Life insurance is a financial product that protects your family after your death by paying the value of your policy.

When you buy life insurance, you purchase a policy and pay premiums every month to keep it up-to-date. If you die while you have active life insurance, your family or a nominated person receive the payout or death benefit.

What is life insurance and is it right for you? Keep reading for a quick introduction.

Who Buys Life Insurance?

The average life insurance policyholder has people in their life who depend on their income. Often, this means families with young or school-age children, but it can relate to anyone at any age.

Life insurance offers benefits for almost everyone, but you may not need your own policy. Before buying a personal policy, ask your employer to see if you already have coverage either through a life insurance benefit or a pension plan.

Is Mortgage Protection the Same as Life Insurance?

Mortgage protection and life insurance are two different products.

Lenders require mortgage protection when you draw down on your mortgage to protect the lender in case you die. The insurance protects your family by default.

Life insurance pays a cash lump sum of your choosing to your survivors. They can use the lump sum for anything they want. Many people use it to:

  • Pay funeral expenses
  • Replace a lost income
  • Reduce remaining deb

Do I Need a Medical Exam to Get Life Insurance?

Life insurance policies favour young, healthy people because they are a low-risk group. If you are under 50, generally healthy, and applying for a typical coverage amount, then you can apply for life insurance online.

Depending on your policy, you may need your GP to fill in a medical questionnaire.

However, the insurer may require a medical exam if you:

  • Are over 55
  • Have a history of illness
  • Want a large policy (usually over €500,000)

Most of the time, an insurer will accept your application with your GP’s blessing. However, if you are in poor health, an insurer may choose to refuse cover. In this case, you can discuss the exam’s findings with your GP, appeal to the Chief Medical Officer at the insurance company, and ask for quotes from other life insurance companies.

What Can You Spend Life Insurance On?

When you die, your family receives a death benefit in the form of that they can use for anything they like, including to replace a lost income, pay off debt, cover funeral costs, pay for taxes or expenses, or simply provide a cushion for your family or peace of mind for you.

If you have a mortgage and mortgage protection insurance, your family won’t need to pay off the mortgage, so you can exclude mortgage concerns from your policy.

How Can I Apply for Life Insurance?

You can start the application process of life insurance online. Because there are five insurers and many underwriting factors involved, it is smart to get quotes from each insurer and consider multiple levels of coverage before signing up for a plan.

Is life insurance the right choice for you? Start the process with Best Insurance Quotes and get a quote in under 30 seconds.