Can You Switch or Review Your Life Insurance Policy?
Absolutely. Just because you took out a life insurance or mortgage protection policy when you bought your home doesn’t mean you’re locked into it forever. In fact, many people don’t realise they can switch, just like you can switch your mortgage for a better deal.
A common misconception is that you have to stick with the same bank for both your mortgage and your protection policy, but that’s not true. You’re free to move your policy to another provider, and in many cases, it could be much cheaper.
If it’s been a few years since you took out your cover, now’s a great time to request a quote. You might be paying more than you need to—and switching could save you hundreds or even thousands of euros over the life of your policy.
And if you’re wondering whether you’re covered enough, it’s worth reading the signs that your life insurance might be too low.
Even better, in some cases, you may be able to increase your cover without needing to answer new health questions. Handy if your circumstances change but you want to avoid fresh medical underwriting.
Can I include Serious Illness Cover In My Life Insurance Policy?
Yes, you can add Serious Illness Cover to your Life Insurance or Mortgage Protection policy, which pays out a lump sum if you are diagnosed with a specified serious illness.
If you are adding Serious Illness Cover to your Mortgage Protection or Life Insurance, when the payment is made, the life cover amount is reduced accordingly. It is also called an accelerated serious illness cover.
Alternatively, you can buy Serious Illness Cover as a separate policy. It’s called Standalone Serious Illness Cover, and it means it is taken out as a separate policy and it is completely independent of any life protection you might purchase or already have. It is also sometimes called additional cover, separate cover, or double cover.
To understand better, read our detailed article about Serious Illness Cover, where we explain everything in depth.
Other Important Insurances For Homeowners
Serious Illness Cover: This policy offers protection by providing a lump sum if you are diagnosed with a specified serious illness. Learn more by exploring our Serious Illness Cover Guide.
Income Protection Insurance: Provides a regular income if you cannot work due to illness or injury. Learn more by reading our Income Protection Guide.
Health Insurance: This insurance provides cover for medical expenses, reducing the financial burden of healthcare costs for you and your children. Learn why health insurance is a must-have in Ireland.
Section 72 Insurance: It is important for homeowners because it’s designed to cover inheritance tax, so your loved ones won’t have to sell the family home or other assets just to pay a tax bill after you’re gone.
Section 73 Insurance: This insurance can be a smart move for homeowners who want to gift money or assets to their children in the future without incurring a hefty tax bill.
Pension Plans
Contributions to a Pension: Besides providing for retirement, pensions can sometimes offer a death-in-service benefit, which provides a payout to dependents if you die while employed.
Read our Retirement Guide to learn everything about pensions and retirement planning.
Don’t Let Taxes Take Your Home
When it comes to estate planning, many people don’t realise that a life insurance payout might be subject to tax, especially if you’re not married. For example, if you’re a cohabiting couple and not legally married or in a civil partnership, your partner could face a significant inheritance tax bill on your share of the home. In some cases, this could even force them to sell the property just to cover the tax.
If you have children, chances are you’ve thought about what would happen to them if you were no longer around. That’s why it’s so important to protect your children from potential inheritance tax on any property or assets you plan to leave behind. In some cases, the tax bill can be substantial, eating into the value of what you’ve worked so hard to build. One way to ease this burden is by planning ahead.
Transferring certain assets during your lifetime, where appropriate, can be a smart strategy to reduce or avoid tax liabilities later on. With the right advice, you can ensure your children are financially protected and receive the full benefit of what you’ve left for them.
That’s why proper estate planning is so important. There are solutions available, like a Section 72 life insurance policy, which is designed to help cover inheritance tax so your beneficiaries don’t have to pay it out of their own pocket. Whether it’s your home or other assets, the tax liability depends on your relationship and individual circumstances.
It’s always best to speak with a financial advisor who can guide you through the options and make sure your loved ones are protected.
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