AIB brings you a handy guide to the types of Life Insurance you may need if you have children.
AIB’s Life Insurance Series: 1.4 Children
As part of our series on Life Insurance, we look at what type of life insurance cover you might need if you have children.
This is the most common time that people think about life insurance, when they have dependants and the average number of children per family in Ireland is 1.4*.
How would your family cope financially if you were to suffer from a serious illness or die? You might need to think about costs such as childcare, education and other financial needs your family might have. Your family could use the lump sum from life insurance to pay the mortgage, pay off bills and it could provide them with an income at a time when they need it most.
If you have children, you may need the following types of cover:
Term life insurance: This is life insurance that gives you cover for an agreed and specified time period. A cash lump sum is paid out in the event of death during this time.
Specified illness cover: This covers you in the event that you or your partner become seriously ill or permanently disabled. A cash lump sum payment is paid to you on your diagnosis of one of more than 38 conditions.
Income protection insurance: This provides you with income replacement if you find yourself unable to work after a certain period of time as a result of an injury or illness.
*The statistics quoted are from the Central Statistics Office (CSO) 2011.
Life Insurance products are provided by Irish Life Assurance plc. Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc for life and pensions business. Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.