Every care is taken to ensure that the information in this document is clear and accurate. However, no responsibility is taken for errors or omissions. If any conflict arises between this document and the Policy Conditions as per the Policy Document, the Policy Conditions will apply.
This FAQ document is meant as a guide and individuals should consult relevant insurance company literature or contact a representative of SmartQuotes where clarification is required.
Further information is available on our Terms of Business.
For information relating to other products such as Pensions, Investments etc please go to the relevant page on our website.
Home insurance transacted via SmartQuotes.ie is placed with Kennco Underwriting Limited and Cover Centre Insurance Limited. Full details including policy documents can be found at Household Policy Docs
Home Insurance that cannot be transacted with Kennco Underwriting Limited (due to not meeting criteria) is placed with Mercury Insurance Brokers, our partner brokers. We will provide you with a copy of policy documents by email/ post with all the relevant details prior to policy issue.
What exactly does Income Protection Cover?
An Income Protection Policy will provide you with an alternative income if you are unable to work due to illness, disability, injury or sickness. Minimum social welfare benefit is paid for employees (currently €188 per week for a single person) would this be enough to pay your mortgage, household bills and maintain your lifestyle?
In the event of you being unable to work, the relevant insurance company will pay you the agreed benefit monthly.
How Much Income Protection do i need?
An Income Protection contract will provide you with an income if you are unable to work due to illness, disability, injury or sickness. The maximum income that can be provided is 75% of your salary less State Illness benefit of €9,776 per annum for employees
For an example an employee on €50,000 per annum can insure a maximum level of income of €27,724. For the same individual being self employed this increases to €37,500.
In both cases the total income on payment will be the same as the employee will get the state benefit of €9,776 per annum. The self employed individual will not get the state benefit.
Income Protection cover is a very important cover although one that is often overlooked. The level of cover you choose should fit your budget as some cover is better than none at all. It is probably a good idea to see what income you need to pay the essentials in life such as Mortgage, Personal Loans, Food Costs, School Cost, Insurance Cost and Utility Bills.
Remember there is tax relief available at your marginal rate.
How do I know what sick pay I get from my employer?
Like all insurances it is important that you are not over-insured. Ask your employer what the companies sick pay arrangements are and use that as a starting point to deciding on the most suitable level of cover.
Income Protection can seem complex but doesn't have to be. Call one of our experienced team on 01 498 0005 and we will be happy to assist you.
What tax relief is available on premiums
Tax Relief is available on premiums paid at your marginal rate (subject to conditions) It is possible to claim tax relief on premiums paid in two ways:
For further information please see www.revenue.ie or contact SmartQuotes.ie
My wife works in the home. Can I cover her?
Currently only one provider in the market offers this type of cover, Aviva.
Keeping a home is still work, Aviva recognise this and if you are unable to perform your household duties, they will pay you a benefit of €15,000 per annum.
Aviva also provide cover for the same amount with the same conditions to full time carers i.e. looking after an ill, disabled or elderly relative without pay.
For homemakers, and unpaid carers, the 'work tasks' definition of disability will automatically apply. Please ask one of the SmartQuotes team for further details
How is this different to a Specified Illness Policy?
Specified Illness only covers a specified number of illnesses where as Income Protection covers any illness, injury, accident or disability that prevents you from working (except in the case of work tasks cover).
Specified Illness pays a once off lump sum and your Income Protection Policy pays a regular income until you are able to return to work or until the end of the policy term.
There is no tax relief available on Specified Illness, however you can claim tax relief at your marginal rate on Income Protection premiums.
You can only claim once on a Specified Illness policy, with Income Protection there is a multiple claim facility so you can claim as many times as is necessary.
How soon can I get access to this Income if I am out of work?
The income will be paid after your chosen deferred period of 4,8,13, 26 or 52 weeks. This is also known as the deferred period.
How long will you pay the benefit if I am out of work?
The Income Protection Policy pays a regular income until you are able to return to work or until the end of the policy term.
How many times can I claim on this policy?
You can submit claims on your Income Protection policy as many times as you require benefit, right up until the end of the policy term.
What is indexation?
This option allows you to increase your life cover in line with inflation. The indexation rates vary between providers and clients should always ask what indexation rate applies to their premium and their benefits. In general individuals should look for an indexation option where the benefit and premiums increase at the same rate, which although more expensive in the early years will usually work out cheaper during the life of the policy.Please contact us if you would like an illustration of this for any particular indexing quote
If I am out of work, will I have to pay my premium/will the premium still be deducted from my account?
You do not have to continue paying premiums while you are receiving an Income from your policy. This is called waiver of premium benefit.
