What is Life Insurance?
A life insurance cover pays a lump sum to your loved ones if you pass away during the term of your policy. It is a simple way to make sure your family can maintain their lifestyle even if you are no longer there to support them.
This money will help your family pay off:
Mortgage or rent payments, Childcare and education costs, Everyday household bills, Outstanding loans or debts and Funeral and immediate family expenses
Do I Need Life Insurance?
Life insurance is typically needed when another person could be financially affected by your death. You may want to consider it if:
- ✓ A partner, child or other family member depends on your income
- ✓ You have personal debts or ongoing financial commitments
- ✓ You provide unpaid care, childcare or household support that would be costly to replace
- ✓ You want to leave money for funeral costs, education or family expenses
- ✓ You are a business owner and your death could affect the business or other shareholders
A person with no dependents, limited debts and sufficient savings may feel they have less need for personal life cover. But it's worth remembering that funeral costs alone can add up quickly and a policy can help take care of that expense. So before settling on an amount, it's worth thinking through exactly what you'd want the policy to cover.
How Much Does Life Insurance Cost?
The premium you pay depends on the risk being insured and the policy you choose. Two people looking for the same amount of cover could end up with quite different premiums - one might pay as little as €10 a month, while another pays more for the exact same level of cover.
Factors that can affect the cost include:
Age, amount of cover, length of the policy, smoking, vaping or other nicotine status, health and medical history weight, occupation, lifestyle and hazardous activities, single, joint or dual-life structure and additional benefits such as specified serious illness cover, indexation or a conversion option.
Non-smokers typically get lower rates than smokers, though the exact difference depends on the insurer and your own circumstances.
Customer feedback
Different Types of Life Insurance
Term Life Insurance
Term life insurance covers you for a fixed number of years, typically 10 to 40 years and if you die during this time, your family gets the lump sum amount. The cover ends, once the term that you choose ends. There are two different variants for this type of life insurance:
Read moreWhole Life Insurance
Unlike term life insurance, whole of life cover does not have an end date. It stays in place for your entire life until you die and guarantees a payout, as long as you keep paying your premiums. That guarantee is the whole point. And it is also why it costs significantly more than term cover…
Read more
How Much Life Insurance Do I Need?
There is no universal formula. A useful starting point is to calculate the financial responsibilities that would remain and deduct resources already available to the family.
Consider:
- ✓ The income your household would lose and how many years support may be needed
- ✓ Mortgage, rent, loans and other debts
- ✓ Childcare and education costs
- ✓ Funeral and immediate expenses
- ✓ Savings, investments and existing life cover
- ✓ Death-in-service benefits provided through employment
- ✓ How much premium can be maintained comfortably over the full term
Affordability is really the key thing to keep in mind here. A policy you can comfortably keep paying for, even if that means a lower level of cover - is generally far more valuable than a larger policy that becomes a stretch to maintain down the line.
How Long Should Life Insurance Last?
The right term really comes down to how long the financial need is likely to last. Parents often choose a term that runs until their youngest child is financially independent, while others prefer to match it to something specific - a mortgage, a retirement date, or however long a partner is likely to depend heavily on their income.
It's worth keeping in mind that a longer term usually costs more, since the insurer is covering you further into the future, by which point you'll be older and considered at higher risk. The maximum term available, and the age at which cover expires, also varies from one insurer and product to the other - so it's worth checking this before deciding.
What Happens During Life Insurance Underwriting?
Underwriting is simply the insurer's way of assessing your application. For straightforward cases, this can often be decided using just the information you enter online. In other cases, though, the insurer might come back looking for a bit more - that could mean a report from your GP, some medical tests, or additional financial evidence.
Once they've everything they need, there are a few ways things can go
- ✓ Cover at the standard premium
- ✓ Cover at a higher premium
- ✓ Cover with amended terms or restrictions, where applicable
- ✓ A decision postponed and reviewed later
- ✓ Cover declined
A request for medical information does not automatically mean there is a problem. It means the insurer needs more information before reaching a decision. How long that takes really depends on what's been requested and how quickly it comes through.
