You can buy life cover through a financial adviser or direct from certain life insurers or banks which are in the same group as a life insurer.
If you buy through a financial adviser, he or she will earn commission on the premiums you pay.
A financial adviser should:
- Comprehensively assess your financial and insurance needs given your personal circumstances.
- Recommend an appropriate amount of cover in line with what you can afford.
- Identify a suitable policy, taking into account the benefits offered and terms, conditions of the policy and all other relevant considerations, such as the insurer’s track record on paying claims.
- Help you identify a suitable premium increase taking into account your current ability to afford the premiums and the likelihood that premiums will remain affordable for you after each annual increase.
- Guide you through the medical questions and engage with an insurer if your medical condition is viewed as more serious than you or your adviser believe it is.
- Balance affordability against the advantages and disadvantages of taking accelerated cover for disability or severe illness.
- Determine how much more cover you may need in future and whether you can get that cover though the policy without new underwriting.
- Advise you in future if an insurer launches a new feature or product that may better suit your needs.
You may have to have certain medical tests done – such as blood tests and cholesterol tests, or you may need to have your blood pressure taken or have an electrocardiogram (ECG). Your life insurer will tell you where to go for these tests or send a nurse to your home or office to do them.
You will not have to pay for these tests. The life insurer will pay for them.
You should get a quote and the adviser should give you a record of the advice which should include the material conditions of the policy that were pointed out to you and why one policy was regarded as the most appropriate for your needs.
It can take three to five weeks for your policy application to be submitted, for any medical tests to be done, and then for your cover to be granted.
If you decide to buy life cover direct from a life insurer through the company’s website or its telemarketers, remember:
- Cutting out a financial adviser may not necessarily mean the policy is cheaper. If the cover is offered after only limited questions and no tests – known as limited underwriting - it may prove to be more expensive. Read more What does it mean if cover is underwritten?
- Policies that offer bonuses or cash backs for your loyalty are, in terms of a code of conduct under the Financial Advisory and Intermediary Services Act, not allowed to create the impression that the bonus is free and should indicate if it is optional and express the cost of it and the impact on your premiums.
- Policies sold without advice are best if your life insurance needs are simple.
- Working out how much cover you need isn't impossible, but it is more difficult if your circumstances are more complicated – for example, if you have remarried or you have a business. Read more How much life cover do I need?
