Life Insurance Policy FAQ's
Questions We Hear
Paid out in the event of your death (or sometimes on the diagnosis of terminal illness), life cover is intended to provide your family with a lump sum to clear any of your outstanding debts (such as mortgages, loans or credit cards). It can also sometimes provide money to cover funeral costs or other expenses.
- Why should I consider life insurance?
If you have no dependents and do not have a partner, then you might decide there is little point in life insurance and serious illness might be the policy for you. Life insurance, although always beneficial to your loved ones, is primarily aimed at those people whose death would cause their family to struggle financially without their income. It provides an assurance that, in the event of the worst eventuality, your family will not struggle financially. Most mortgage lenders insist on life insurance cover as part of their lending policy and on mortgage drawdown.
- Who can I contact about my policy?
If you need any help or want to contact us, we have a dedicated life insurance team available on 1890 30 20 20
- How much life insurance cover do I need?
The level of life cover you opt to take is very much up to you, and is especially suitable if you are intending to simply clearing any borrowings in the event of your death or provide your family and dependents with cash sum to cover future day to day costs. If you need to take a mortgage protection policy, the level of cover is arranged in accordance with the balance of your mortgage; this means the cover may reduce in line with your repayments against your home loan.
- What kinds of policy can I take out?
You can take out life insurance that covers you for the term of your mortgage, which is usually 20-25 years, or link the term to the age of your dependents, perhaps when they turn 22 to 25 years. The length of term is up to you but the longer you insure your life for, the greater the premium will be but the earlier you apply the less significant this is. A 25 year old can get 150K for as little as €10 per month based on smoker status and health.
- How long do I need cover for?
It really depends on your reason for applying for cover. Personal Life insurance is taken out to protect the financial security of your dependants. For this reason the most common policy duration is 20 to 25 years or until your dependants have completed full-time education. For Mortgage related Life Insurance it must be for the term of the mortgage.
- Am I eligible for life insurance?
In short - anyone can apply, in truth - the less risky are accepted. All customers who want to arrange life insurance will need to answer questions about their health, medical background and lifestyle. Based on the answers to these questions, you may be required to undertake a medical examination and interview with a qualified doctor or nurse.
Each insurance company has its own criteria for acceptance based on risk, and not everyone will be accepted for life cover. You must declare any health issues on your insurance application, as failure to do so could result in your policy being invalidated. This could have serious implications in the event of your death, meaning your loved ones are left with nothing.
- What affects the price I pay for life insurance?
Insurers calculate your premium based on the level of risk you pose, and they use a number of factors to model this cost, including the term of the policy you require, the amount you want to cover plus your medical history. Your age will also play a factor, as will being a smoker.
- Will the amount I pay for my policy change?
No, we offer guaranteed premiums, which means that your premium will never change during the policy term, provided it is paid on time and in full and inflation option is not chosen.
- How long before I am covered?
Once we have received your application, we can process your policy within 5 working days (assuming all details provided are correct). However, if you require your policy urgently, we can provide a decision on this within 4 hours.
If you have had a history of ill health (e.g. high blood pressure, a recent operation etc) on the application, the insurance company will contact your GP or request a medical report. This will delay your application by approximately ten days. So its worth getting your application in as soon as possible.
- How do I apply?
You can request a free life insurance quote online. If you are happy with the quote, proceed with the process which will ask some medical questions. You can do this over the phone or we can send it in the post/email to you.
- When do I receive my life insurance policy?
When your application has been accepted and you advise us of a start date, the policy documents are posted directly to you or if it is assigned to the bank, please put the address of the bank onto the application (under dispatch documents address) and we will send the original document directly to the bank.
- Change of mind / cancellation?
When you receive your policy document you are entitled to a 30 day 'cooling-off' period. This allows you to cancel your policy and a full refund will be given.
- Will you cover me if I already suffer with a specific medical condition?
You must tell us at the time of your application. The insurer may then write to your doctor or request that you attend a medical examination before a final underwriting decision is made.
- If I am a smoker does this affect the premium?
Yes. If you are a smoker, your premium will be higher than that of a non-smoker.
- Is a medical required?
A medical is not required in all cases. However, if you have an existing medical condition, the insurer will request a medical report from your GP.
- How soon should I apply for my mortgage protection insurance policy?
You should apply for your life insurance as early as you can, but no longer than three months in advance of requiring cover to be in place. In the case of a mortgage protection insurance policy, you will need to give the bank your policy documents a couple of days before you are going to draw down the mortgage with them.
As soon as we receive your completed application form we will submit your details to the life insurance company to be processed. If the application form is completed correctly and there are no underwriting requirements, your application will be accepted and the policy documents will be issued in a couple of days.
Sometimes the life insurance company will require clarification of some medical details. This could involve attending at your GP, or getting a medical report. If a report is required it could take a week or two longer to get your application fully processed.
- Are there any terms and conditions for the life insurance discounts? What do I need to know?
- Occasionally we may offer discounts off your monthly premium.
- They can be applied for the full term of your policy, subject to you maintaining your monthly payment by direct debit.
- Discounts will only apply to new policies and cannot be used in whole or part to replace or otherwise alter an existing policy .
- Monthly premium offers are subject to change without notice; please contact one of the Chill Life team for specific terms and conditions that apply to any discounts we may have at present.