Life Insurance in Ireland
A simple promise: if you die during the policy term, a lump sum is paid to the people you’ve nominated. That money can clear a mortgage, replace lost income, fund education – whatever your family needs.
Last reviewed by Debbie Cheevers, QFA, RPA · 30 June 2026
Who needs life insurance?
Families with dependants
If anyone relies on your income – a partner, children, an elderly parent – life cover replaces what you would have provided.
Last reviewed by Debbie Cheevers, QFA, RPA, 30 June 2026. Information is general and not personalised financial advice.
Homeowners with a mortgage
Mortgage protection clears the loan; standalone life cover does more – it leaves the family with money on top, not just a debt-free house.
Business owners & directors
Cover the business too: keyman insurance, partnership protection and Section 72 policies can protect a company or fund inheritance tax.
The three types of life cover
Term life insurance – the most common. You choose a sum (e.g. €300,000) and a term (e.g. 25 years). If you die within the term, the sum is paid. If you don’t, the policy ends with no payout. Cheap, simple, and right for most people.
Whole of life – covers you for the rest of your life, with a payout whenever you die. Useful for inheritance tax planning (Section 72) but considerably more expensive.
Mortgage protection – a special kind of decreasing term policy designed only to clear the mortgage balance. Required by lenders for most home loans.
Single, joint or dual life?
- Single life – one person, one payout.
- Joint life, first death – two people, one payout on the first death (typically used for mortgage protection).
- Dual life – two separate policies under one plan, each paying out on its own. Costs slightly more but pays twice if both insured people die during the term.
For couples, dual life is usually better value than joint life – the difference in premium is small and the cover is substantially better.
How much cover do you need?
There’s no single right answer – it depends on your debts, dependants, lifestyle and existing assets. A reasonable starting point is:
- Enough to clear the mortgage and other debt.
- Plus 10–15 years of household income for any dependent children, to give them time to grow up.
- Plus a buffer for education costs and funeral expenses.
We’ll work through this with you properly – the right number is usually more than people first guess and much less than insurers would happily sell.
A simple example
Single income family. €80,000 salary. €300,000 outstanding mortgage. Two children, 4 and 7.
- Mortgage: €300,000 (usually covered by mortgage protection)
- 15 years of household need: €50,000 × 15 = €750,000
- Education buffer: €100,000
Total standalone life cover suggested: around €850,000, alongside the mortgage protection.
Life insurance vs. mortgage protection – what’s the difference?
| Mortgage protection | Term life insurance | |
|---|---|---|
| Sum assured | Decreases as mortgage reduces | Stays the same (or can be indexed) |
| Who gets paid | The lender – clears the mortgage | Your nominated beneficiaries (family) |
| Required by lenders? | Yes, for most owner-occupier mortgages | No – optional |
| Typical cost | Cheapest type of cover | More than mortgage protection, but still affordable |
| Best for | Meeting the lender’s requirement | Replacing income and protecting family beyond the mortgage |
Most clients have both: mortgage protection because it’s required, and term life insurance because it actually protects their family’s lifestyle.
Tax-efficient life insurance for inheritance
Where there’s a likely inheritance tax (Capital Acquisitions Tax) bill on your estate, a Section 72 whole-of-life policy can pay the tax bill on death. The proceeds are exempt from CAT provided the policy is set up correctly under Section 72 of the Capital Acquisitions Tax Consolidation Act.
For lifetime gifts, a Section 73 savings plan can build a fund earmarked for paying tax on future gifts to children – again, exempt from CAT when used for that purpose.
When this matters
- Estate value above the relevant CAT thresholds for your beneficiaries.
- Significant assets in property or a family business that can’t be sold quickly to pay tax.
- Plans to gift assets to adult children during your lifetime.
How we set up your cover
- 1
Consultation & needs analysis
A 30-minute call to understand your family, finances, debts and existing cover — then we work out how much cover you actually need, not a sales target.
- 2
Market quote
We quote across the six leading Irish providers. Pricing for the exact same cover can differ significantly between insurers.
- 3
Apply & underwrite
We’ll guide you through medical declarations and chase the provider so cover starts as quickly as possible.
- 4
Annual review
Salary, mortgage, family – all change over time. We’ll check the policy is still right for you each year.
We work with Ireland’s leading life & pension companies
Frequently asked questions
What’s the difference between life insurance and mortgage protection?
Mortgage protection is designed only to clear your mortgage balance – the lender is paid. Life insurance pays a lump sum to your family. Most homeowners need both.
How much does life insurance cost?
It depends on age, health, smoker status, sum assured and term. A 35-year-old non-smoker can typically get €300,000 of cover over 25 years for under €25/month. Premiums rise with age, so younger is cheaper.
Are the proceeds taxed?
If the policy is set up correctly and the proceeds pass to a spouse, there’s no Capital Acquisitions Tax (spouses inherit tax-free). For other beneficiaries, normal CAT thresholds apply. A Section 72 policy can fund the tax bill itself.
Is there tax relief on premiums?
No – unlike income protection, life insurance premiums are paid from after-tax income and don’t qualify for relief.
Should I get joint life or two single policies?
For most couples, dual life (or two single policies) is better value than joint life. The premium difference is small, but the cover is much better – both lives pay out, not just the first.
Can I change my cover later?
You can usually reduce cover at any time. Increasing cover normally requires fresh underwriting (or an indexation option built in at the start). We’ll set you up so you have flexibility built in where it makes sense.
What if I have an existing policy?
Don’t cancel it before we’ve checked it. We’ll review the cover and pricing alongside new quotes. Sometimes the old policy is the better deal – sometimes there’s a clear saving.
Can a company pay for life cover for a director?
Yes – through schemes like keyman insurance, partnership protection, or company-paid death-in-service. Different tax treatments apply – we’ll structure it correctly.
Get a clear, jargon-free quote
A free 30-minute call is the easiest place to start – we’ll work out how much cover you need and quote across the market.