Life Insurance Versus Mortgage Protection
Both products can pay a benefit following death, but they are designed for different purposes.
| Feature | Mortgage Protection | Level Term Life Insurance |
|---|---|---|
| Core Purpose | Clears the mortgage if you pass away during the term | Provides a lump sum for your family's living costs if you pass away |
| Who Gets Paid | The lender (bank) | Your loved ones (beneficiaries) |
| Cover Pattern | Decreases as the loan is repaid | Fixed, rising, or whole-of-life cover |
| Requirement | Usually required for a residential mortgage | Optional, but important if you have dependants |
| Flexibility | Single-purpose; tied to the loan | Multi-purpose; can be tailored to family needs |
| Typical Role | Protects ownership of the home | Protects lifestyle inside the home |
A lot of households would have mortgage protection to meet a lender's requirement to cover the mortgage and have separate life insurance for additional family protection. The suitable structure depends on existing cover, debts and family needs.
Benefits Included With Life Insurance
Losing a child is something no parent ever wants to imagine, but having the right protection in place means that if the unthinkable were to happen, the last thing on your mind would be money.
Children's Cover is a benefit that comes included with your life insurance policy, meaning your children are automatically covered under your plan too and there is no need to take a separate policy for them. If a child of yours passes away during the term of the policy, a lump sum of €5,000 is paid out to help you through that period. This could allow you to take time off work to grieve and be present with your family, without the added stress of bills piling up.
All of your children are covered from 3 months old right up until their 18th birthday or their 21st birthday if they are still in full-time education at that point. (T&Cs apply)
If you are ever diagnosed with a terminal illness and given less than 12 months to live, your life insurance does not make you wait. Instead of your loved ones receiving the payout after you pass, the full amount of your cover is paid out to you directly at the point of diagnosis.
This means you can use the money while you are still here, whether that is getting your finances in order, spending time with the people that matter most, or simply taking the pressure off your family during an incredibly difficult time.
To qualify, the diagnosis would need to be agreed upon by your attending consultant and the insurer's Chief Medical Officer, confirming that the illness is terminal and that life expectancy is less than 12 months.
Life changes, and when it does, you might need more cover. This benefit allows you to increase your cover at key moments in your life without having to go through any medical checkups or health questions and no matter how your health has changed since you first took out your policy.
When can you increase your cover?
You can apply for an increase when any of the following happens:
- You increase your mortgage, either to buy a new home or to carry out home improvements
- You get married
- You have a baby or adopt a child
How much can you increase by?
There are some limits to how much you can increase each time and overall:
- For any single event, you can increase your cover by up to €100,000 or 50% of your original cover amount-whichever is lower.
- Across all events over the lifetime of your policy, the total increase is capped at €200,000 or your original cover amount-whichever is lower.
Your monthly premium will go up in line with whatever increase you make.
When does this option end?
You can use this benefit up until you turn 55. If it is a joint policy, it ends when the older person on the policy reaches 55.
Add-Ons Worth Knowing About
In Ireland, 1 in 3 men and 1 in 4 women will get cancer by the age of 75, and around 7,500 people suffer a stroke every year. The chances of being diagnosed with a serious illness at some point in your life are higher than most people realise and that is exactly what this cover is designed for.
Specified serious illness pays out a tax-free lump sum if you are diagnosed with a specified serious illness- such as certain types of cancer, a heart attack, or a stroke (every insurance company have their own list of diseases, which are considered under this cover- therefore make sure you have a look at that list before taking up this cover). There are two ways to add this:
Standalone Specified Serious Illness:
This is separate from your life cover. If you make a specified serious illness claim, your life cover stays fully intact and nothing is reduced.
You can either add it on to an existing life insurance policy or take it out on its own- whatever suits your situation best.
