General FAQs
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How long will it take to put my cover in place?
Putting cover in place won’t take too long at all. Whether you meet with us in branch or over the phone our advice process will only take about 1.5 hours. No time at all for the peace of mind you get when over is in place.
For those looking to take out Mortgage Protection as part of their home buying journey, this could be done in a few simple steps. For most people, this could be as simple as 7 questions in 7 minutes and your cover will be sorted.
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What is Life Cover?
Life Cover can provide a lump sum and/or a monthly income payment to your estate if you die. The type and amount of Life Cover you choose should be based on your individual circumstances and requirements. Importantly, many consider life cover when if your loss would have a financial impact on your remaining family and dependants. To find out more, click here.
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What details do you need to give when applying for a Protection Product?
Our expert advisers will take you through the application process
- They will ask questions about your lifestyle (e.g. your hobbies, your smoking and alcohol consumption), your occupation, your medical history, such as whether you have been hospitalised or been to see your GP recently and the outcome, your family’s medical history, your doctor’s contact details.
With your consent, your doctor may be contacted to provide a report on your health depending on your health, age, type and amount of policy you want to take out.
These details are required by the insurance company to assess the appropriate premium. It is extremely important that you fill out this form truthfully and in full, as these details are fundamental to your contract. If you have any doubts as to whether something is relevant or not you should include it. This will mean that if you or you family do need to claim in the future, you can be confident that the claim will run smoothly.
- Will premiums stay the same for the term of a LifeChoice policy?
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If I die, who is the benefit paid to?
If the Mortgage Protection policy is required by your lender to repay your mortgage, the benefit will be paid directly to your lender.
If the amount of cover is greater than the balance due on the mortgage, the remainder will be paid to your estate.
If the amount of cover is less than the balance due on the mortgage, the remainder will be owed to the lender by your estate.
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Will you need to attend a doctor?
- If you have had an illness in the past that the insurance company needs to know more about, or
- If the amount of cover you require is very large, you may be asked to attend a doctor for examination and/or tests (this review process is known as underwriting).
- Where can I download the Commission Summary Document?
About Mortgage Protection FAQs
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What is Mortgage Protection?
Mortgage Protection
is cover is a form of life cover designed specifically to repay your loan if you die with the cover decreasing over the term of the policy to broadly match the reducing balance of the mortgage to be repaid. By law, with limited exceptions if you have a mortgage on your principle residence, you must have Mortgage Protection. To find out more, click here. -
Can you use an existing life assurance policy to cover a new mortgage?
Yes, you can use an existing life insurance policy as long as:
- it is not in place to cover another loan or mortgage;
- the amount you are insured for is at least equal to the term and amount of your mortgage.
How to use an eligible existing protection policy to cover a mortgage:
You would have to ‘assign' the policy to your lender. This means you would agree to give your lender, the life insurance benefit to pay off your mortgage if you died during the term.
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Can you change your Mortgage Protection policy if you change your mortgage?
If you increase the amount of your mortgage or extend the term we will look to amend the existing policy. Any amendment to an existing policy would be subject to underwriting and policy limits.
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Who is covered on a Mortgage Protection policy?
Your Mortgage Protection policy pays out on the death of the person(s) named on the policy.
You can either cover:
A single life i.e. if the mortgage is in one name.
2 lives i.e. if the mortgage is in two names. If the policy is covering 2 lives, the policy will pay out when the first of the 2 lives named die and the policy will then end (Joint policy) or when both of the 2 lives named die and the policy will then end (Dual policy).
About Serious Illness FAQs
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What is Specified Serious Illness?
Specified Illness cover can help relieve financial pressure when faced with the unexpected providing you with a lump sum payment on diagnosis of certain serious illnesses. To find out more, click here.
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What should you think about before applying for Specified Illness Cover?
If you are employed:
- Does your employer provide sick pay?
- If so, how much do you get?
- How long do you get paid?
- Do you have an existing specified illness policy or an Income Protection policy and if so, what level of cover do you have?
If you are self employed:
- What existing cover you have, whether through an existing specified illness policy or an Income Protection policy?
- How comprehensive is this cover? Could it provide you with an income and cover the full medical costs and rehabilitation costs if you were diagnosed with a serious illness?
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What types of illnesses are covered under Specified Illness Cover?
