Does it matter if my partner and I aren’t married?

Yes, this is one of the most common tax surprises with life insurance. If you’re not married or in a civil partnership, your partner falls into the lowest tax-free threshold (currently €20,000), regardless of how long you’ve been together. A large payout could leave them with a significant tax bill at an already difficult time. If this applies to you, it’s worth discussing options such as a “life of another” policy structure, where each partner takes out a policy on the other, which can help reduce or avoid this exposure.