It costs more, but it means your family is fully protected on both fronts
Accelerated Specified Serious Illness:
This is linked to your life insurance. If you are diagnosed with a serious illness, you receive a portion of your life cover early- as an advance payment. Your life cover then reduces by that amount.
For example: if you have €200,000 life cover with €50,000 accelerated serious illness cover, and you make a serious illness claim, you receive €50,000 and your remaining life cover becomes €150,000.
It is the more affordable option of the two.
Over time, the cost of living will go up. €200,000 today will not stretch as far in 20 years as it does now.
Indexation means your cover automatically increases each year in line with inflation, so that the protection you have today still means the same thing to your family in the future. Your premium increases slightly each year too, but you will never need to reapply or answer medical questions to get that extra cover.
Think of it as future-proofing your policy.
With a conversion option, you can switch from your temporary policy into a permanent one at any point during your cover, no health questions, no medical exams, no hassle, regardless of what your health looks like at that point. (T&Cs apply)
Why does this matter?
Life changes. If your health has deteriorated over the years, getting a brand-new policy could be difficult or expensive. This conversion option means you will never be left without cover just because your circumstances changed.
It will cost you a little more to include from the start, but it is one of those things you will be very glad you added if you ever need it.
Not sure which add-ons make sense for you?
Get your quote in seconds and we will help you build the right cover for your situation-fully online, no paperwork, no sales calls, 100% digital end to end experience.
One Thing to Be Aware Of
Getting a quote or submitting an application doesn't mean your cover is active. Cover only starts once the insurer has accepted the application and the policy is officially in force. The amount of cover, how long the policy runs, the premium and any extra benefits all depend on the policy you choose, the insurer's terms, and the information provided during the application.
When Should You Review Your Cover?
Life insurance is not something you set up once and forget about. As your life changes, your cover should change
with it. Here are the moments when it's worth taking a fresh look:
More dependants mean more people relying on your income. If you set up your policy before children came along, the cover amount you chose then may not reflect what your family actually needs today.
This one could save you a significant amount of money. Smokers pay roughly double the premium of non-smokers. If you have been smoke-free for 12 months or more, you may be able to apply for non-smoker rate and reduce your monthly premium considerably.
If you are on a reviewable policy, your insurer may have increased your premiums at a review point. Before accepting that increase, it is worth checking what else is available in the market you may get better cover for less elsewhere.
Not all policies are equal, as policies have improved over the past couple of years. Similarly, if your current policy does not include a conversion or an indexation option or has limited terms, switching to a policy with stronger conversion features could give you far better protection as you get older.
- ✓ Getting married or divorced
- ✓ A significant change in your income
- ✓ Taking on the financial care of an aging parent
- ✓ Coming into an inheritance
- ✓ Change in your employee benefits
How often should you review?
As a general rule, once a year is a good habit. And any time one of the above happens, do not wait for your annual review, act straight away. Switching is simpler that you think.
One important rule: never cancel your existing policy until your new one is fully in place and approved. If your health has changed in the meantime, you want to make sure you can get the new cover before letting the old one go.
At Beat the Bank, switching is straightforward. Get a new quote in seconds and we will help you compare what you have against what is available- fully online, no phone calls, no hassle.
How to Make a Claim
We understand that making a claim is never easy. While the claim itself is handled by the insurer, we are here to provide support and guidance throughout the process. You can contact us at any stage, and we will help you understand what is required and what to expect as the insurer assesses the claim. We will be on hand to answer questions, explain what is happening and support you until the claim is settled and the benefit is paid to the named beneficiary.
Why Choose Beat the Bank ?
Compare Ireland's Leading Insurers
We compare life insurance from Ireland's leading insurers, including Royal London, Aviva, Zurich, Irish Life and New Ireland. This allows you to compare different premiums, policy features and cover options to find a policy that suits your needs, circumstances and budget.
