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Life Insurance Payouts Question

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  • 11-02-2007 2:21am
    #1
    iMax
    Closed Accounts Posts: 3,489 ✭✭✭


    Not sure if this is the right place for this question, if not please feel free to move it...

    I'm in the process of researching life insurance for myself as I'm self employed. If I was to get a couple of policies rather than one large one, would they all pay out ?

    i.e. If I got 5 x €200k policies with different companies rather than 1 x €1m from one, would all the policies pay out or would they get together & decide on a nominal payout ?

    Also, as I have mortgage protection insurance, I assume it's no longer necessary to have this as I would have a policy that would by far exceed the value of the mortgage ?

    One other thing, is there a policy that will pay out a lump some on death or on reaching a specific age (e.g. age 60) ?

    TNX in advance


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    #2
    iMax
    Closed Accounts Posts: 3,489 ✭✭✭iMax


    bump


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    #3
    Guess_Who
    Registered Users Posts: 409 ✭✭Guess_Who


    AFAIK they should all pay out but you're going to have to justify to each of the insurance companies as to why you need that much cover. Assuming you are not over insured there'd be no reason for them not to pay out.

    I don't know if there's a policy that will pay out on death or at a certain age but I worked in Insurance in the UK not Ireland so maybe an Irish company do one.

    Have you considered using an Independent Financial Advisor? There are insurance companies that don't really advertise direct to the public so you could be missing out on some good options.


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    #4
    iMax
    Closed Accounts Posts: 3,489 ✭✭✭iMax


    Thanks Guess Who.


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    #5
    threebeards
    Registered Users Posts: 1,040 ✭✭✭threebeards


    iMax wrote:
    If I was to get a couple of policies rather than one large one, would they all pay out ?

    In the event of your death within the term of a policy(ies) and assuming full disclosure at the point of proposal, there's no reason why they wouldn't all pay out.
    iMax wrote:
    If I got 5 x €200k policies with different companies rather than 1 x €1m from one, would all the policies pay out or would they get together & decide on a nominal payout ?

    It doesn't matter whether they're all from 1 company or 5 different companies. There would be no such thing as a nominal payout from a number of different companies.
    iMax wrote:
    Also, as I have mortgage protection insurance, I assume it's no longer necessary to have this as I would have a policy that would by far exceed the value of the mortgage?

    It depends on your individual circumstances i.e. single/married; dependents or not and your level of income thereon. I'm assuming that as you're looking for such a level of cover that there are dependents? In relation to your mortgage, your bank will most likely have an assignment on the existing policy and may require assignment of a new policy before releasing the original assignment.
    iMax wrote:
    One other thing, is there a policy that will pay out a lump some on death or on reaching a specific age (e.g. age 60)?

    You could put in place a Whole of Life policy which has a level of savings attaching to it and will have a sum assured that will pay out on death. This tends to be quite a bit more expensive than normal term assurance. There's no specific life assurance product that will pay out on a specific birthday i.e. in your example of 60.


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