Conversion Option
A conversion option allows you to extend your term life insurance policy without needing a medical exam. If your current policy expires and you develop a health issue, getting new cover can be difficult.
However, with a convertible term life insurance policy, you can extend your cover without having to provide further medical information or having to undertake a medical exam, ensuring continued protection regardless of your health status at the time of conversion.
Learn more about the Convertible Life Insurance.
Cooling-Off Period
A statutory period immediately after purchasing a life insurance policy during which the policyholder can cancel the contract without penalty. This period is usually 30 days.
While you’re entitled to a refund during the cooling-off period, insurers may deduct fees for administration costs. The amount depends on the insurance company, and details about cancellation charges can be found in your policy’s terms and conditions.
Cover
The total amount of money you wish to insure. For example, €200,000 of life insurance means your beneficiaries would receive this amount if you pass away during the policy term.
If you’re unsure about the right cover amount for your family, you can read our article on the topic or contact one of our financial advisors for guidance.
Critical Illness Cover
Critical illness cover or Specified Serious Illness Cover is a benefit that pays out a lump sum if you’re diagnosed with a serious illness covered by your policy, such as cancer or a heart attack.
It’s often misunderstood as the same as life insurance, but critical illness cover is a separate benefit that you can add to your policy.
Learn more by reading our Serious Illness Cover Guide.
Decreasing Term Assurance
A type of life insurance where the payout reduces over time, often used for mortgage protection, as the sum assured decreases alongside your mortgage balance.
For example, Sarah takes out a €200,000 mortgage with a 20-year term. She also gets mortgage protection with life cover starting at €200,000. Each year, as she pays down her mortgage, the outstanding balance decreases.
After 10 years, her mortgage balance is €100,000, and the life cover on her mortgage protection has also reduced to €100,000. This means if something happens to Sarah, the life cover will pay off the remaining balance of the mortgage, which decreases over time as she makes payments.
It’s advisable to have life insurance alongside your mortgage protection. While mortgage protection will pay off your mortgage if you pass away, life insurance provides an additional payout to your family.
This extra support can help cover other expenses like bills, maintaining their lifestyle, paying for education, or even contributing to your children’s first car or a mortgage deposit for their first home. This ensures your family is financially secure beyond just the mortgage.
Learn more about the differences between life insurance and mortgage protection.
Dual Life Insurance
Dual life insurance covers two people and pays out on both lives. After the first person passes away, the second person is still covered, and a second payout will be made when they pass away. This is often mistaken for joint life insurance, but it provides more extensive cover for both individuals.
Read our article on the differences between Dual and Joint life insurance to make informed decisions, or contact us for personalised guidance.
Joint Life Insurance
Joint life insurance covers two people; however, the policy pays out on either the first or second life assured’s death (depending on if the policy is set up on a joint life first death basis or a joint life second death basis). Many people confuse this with dual life insurance, which pays out for each life insured separately.
Read our article on the differences between Dual and Joint life insurance to make informed decisions, or contact us for personalised guidance.
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