- The illnesses covered are severe ones, ones that will most likely have you out of work for a period of time.
- Specified Illness Cover pays a benefit if you suffer one of the illnesses specified in the terms and conditions of the policy.
- You can review the illnesses covered in the terms and conditions of the policy. Your illness must also meet the severity specified otherwise they may not be covered.
Most of the claims paid are as a result of cancer, heart attack or stroke.
About Income Protection FAQs
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What is Income Protection?
Income Protection protects the income you earn that supports your day-to-day essentials & lifestyle if you were unable to work after an accident or illness. To find out more, click here.
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Is there tax relief available on Income Protection?
Income protection premiums, up to certain limits, qualify for tax relief at your marginal rate.
If you are employed, the life assurance company will deduct tax and social insurance payments from your benefits in the same way that your employer would.
If you are self employed, it may be payable gross. It should be treated like trading income in your accounts.
How much tax relief could you claim on your premiums?
- You can claim tax relief on your premiums at your marginal rate of tax, up to a yearly limit of 10% of your total income.
How do you claim tax relief?
You will receive a statement showing the premiums you have paid each year from your insurance company.
To claim your tax relief you can either register for tax credits by using the PAYE Anytime system available through www.revenue.ie or send the income protection policy statement to the tax office directly.
If you are an employee, once you have registered, your payslip should show the relief that you have received.
If you are self-employed, the tax relief can be claimed when you file your end of year tax return.
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How much does Income Protection cost?
Income Protection can be quite flexible and the options you select will impact the premiums payable, for example:
- The percentage of your income you cover
- The length of time you wish to be covered
- The waiting period before the payment starts
- Your occupation - your job affects your premium as some occupations are higher risk than others
- Your age
- Smoking status
- Your health & family medical history
Tax relief is available on income protection premiums paid up to certain limits and can reduce the cost of your cover by up to 41%.
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Certain occupations are not covered, why is this?
Occupations which can be covered are typically categorised into 4 classes. ‘Class 1’ jobs are considered the lowest risk and would pay the lowest premium. The cost increases for the different classes.
For example:
- Class 1
- Accountant
- Bank official
- Solicitor
- Chemist
- Class 2
- Dentist
- Hairdresser
- Laboratory technician
- Shopkeeper
- Class 3
- Electrician
- Postman
- Social worker
- Driving instructor
- Class 4
- Plumber
- Floor layer
- Garage mechanic
- Carpenter
- Class 1
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Is Income Protection flexible?
Protecting your income is very flexible and allows you to:
- Increase the cover amount as your career progresses with our Guaranteed Insurability Option. You can also increase your premium and benefits in line with inflation (up to a maximum of 3%) to help you maintain your purchasing power in the future.
- Avail of the Back to Work Benefit. If you return to work after claiming for one year or more, we will pay you 50% of your replacement income in month 1 and 25% in month 2.
- Avail of the Hospital Cash Benefit. If you have to stay in hospital more than 7 days you will be paid the equivalent of a day’s replacement income for every day spent, for a maximum of 365 days in total.
- Select the Confirmed Income Option and if your income falls during the term of your policy, we will still pay you based on the income confirmed at the outset.
- Continue your cover if you change job, regardless of your new occupation. You can also have cover in place if you become unemployed, take a career break or parental leave under our Essential Activities Benefit. If you become unemployed and suffer extreme disability, we will pay you up to €15,000 per year if you meet certain criteria. If you return to work within 12 months, you can reinstate your full cover without the need to provide new evidence of health.
About Business Protection FAQs
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What is Business Protection?
Business Protection cover is for individuals who want to ensure their investment property or business will provide their family with financial security in the event of death or serious illness. It pays a lump sum on death or on the occurrence of a specified serious illness which can be used to secure the value of the business. To find out more, click here.
It can protect:
- Keyperson(s) in a business
- Partnerships
- Personal & Corporate shareholders
It can be used to:
- Provide the funds needed to buy out a partner’s share of the business
- Ensure their family receives a fair price
- Ensure the surviving business partner retains ownership and control
- Avoid the need for personal loans to be taken out by the surviving partner to buy the business back and retain control of the business
- Provide a formal plan of what should happen to business partners or key staff
It can also support to:
- Pay off some or all of the outstanding mortgage
- Reduce the burden of monthly payments of loans
- Provide valuable assets for dependants