Term Assurance

This is pure life insurance with no element of saving. It is the cheapest way of providing life cover. A basic term policy promises to pay out a lump sum if you die during the term of the policy - for example a policy might guarantee to pay out €100,000 if you die within the next 10 years.

For more information please contact our sales team at 014097090 or info@orca.ie

Whole of Life

With whole-of-life policies the benefit is paid on death no matter when it occurs.The insurance company undertakes to pay the agreed sum - plus bonuses if you choose a with-profits policy - whenever you die.This contrasts with term assurance, which is pure protection. There is no element of saving since no benefit gets paid unless you die within the agreed term of the policy.

Obviously the premiums payable for a given amount of cover are higher for a whole-of-life policy because cover is likely to be provided for a longer period.You can decide to pay premiums up to death or for a specified period, for instance until you are 65. In most cases the premiums are reviewed (and possibly increased) every so often, maybe every 10 years.

After a minimum number of years the policy may acquire an encashment (surrender) value. Alternatively you may be able to stop paying premiums and leave the policy in force, possibly at a reduced level for a limited period of time.Whole-of-life policies are often included in combination policies offered by insurance companies. Special whole-of-life policies can be used to provide for the payment of inheritance tax.

For more information please contact our sales team at 014097090 or info@orca.ie

Endowment policies

Endowment policies combine some insurance cover with a way of saving for the future - for retirement, educating the children, or even marriage.Some of the premium goes to buy a protection policy that will pay out a benefit should you die while the policy is in force. The remainder of the premium is invested on your behalf.

The policy may run for a fixed number of years or it may be open-ended. The proportion of each premium invested varies from policy to policy and from individual to individual. The older you are, the more expensive is the protection part of the policy, so proportionately less of your premium is invested.

The twin objectives of protection and investment, which are combined in an endowment policy, are best considered separately. Be clear about what you need from the policy and keep the distinction between protection and saving in mind. They are two separate objectives and they need to be considered separately.

Income Protection

Income-protection policies, sometimes known as income-continuance or 'permanent health insurance', protect you against loss of earnings if you are unable to work due to illness, injury or disability.Many employers provide a group scheme to provide such cover for members, possibly together with a company pension scheme.

Premiums depend on:

• your age
• gender
• occupation
• the amount of cover
• the term of the policy
• whether or not the insurance company guarantees that premiums will not be increased during that term
• how long you have to be off work before benefit is payable; and
• if the benefit is index-linked (increases in line with inflation or wage rises)
• There is usually a period of between 13 and 26 weeks that you are off work where no benefit is paid, but that may be extended up to 1 year.

The maximum starting benefit is usually three-quarters of your salary less any social welfare benefit that may be payable. Premiums for income-continuance policies are allowed in full for tax relief up to a limit of 10 per cent of income. But unlike most other life-insurance policies the benefits received are subject to income tax under the PAYE system.

Serious Illness

Serious illness cover provides a lump-sum payment if you are diagnosed as suffering from a serious illness or medical condition covered by the policy. Payment of the amount insured is usually only dependent on a confirmed medical diagnosis. It is generally not dependent on any loss of income or the level of medical expenses incurred.

You should note, however, that payment of benefit is usually subject to certain exclusions; for example an illness or medical condition caused by self-inflicted injuries or participation in dangerous sports or hobbies or non-invasive cancers.

For more information please contact our sales team at 014097090 or info@orca.ie

Pension Term Assurance

The aim of Pension Term Assurance is to provide money to replace a person's income if they should die before retirement. To encourage people to cover themselves for this, the Government offers tax relief in the same way that they encourage people to fund for a replacement income after retirement through pension planning.