Life assurance is a crucial part of financial planning, providing peace of mind knowing that your loved ones will be financially protected in the event of your passing. With the unpredictability of life, securing life assurance is one of the most important steps you can take to ensure your family is financially supported.

Life assurance, often referred to as life insurance, is a contract between you (the policyholder) and an insurer. In exchange for regular premium payments, the insurer promises to pay a lump sum to your beneficiaries if you pass away or if you are diagnosed with a serious illness, depending on your policy terms. Life assurance is an essential tool in ensuring that your family’s financial needs are met in the event of your death, covering funeral costs, outstanding debts, and ongoing living expenses.

The aim of life assurance is to provide financial security to your dependents or beneficiaries. Whether you have children, a spouse who depends on your income, or significant financial obligations like a mortgage, life assurance ensures that your family will not face financial hardship due to your untimely death.

Life assurance policies come in several forms, each designed to meet different needs and circumstances. Below, we’ll explore the most common types of life assurance policies, and their respective features, to help you decide which one best suits your needs.

1. Term Life Assurance

Term life assurance is one of the most popular and straightforward types of life assurance. It provides life cover for a specified period, known as the “term,” which is chosen when you take out the policy. If you pass away during the term, your beneficiaries will receive a lump sum payment.

Key Features of Term Life Assurance:

• Fixed Term: The policy lasts for a fixed period, typically ranging from 10 to 30 years. You can select the duration based on your financial obligations.

• Affordable Premiums: Because term life assurance only provides cover for a set term, and only in the event of your death during that term, premiums are often more affordable compared to permanent life assurance policies.

• Cash Lump Sum: If you die within the policy term, your family or beneficiaries will receive a lump sum payout, which they can use for various needs, such as covering funeral expenses, outstanding debts, or living costs.

• No Payout After the Term: If you outlive the term of the policy, there is no payout. Coverage ends at the conclusion of the term.

Term life assurance is suitable for people who only need life cover for a set period, such as during the years when they have children living at home or while they have a mortgage. Its affordability makes it an attractive option for many people.

2. Whole of Life Assurance

Whole of life assurance, as the name suggests, provides life cover for your entire life, as long as you continue to pay the premiums. Unlike term life assurance, which expires after a set period, whole of life assurance guarantees a payout no matter when you pass away, whether that is in the near future or many years from now.

Key Features of Whole of Life Assurance:

• Lifetime Coverage: The policy remains in force for your entire life. Your beneficiaries will receive a payout when you die, regardless of when that happens.

• Fixed Premiums: Premiums tend to be higher than those for term life assurance because the policy provides lifetime coverage. However, they remain fixed throughout the life of the policy.

• Guaranteed Payout: Your beneficiaries will receive a lump sum upon your death, which can be used for funeral costs, paying off debts, or providing ongoing financial support for your loved ones.

• Estate Planning: Whole of life assurance can also be used for inheritance planning, helping your family cover inheritance taxes or other estate-related expenses. This can prevent your family from having to sell assets to meet these obligations.

• Higher Premiums: Whole of life assurance generally comes with higher premiums due to the lifelong coverage and the guaranteed payout.

Whole of life assurance is an excellent option for those looking for permanent coverage, particularly for those with estate planning needs or individuals wishing to leave a legacy for their family.

3. Specified Illness Cover

Specified illness cover is a type of life assurance that provides a lump sum payment if you are diagnosed with one of the illnesses specified in the policy. This typically includes life-threatening conditions such as cancer, heart attacks, strokes, and other serious diseases.

Key Features of Specified Illness Cover:

• Lump Sum Payment: In the event that you are diagnosed with a specified illness, you will receive a lump sum payment. This can be used to cover medical expenses, lost income, or to make necessary adjustments to your lifestyle.

• Wide Range of Covered Conditions: Policies usually cover a broad spectrum of serious illnesses, offering comprehensive protection against life-threatening conditions.

• Extra Protection: Specified illness cover can often be added to an existing life assurance policy, providing added peace of mind.

• No Death Benefit: Specified illness cover usually does not provide a death benefit unless the illness leads to death. It is primarily designed to provide financial support during the period of illness.

This type of life assurance is particularly useful for individuals who want to ensure they have financial support in the event of a serious illness, without necessarily passing away. The lump sum payment can be used to cover medical treatments or other expenses related to the illness.

4. Life Assurance for the Over 50’s

For those aged 50 and above who may struggle to secure traditional life assurance due to pre-existing health conditions, 50+ Easy Cover offers a solution. This policy is specifically designed to cater to older individuals who may have been declined by other life assurance providers.

Key Features of Life Assurance for the Over 50’s:

• Up to €25,000 Cover: This policy provides coverage up to €25,000, which can offer financial protection, even if it is less than other life assurance policies.

• Guaranteed Acceptance: No medical questions or health checks are required. This makes it easy for individuals aged 50 to 80 to qualify for life assurance.

• No Medical Questions: People with pre-existing conditions can apply, ensuring that they have access to life cover regardless of their health status.

• Accidental Death Benefit: For the first two years of the policy, only accidental death coverage is applicable. After two years, the policy covers all causes of death.

For older individuals or those with health issues who require life assurance, the 50+ Easy Cover plan can provide an affordable and accessible solution. However, it’s important to be aware of the restrictions during the first two years and ensure that the coverage meets your financial needs.

Life assurance is a vital financial tool that provides financial security for your loved ones when you pass away. There are several key reasons why having life assurance is essential:

1. Protecting Your Family’s Financial Future: Life assurance ensures that your family will be able to maintain their standard of living even after you are gone. This is particularly important if your family depends on your income.

2. Covering Debts and Expenses: Life assurance can help clear any outstanding debts, such as mortgages, loans, and credit card bills, ensuring that your loved ones are not burdened with financial obligations.

3. Providing for Children’s Education: If you have children, life assurance can help ensure that they receive the education they deserve, even if you are no longer around to fund their studies.

4. Funeral Costs: Funerals can be expensive, and life assurance can provide the necessary funds to cover these costs, alleviating financial stress for your family during a difficult time.

5. Maintaining Your Family’s Lifestyle: A life assurance payout can help your family maintain their quality of life, covering everyday expenses such as rent, utilities, and groceries.

• Evaluate Your Financial Needs: Assess your family’s financial situation, outstanding debts, and future needs, such as children’s education and mortgage payments.

• Consider Your Budget: Premiums can vary significantly depending on the type of life assurance policy you choose. It’s important to select a policy that fits your budget while still offering adequate coverage.

• Understand the Terms of Your Policy: Ensure that you understand the coverage limits, exclusions, and any waiting periods for certain benefits, such as accidental death coverage or specific illnesses.

• Seek Professional Advice: If you are unsure which type of life assurance policy to choose, consult with us today. We can help you make an informed decision based on your unique circumstances.

Life assurance is a key part of any comprehensive financial plan, offering financial protection for your loved ones in the event of your death. Whether you choose term life assurance, whole of life assurance, specified illness cover, or life assurance for those over 50, it is essential to choose the policy that best meets your needs. At BWFS, we recognise that life assurance can provide peace of mind, knowing that your family’s financial future is secure, even if you are no longer around to provide for them.

By securing life assurance, you are taking an important step in protecting your family and ensuring their financial well-being. If you’re unsure which policy to choose, take the time to evaluate your options, and discuss your options with us today. With the right life assurance policy, you can have peace of mind knowing that your loved ones will be cared for when you’re gone.