Save Up to 40% Compared to Bank Quotes
We help keep your insurance costs low by passing back a portion of the commission we receive from insurers. This means you can pay less for the same policy from the same insurer than through another provider. The savings available will depend on the policy, insurer and individual quotation.
Cover Tailored to Your Needs
Life insurance is not one-size-fits-all. The right amount of cover and policy term will depend on factors such as your income, family responsibilities, debts and future financial commitments.
Our team can help you compare your options and choose a level of cover that reflects your circumstances.
Trusted & Regulated Irish Broker
Beat the Bank is authorised and regulated by the Central Bank of Ireland and is rated 4.9 on Trustpilot by customers across Ireland. (Financial Planning Matters Limited t/a Beat The Bank is regulated by the Central Bank of Ireland. Financial Planning Matters Limited t/a Beat the Bank is not a bank and is not authorised to carry out banking business in Ireland)
Fast Online Quotes & Expert Support
Get a personalised quote in seconds and begin your application online in minutes, with no pressure and at a time that suits you. If additional medical information or underwriting is required, our team will guide you through every step of the process.
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FAQs
If you choose a level term policy, the premium will remain fixed for the policy term, provided you don’t change your cover. If you choose indexation, both your cover and premium will increase each year in line with the policy terms. Other changes you request may also affect your premium.
Joint life cover normally pays out once, following the first death of either person, after which the policy ends. Dual life cover provides separate cover for each insured person, so a benefit may be payable on each life if both the insured persons die during the policy term. Premiums and terms vary between insurers, so the more suitable option depends on your circumstances.
Not always. Many applications can be assessed using the information provided on your application form. Depending on your age, health, medical history and the amount of cover requested, the insurer may ask for additional information such as a GP report, medical questionnaire or medical examination. Requirements vary between insurers.
Some straightforward applications can be assessed quickly – sometimes the same day, while others take longer if the insurer needs additional medical or financial information. The timeframe depends on your individual application and how quickly any requested information becomes available.
Yes. Smokers, vapers and users of other nicotine products can still apply for life insurance. Each insurer has its own definition of smoker or nicotine use, so it’s important to answer the application questions accurately, as this affects both your eligibility and your premium.
Yes. You can cancel a life insurance policy, although the financial consequences depend on when you cancel and the type of policy you hold. Individual life insurance policies generally have a 30-day cooling-off period. If you’re considering cancelling existing cover and replacing it with a new policy, don’t cancel your current policy until the replacement cover has been accepted and is fully in force.
Yes. You can have more than one life insurance policy – for example, mortgage protection for your home loan alongside separate level-term life insurance for your family’s wider financial needs. Insurers may ask why a particular level of total cover is required as part of their financial underwriting.
You don’t usually need a separate life insurance policy to get a mortgage in Ireland. What lenders generally require is mortgage protection, which is a type of life insurance which decreases over the term, specifically designed to repay the mortgage if you die during the term.
Mortgage protection usually decreases in line with your mortgage balance and is generally cheaper than level-term life insurance.
Life insurance is different – it isn’t tied to your mortgage, the cover can stay level, and the payout goes to your chosen beneficiaries. Many people have both, depending on the level of protection they want for their family.
The good news is that a life insurance payout is not treated as income, so your family won’t pay income tax on the money they receive. However, Capital Acquisitions Tax (CAT) may apply depending on the beneficiary’s relationship to the policyholder and the amount involved.
This depends on the relationship between the policyholder and the beneficiary. A spouse or civil partner is fully exempt, regardless of the amount. A child can receive up to €400,000 tax-free (Group A threshold), a sibling, niece or nephew up to €40,000 (Group B), and anyone else – including a cohabiting partner – up to €20,000 (Group C). Anything above the relevant threshold is taxed at 33%. These thresholds are set by Revenue and reviewed periodically, so it’s worth confirming the current figures before relying on them. (Source: Revenue.ie, correct as of August 2026.)
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.
