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Insurance guide

Why you should take out life insurance

Why you should take out life insurance
Rob Flynn

Rob Flynn

Staff Writer

You could get life insurance cover in under one hour when you apply online on bonkers.ie.

Life insurance pays out a cash lump sum if you die during the term of the policy. It is one of the most important types of insurance cover available to you and your family because it helps to provide financial peace of mind should something unexpected happen.

Whether you’re looking for a single life, joint or dual life policy, or even life insurance with additional benefits like serious illness cover, we can help you find a competitive quote that meets your needs.

If you’re considering taking out a life insurance policy and are unsure of the many benefits it offers, make sure to keep reading to help further understand why the protection that life insurance provides is so important.

Insure what matters most

We all take out insurance on things that matter to us, such as our homes, our cars, and even on our gadgets. But many forget to insure the most important thing of all when it comes to you and your family - your life.

If your family or loved ones rely on you for financial support, giving them the gift of life insurance can be a welcome safety net after you pass, especially if you have more than one dependent or child in your care.

It’s possible to take out life insurance cover under a single life policy, where just one person is insured, or for both you and your partner with joint life or dual life cover. 

If you arrange a single life policy the benefit will be paid to the beneficiary named on the policy, while the benefit is usually paid to the surviving policyholder on a dual or joint life policy.

Check out the ins and outs of life insurance with our thorough guide right here.

Tax-free payment

Taking out a life insurance policy provides your partner or beneficiary with a tax-free lump sum after you die and can act as a regular income to support your family and loved ones.

Those who might inherit the money after your death may have to pay inheritance tax, however, depending on whether or not they are a direct family member. 

Take, for example, a life insurance policy of €200,000 over 20 years. If you die during the term of the policy a tax-free cash lump sum to the value of €200,000 would be paid out, with not a single cent going to the taxman.

Life insurance truly is the best gift you could give your loved ones, helping to ensure their financial security should the worst happen.

Plan for the future

Life insurance is a way of making sure your family has an income for as long as they need it after you're gone, as well as helping to ensure their financial stability and securing a good standard of living well into the future.

Life insurance also helps to soften the financial burden of any short-term and long-term expenses that will arise down the line, take for example funeral costs.

Few families have savings set aside for a funeral, with the average cost in Ireland well over €4,000. Taking into account that your family has also lost your income it becomes more important to acknowledge that life insurance really is an invaluable gift to leave behind.

Life cover can also be used to help meet the cost of much bigger expenses down the line, such as providing a lump sum towards the cost of third-level education for your children.

Having cover in place to protect your youngest child might mean taking out a policy for 20 years or more and can go a long way in helping to safeguard your children's education and future.

The gift of life insurance can also be used to cover expenses such as paying taxes, caring for a loved one, or simply providing supplemental income for your partner.

Pay off loans

While making sure your family is taken care of is your number one priority, you don’t want to leave them with the burden of having to pay off any outstanding debts or loans should you pass away, especially if they couldn’t afford it.

Taking out a life insurance policy helps to cover this cost and would help to pay off any outstanding balances that would otherwise have been taken care of with your income or salary.

It's important to note that some families will already have mortgage protection insurance in place to cover the cost of paying off a mortgage. However, a life insurance policy is invaluable when it comes to helping to pay off other loans such as for a car and can be easily covered and planned for in advance with a single or joint life insurance policy.

Take a look at the options available to you on bonkers.ie today.

Cover has never been cheaper

Usually when it comes to prices they only go one way - up. But one area where prices have held steady, or even fallen in recent years, is with life insurance.

As more of us are living longer and healthier lives, the cost of cover has gotten cheaper and in many cases will be far less than you might have expected.

For example a non-smoker in their late thirties, looking for €250,000 of cover over 30 years could expect to pay just €25 or so a month. Not bad when you consider the peace of mind and financial protection it will bring. 

Get cover in under one hour

Don’t forget, you can now compare the best quotes for life insurance on bonkers.ie. We even have our very own in-house insurance team who are dedicated in helping you find the best cover across Ireland’s main insurance providers.

Not only that, you could also get insured in under one hour when you apply online with us. This fast turnaround time is possible for those who are in general good health and return our electronic documents immediately.

You don’t have to sign any paper forms or spend time posting back documents to get your policy issued - a digital signature is all we need to complete your insurance proposal and get your insurance cover in place as quickly as you need it.

To apply just fill in some personal details online using our life insurance form and our comparison tool will produce a range of quotes for you in just seconds. Then simply choose the policy that's best for your needs and one of our team will be in touch with you to finalise your life insurance application and advise you on the next steps.

So, whether you need a policy for just you, or for you and your partner, or want a policy that includes additional protection like serious illness cover, one of our life insurance experts will be on hand to help you out.

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