Life insurance is a type of insurance policy that provides financial protection to your family in the event of death. Such payment can help clear outstanding debts and gives your family money to live off, so that your family can continue to pay bills and living expenses.
It’s up to you how much life insurance cover you want. At MelitaUnipol Insurance Brokers we offer various types of cover that are mainly focused on
Decreasing / reducing term
As the title suggests, the sum assured is reduced annually in line with your loan. Such a plan is usually issued to pay off your mortgage in case of death. This is the cheapest option whereby the premium is at a fixed rate taking into consideration only the outstanding amount with the bank. For example: A loan of €100,000 is granted. Five years into repayments, the policyholder would have paid off €20,000 but passes away in the same year. The policy will pay off the remaining €80,000 due to the bank only.
This is a relatively low cost life assurance policy issued for a predetermined period of time. It’s there to protect your family from an early or ultimately death of a key person. Such as in the case of existence of long term financial commitments e.g. bank overdraft. This is more expensive than a decreasing term policy as the amount payable upon death remains the same, irrelevant of the amount outstanding with the bank. For example: A loan of €100,000 is granted. Five years into repayments, the policyholder would have paid off €20,000 but passes away in the same year. The policy will pay off the remaining €80,000 due to the bank and the €20,000 (already paid off) to the heirs.
Savings / Endowment
This policy provides the best of both worlds: a decreasing / level term policy with a savings term element to it or else purely savings. Other examples of pure savings include:
- Child Savings Plan
- Retirement Policy
Quotes are initially an indication only and may vary. Applications are subject to medical underwriting where the application would be reviewed prior to final acceptance / declinature.
Documents required from you when applying for a life insurance policy:
- ID Card;
- Bank Sanction letter;
- Utility bill / government correspondence as proof of residency;
- Medical certificates (if applicable);
When applying for a life insurance policy, one must keep in mind that a standard life insurance policy may an average of 5 working days (10 working days should medicals be required) from when all documentation is in hand.