Rockwell Insurance are a Financial Brokers …………….
A Financial Broker is an expert in financial and pension matters who works with you to understand your financial goals and helps you create a plan to meet those goals. In helping you to make a decision about protecting your dependants from the financial impact of your premature death, your Financial Broker will research your options.
The two key decisions you will need to make before taking out life insurance cover:
- How much cover do you need?
- Which type of cover is best suited to your needs?
Your Financial Broker will be able to explain the choices available to you in simple language allowing you to make an informed decision. They can guide you on the level of cover you need and the best type of cover for you, based on your personal and financial circumstances.
They will then help you through the process of setting up your life insurance cover, help you to make sense of the cover provided and the restrictions and limitations of such cover.
Ultimately, your Financial Broker will ensure you choose the cover and product best suited to your needs and circumstances.
Peace of mind for you and your family! We can’t prevent accidents from happening or stop a loved one from falling ill, however, we can protect ourselves and our loved ones from the unfortunate financial burden that usually follows such events by having an appropriate insurance policy in place. Your policy will usually pay out a either a lump sum or staged payments which can give us all peace of mind that we don’t leave behind a financial burden when we die, get sick or have an accident and cannot work for a time.
Your monthly life insurance premiums will depend on a number of factors:
- How old you are when you take out the cover
- How long you want the cover for
- The level of cover you want, and whether you want this cover to increase annually, say 3% per year
- Your general health
- Whether you smoke or not (smokers will be charged more than non-smokers for the same cover)
- What additional benefits and options you want to add on
Remember: Extra benefits may be added to a basic term policy for an extra cost. Some of these benefits could include: serious illness cover, where you could make a claim if you were diagnosed with one of the serious illnesses covered; index-linking, where your cover increases in line with inflation each year; and a conversion option, which allows you to convert your policy into a new policy before the end of the term without having to prove your good health.
Insurance companies will not usually request you take a medical examination unless you have a history of illness, you are over a certain age or you are applying for a large amount of cover on a life insurance policy.
Note: Life Insurance policies will generally not pay out if your death is caused by a medical condition that you were aware of when you first applied for cover and did not disclose to the insurer before your policy started.
You must fill out the application form correctly, disclosing all material facts about your health and circumstances. A material fact is one that is likely to influence the acceptance or pricing of the cover by an underwriter. If you fail to disclose a key fact you could render the policy void and the life cover would not be paid on your death. If in any doubt, disclose the fact. Your financial Broker is experienced in completing these application forms and will be on hand to assist you with any queries.
With life insurance, you have a number of options: you can arrange cover for a limited period, called ‘term life insurance’ or cover to last throughout your life, called ‘whole of life’ cover. You can also opt for a ‘joint policy’ or ‘dual-life policy’ with your spouse/long-term partner or joint borrower. There are also a number of optional extras you could add to your policy, including: conversion, indexation and income beneﬁt.
Term life insurance: Life insurance policies pay a lump sum to your named beneﬁciary or your estate if you die during the term of the policy. Term life insurance is the most straightforward and one of the most aﬀordable forms of life insurance. For example: you might take out a term life insurance policy on your own life for €100,000 over 10 years. If you die within 10 years (the term), the policy pays out €100,000 to your dependants. If you don’t die within the term of the policy, no beneﬁt is paid out and the policy ends.
Whole of life insurance: Whole of life insurance guarantees the payout of a lump sum whenever the policyholder dies, so long as the required monthly premiums are maintained. Premiums for whole of life cover are more expensive than ‘term life insurance’ as the cover can potentially run for the whole of your life.
With whole of life cover, some of your monthly premiums may be invested by the insurer into investment funds. This exposes you to the risk of your premiums increasing. Some companies oﬀer guaranteed whole of life rates. This means the premium will not increase for the same level of cover throughout your life and the policy and life cover will remain in force as long as you pay the premium.
Joint Policy/Dual Life Policy: If you are in a relationship and have young children, it may be worthwhile considering a joint life policy. This covers two people on the same policy and could pay out a lump sum when the ﬁrst of you die (a joint life policy) or a separate lump sum on the death of each of you (a dual life policy).
Conversion: If you add a conversion option to a term assurance policy you can renew or extend the term of your policy at a future time for a cost appropriate to your age and the terms oﬀered by the company at the time, regardless of your state of health at that time. This protects you in case your health deteriorates and you can’t get cover in the future. Make sure you talk to your Financial Broker about the terms of conversion – when can conversion be exercised and are there restrictions on the options you can select on conversion?
Indexation: This allows you to guard against inﬂation eroding the real value of your cover over time. Premiums and cover increase annually at your policy anniversary date. Pay attention to the rate of increase in premium versus the rate of increase in cover. Some policies have a cheaper premium to begin with but have a higher rate of increase in premium over time.
Income Beneﬁt: You may prefer to have a beneﬁt paid as an income to your family rather than a lump sum (or in addition to a lump sum). This may be appropriate if you have a young family and need to provide for their day-to-day expenses until your children reach maturity.
Your Financial Broker can advise you on all of the options and their costs to help you to select the most suitable plan for you and your family.
The deferred period is the amount of time you have to be out of work due to sickness or disability before a claim becomes payable.
When taking out your policy, you choose the deferred period you think would suit you best; there can be significant differences in premiums based on the choice of deferred period. Cover with a shorter deferred period would typically cost more than a longer deferred period. For example, if you choose a deferred period of 8 weeks it will cost more than if you choose 13,26 or 52 weeks.
Before you make a decision on the deferred period, check if your employer offers sick pay and if so, how much and for how long. This will help you to avoid over-insurance, which can happen if your employer continues to pay you past the deferred period.