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:
- Level Term: This is a straightforward cover. You just have to pick two things:
- How much cover you want, this would be the lump sum your family receives
- How long you want to be covered, this is anywhere from 10 to 40 years
You can set up the policy for yourself alone, or jointly with a partner. If you die during the cover time, your loved ones will receive the full lump sum which would be tax-free. If you are still alive at the end of the term the cover on the policy stops. There is no cash value built up, and nothing paid out at the end, it is pure protection, nothing more. This is the best option for income replacement or covering general family expenses.
- Convertible Term: This works exactly like level term insurance – you choose your cover amount and how long you want it for, the only difference is that you get the added benefit of a conversion option on your plan.
Think of a conversion option as your backup plan. Life is unpredictable, and if your health takes a turn for the worse down the line, the last thing you want is to lose your cover or be turned away when applying for a new policy. With a convertible term, you can switch from your policy into another policy at any point during your cover, no health questions, no medical exams, no hassle, regardless of what your health looks like at that point.
Key Takeaways
- No Medical Exam: You can switch to a new, longer-term policy without any medical checkups.
- Health Protection: It protects you if you develop health issues after buying your original policy, as the insurer cannot deny you the new policy based on your health changes.
- Time Limits: You must use this option before a certain age or before the policy expires.
Why does this matter?
Life changes. If your health deteriorates over the years, taking out a new policy could become difficult or expensive. The conversion option protects you from that risk, it locks in your ability to stay covered no matter what the future holds.
The trade-off is that it costs a little more than a standard level term policy. But, that small extra premium buys something genuinely valuable, peace of mind that your cover won’t run out just because your circumstances changed.
Who is it for?
It is suitable for people who are:
- Are younger and want flexibility as life evolves
- Have a family history of illness and want to protect their options
- Are not sure how long they will need cover for
Which Type of Term Insurance Is Right for You?
| Particulars |
Single |
Joint |
Dual |
| Who is covered |
One person |
Two people, one policy |
Two people, one policy but two separate payouts |
| How it pays out |
Pays out if that person passes away |
Pays out, when the first person passes away |
Potential second payout due |
| What happens after a claim |
Policy ends |
Policy ends for both |
Surviving person’s policy continues |
| Best for |
Someone protecting themselves or their family alone |
Couples who want straightforward, lower cost cover |
Couples who want full, independent protection for each other |
| Cost |
Single premium |
Lower than dual |
Higher than joint |
Not sure which one to pick?
If you are a couple, joint cover is simpler and cheaper, but dual cover means neither of you is left without protection after a claim. For most families, dual cover offers better long-term peace of mind.
How Much Does Your Term Life Insurance Cost?
Here are some typical examples to give you a rough idea:
| Profile |
Cover Amount |
Term |
Estimated Monthly Cost |
| 30-year-old non-smoker |
€250,000 |
30 years |
From €16.42/month |
| 35-year-old smoker |
€250,000 |
25 years |
From €33.69/month |
| 40-year-old non-smoker |
€200,000 |
20 years |
From €19.06/month |
| 40-year-old smoker |
€200,000 |
20 years |
From €36.46/month |
All examples assume good health and standard monthly premiums.
Your price depends on:
- Your age – the younger you start, the cheaper it is
- Whether you smoke
- Your health history
- How much cover you want
- How long you want to be covered for
The best time to get covered is always now. The older you get, the more it costs. A 30-year-old will pay significantly less than a 40-year-old for the exact same cover. Getting your quote takes seconds, and locking in your price today could save you a lot over the years.
