Income protection vs Dual Life Insurance

masterboy123

Hi,

We are a married couple, both in our 30s with a 3-year-old child. I am the sole earner, and my partner is a homemaker.

I am looking at options to get income protection versus dual life insurance coverage (where the policy continues following the death of the first person).

1. Which cover should be given priority? Each cover is costing about €70 per month. I don't want to spend €150 per month and get both policies.

2. Does life insurance cover ANY type of death?

3. If I purchase policy at the age of 40, would the monthly premium increase with our age? Like loading fees for VHI.

Many thanks 😊

Buddy Bubs

Life insurance will be for a specified term or whole of life, you need to know which one you are taking out.

Whole of life does get very expensive as you age. It's not easy or cheap to guarantee a payout.

Term insurance will be fixed price to say 50, or another fixed price to age 60 for example. You need to decide how long you want insurance for. Usually while you have child dependents at least.

Some policies pay out on any type of death, others don't count suicide for example and there may be exclusions if you participate in dangerous activities, that activity may be excluded or you will be heavily loaded for it. Hang gliding, as an extreme example, or motorbike racing another.

Income protection does a different job, it's if you can't work for some reason.

There's also specified illness cover which is usually an option with life insurance or can be bought standalone.

I'm QFA and I worked in that industry as an advisor, I don't anymore but you really need to sit down with someone you trust and do a review as to your specific needs nobody here can really advise you.

I set up about 100 policies, everyone's needs were different. In my time I had 1 claim, a client passed away and it was paid out. The man's wife was very grateful for the proceeds, she then stopped working to look after children.

I had to step away from the claims process, I wasn't allowed be involved which angered her a little bit but that was outside my remit.

masterboy123

https://www.boards.ie/discussion/comment/122289568#Comment_122289568

That's very helpful.

So I am looking at 20 years fixed term life insurance.