your financial needs evolve.
Tom, a 35-year-old professional, opts for a 20-year term policy with a conversion option. At age 55, when the initial policy expires, Tom decides to extend his coverage due to ongoing financial responsibilities. He uses the conversion option to avoid new health checks, securing a new plan with ease.
Serious illness cover is essential in helping to financially protect individuals and families when facing life-altering health conditions.
Pension Term Assurance is a type of life insurance specifically designed to provide financial security if the policyholder passes away before reaching retirement age.
Executive Pension Term Assurance is a life insurance policy tailored for company directors, providing life cover with tax efficiency. Businesses can fund it as a company expense, potentially reducing corporation tax.
Inheritance tax, or Capital Acquisitions Tax (CAT) in Ireland, can be a significant financial burden on beneficiaries, especially if a large estate includes valuable assets like family homes.
When planning long-term financial security for your loved ones, Whole of Life insurance is a key product that ensures protection throughout your life.
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Level Term offers a fixed payout throughout the policy, while Decreasing Term reduces the payout over time, typically matching mortgage balances.
The coverage amount should align with outstanding debts, dependents’ needs, and financial obligations. An advisor can help you tailor the amount to your circumstances.
If the policy expires and no claim has been made, the cover simply ends. You may choose to extend or convert the policy, especially if it includes a conversion option.
Premiums will increase in line with the indexation rate (often 2-3% annually). This adjustment maintains the policy’s value relative to inflation.
Yes, term policies can generally be cancelled at any time. However, you would lose any coverage and paid premiums if cancelled mid-term.
It allows you to extend or renew coverage without further health checks, a benefit if your health situation changes over time.
At Smart Financial, we help you navigate the best options for protecting your family and assets. Our advisors can discuss indexation, conversion options, and tailored term insurance plans that align with your specific goals. Reach out today for a consultation!
