If you died tomorrow…
Would your family be okay financially?
Would the rent be paid — next month, next year?
Would your kids be looked after — not just emotionally, but financially?
Would your partner be forced back to work immediately, just to keep things going?
Most people avoid thinking about death.
And even fewer want to talk about life insurance.
Because it’s confusing. Full of jargon.
And — let’s be honest — it often feels like someone’s just trying to sell you something.
I’m Kevin Elliott — a financial planner based in Ireland.
I’m not tied to any life company or commission-based product.
I work for clients — not providers.
And what I see, again and again, is this:
People either have way too much cover… or not nearly enough.
And they have no idea which one it is.
So let’s fix that.
This guide explains — in plain English — how life insurance in Ireland really works, what to watch out for, and how to figure out what you actually need.
Myth-Busting: 4 Common Misconceptions About Life Insurance
Myth 1: Only the breadwinner needs life cover.
Wrong. A stay-at-home parent may not bring home a salary, but they provide enormous financial value — childcare, cooking, cleaning, school runs.
According to Royal London Ireland, the estimated annual value of a stay-at-home parent is €57,140. If something happened to them, would you be able to take over — or pay someone else to?
Myth 2: “I rent, so I don’t need life insurance.”
If your family depends on your income to pay rent or bills, life cover is still essential — regardless of whether you own or rent your home.
Myth 3: “My job already gives me cover.”
Some employers offer death-in-service cover, usually 3–4x your salary. But leave the job? The cover disappears.
Myth 4: “I’m too young to worry about this.”
Actually, your 20s or 30s are the best time to get life cover. You’re healthier. Premiums are lower. And you can lock in a good rate for decades.
Life insurance isn’t just for parents or homeowners. It’s for anyone whose absence would create a financial gap.
The 3 Core Types of Life Cover in Ireland
1. Term Life Insurance
The simplest and most cost-effective option. You choose a term (e.g. 20 or 30 years). If you die during that term, your family gets a lump sum. If you don’t, the policy ends — no payout.
But remember: The goal isn’t to cash in. It’s to protect your family.
A 35-year-old non-smoker might pay just €20/month for €500,000 in cover. The same amount in whole-of-life cover? Over €150/month.
2. Whole-of-Life Insurance
Guaranteed payout — but at a cost. Premiums are often 5–10x higher than term cover.
Many policies include an investment element… with high fees and slow growth. And you don’t get both the investment and the death benefit — just one.
Whole-of-life can work for estate planning (e.g. to cover inheritance tax), but most families are better off with term insurance and separate investments.
3. Mortgage Protection
Required by most lenders. This is term cover tied to your home loan.
If you die before the mortgage is paid off, the policy clears the balance. But the payout goes directly to the bank, not your family.
It doesn’t help with bills or replace your income. So it’s not a substitute for full life cover.
Related — But Not Life Cover: Illness Cover vs. Income Protection
Specified Illness Cover
Pays a lump sum if you’re diagnosed with a listed illness like cancer or stroke. Premiums are high — because illness is more common than death before retirement.
Income Protection
Replaces a portion of your salary if you’re too sick or injured to work.
It’s tax-deductible at your marginal rate — so a €100/month policy might only cost €60 after tax.
If you’re self-employed or have no sick pay, this is often more important than life cover.
These are valuable — but they’re not life insurance.
What Type of Life Insurance Is Best for You?
Start with your goal.
If your main concern is protecting your family’s income — term cover is the best starting point. It’s ideal if you’re:
- n your 20s to 40s
- Raising kids
- Paying a mortgage
- Building toward retirement
Whole-of-life insurance only makes sense for specific estate planning needs.
Mortgage protection is essential if you own your home — but it only protects the bank, not your family’s lifestyle.
If you’re self-employed or have no income protection, start there. Statistically, you’re far more likely to get sick than die early.
The best cover is the one that gives you peace of mind — not the biggest commission to a salesperson.
How Much Life Cover Do You Actually Need?
Let’s run a quick example.
- Monthly family spending: €3,500
- Income that would still come in: partner’s salary (€800) + rental income (€1,000) = €1,800
- Shortfall = €1,700/month or €20,400/year
- Duration of support: until retirement (e.g. 25 years if you’re 40 now)
- Cover needed = €510,000
That’s a real, personalised number. You can also use quick rules of thumb:
- In your 30s: 20x your income
- 40s: 15x
- 50s: 10x
But nothing beats doing the actual math.
And make sure the premium is affordable — the best policy is the one you can keep.
What Cover Might You Already Have?
Mortgage Protection – Usually required for homeowners. Covers your mortgage only. The payout goes to the bank.
Death-in-Service (via employer) – Often 3–4x your salary. Helpful, but it disappears if you change jobs.
Pension Death Benefits – Some older pensions offer a small lump sum or return of contributions. Often overlooked.
Before taking out any new cover, know what you already have — and what gaps need to be filled.
What to Watch Out For
- Bundled extras like illness cover or indexation can double or triple your premium. Only include what you truly need.
- Payout structure: Lump sum vs. monthly income — each has pros and cons. Understand the difference.
- Rising premiums: Some policies increase over time; others are fixed. Make sure you know what you’re signing up for.
- Sales incentives: Ask if your broker is tied to one provider or shopping the whole market.
And remember — you have a 30-day cooling-off period on all life insurance policies in Ireland. You can cancel with zero penalty.
Take the 10-Minute Life Cover Challenge
Here’s a simple challenge:
Take 10 minutes today and figure out:
- Your monthly household expenses
- Income that would still come in if you were gone
- Multiply the shortfall by how many years your family would need support
That’s your number.
And if you’re not sure where to start — or if you’re over- or under-insured — I can help.
This isn’t about pushing products.
It’s about making sure your family is protected in the simplest, smartest way possible.
I empower people to take full control of their finances, guiding them step by step towards building, growing, and preserving true wealth.
About the Author
Kevin Elliott is a Financial Planner and quantitative finance expert with over 18 years of experience in global financial markets.
He has worked with top-tier institutions such as Bank of New York, Bridgewater Associates, RBS, CIBC, UniCredit, and Bank of America, where he served as Director in New York.
Holding a BSc in Economics and Finance and a Graduate Diploma in Financial Planning from University College Dublin, along with an MBA from Imperial College London, Kevin combines deep technical expertise with a passion for personal finance and wealth building.
Kevin is committed to helping individuals take control of their finances, invest wisely, and build long-term wealth. With a knack for simplifying complex financial concepts, he provides actionable insights on investing, retirement planning, and financial independence.
Whether you’re a beginner looking to start your wealth journey or a seasoned investor fine-tuning your strategy, Kevin offers practical guidance, expert analysis, and proven strategies to help you achieve financial freedom and security.
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