What is the difference between Guaranteed and Reviewable Rates?
Your premiums can be either guaranteed (will not change during the term of your plan) or reviewable (will stay constant for the first 5 years of the plan and subject to review thereafter)
What occupation class am I?
We have provided a New Ireland occupation guide for illustrative purposes. The occupation classes can vary between insurer. Please call the office on 01 498 0005 for clarification.
Life Assurance FAQ’s (including Specified Illness Cover and Mortgage Protection)
A Life Assurance policy provides a fixed amount of cover for a fixed term of years. If you die during the term of the policy, the amount you are covered for will be paid to your estate as a lump sum. This type of cover provides you with the peace of mind that if you die, your family will not have to struggle financially. You choose the level of cover you need and the period that you want the cover to last.
SmartQuotes.ie offer two types of life assurance policy:
- Term Life Assurance
- Mortgage Life Assurance
We also offer Specified Illness Cover, which can be combined with both Life Assurance and Mortgage Life Assurance for an additional cost. Further details on Specified Illness Cover are included in this guide below.
With Life Assurance, the amount of cover you choose at the start of the plan will remain fixed over the term of the plan. The premium you pay is also guaranteed to remain fixed throughout the term. Options for indexation are available and are described in more detail below.
Mortgage Life Assurance (also known as Mortgage Protection) ensures that if you die during your mortgage term the remaining balance on your Mortgage will be repaid (this assumes a maximum interest rate of 6%). Mortgage Life Assurance is suitable for capital and interest mortgages.
Life Assurance policies are not designed to be a savings fund. At the end of the term, you stop making payments and your cover ends. It is also worth noting that if you stop making the monthly payments, the cover will cease and again there is no cash value.
There are also whole of life policies. This type of life assurance policy covers you for your whole life. It pays out a benefit when you die whenever that happens as long as the policy is still in force. The benefit is not usually fixed and can vary over the life of the policy depending on the performance of the investment fund used by the policy. Also, your premiums are not fixed and may increase from time to time, for example every 5-10 years or so. SmartQuotes.ie do not currently offer whole of life policies except for New Ireland Life Choice option. Please ask your SmartQuotes representative for further details.
How much Life Assurance do I need?
This is very much a personal choice depending on your circumstances:
Generally, if you have a young family, you will need to provide a larger lump sum than if your children are older. That is because the benefit has to last longer.
You will need to consider buying cover to:
How much cover you take out is dependant on what you wish the cover to be for. The same is true for the length of time the cover should be for. If you have taken out a life assurance policy to run along side your mortgage, it will dictate how long the cover is needed. However if you have taken out a life policy to financially provide for your family in the event of your premature death, you may want the term to run until your youngest child finishes full time education.
What is the difference between Life Assurance or Life Insurance?
In practical terms, none. Both terms may be used and in practice there is no real difference between the two.
What is the difference between single, joint and dual life cover?
Single Life Policy
Covers one person only
Joint Life Policy
It pays out the benefit only once, if either you or your partner dies while the policy is in force. A Mortgage Life Assurance policy is an example of a Joint Life Policy
Dual Life Policy
This is a life assurance policy that provides cover for two people and continues after the first person dies within the term of the policy. It pays out the benefit on each death within the term of the policy. More companies currently quote for Dual Life Cover so in certain cases this type of cover may be only slightly more expensive or even cheaper than Joint Life Cover, even though Dual Cover is a superior level of cover than Joint Life Cover.
What is Mortgage Life Assurance (also known as Mortgage Protection)
This is a form of life assurance product, which lenders must make sure you have in place when you take out a mortgage on your family home and if you are under 50 years of age. Your mortgage protection policy pays off the outstanding amount due on your mortgage if you die.
Mortgage Life Assurance is also known as Mortgage Protection. It is a decreasing cover so for example if your mortgage is initially €200,000 and after 5 years of repayments has circa €150,000 outstanding, in the event of a claim the Mortgage Life Assurance policy will repay circa €150,000. For this reason it is usually cheaper than standard Life Cover (where the benefit does not reduce).
Specified Illness options can be included as an additional option at an additional cost. A more detailed description is available below.
It should be not be confused with Mortgage Repayment Protection which pays mortgage payments for a set period in the event to unemployment or illness. Mortgage Repayment Protection is not offered by SmartQuotes.ie.
If you have an interest only mortgage which by nature is not decreasing a term life assurance policy will be required
What are the various different types of Life Assurance?
Convertible Term Policy
This is also known as a continuation option. At the end of the term you have chosen you have the option to continue your life cover without the need for further medical information. The cost of the cover at this time will be dependent upon the cost of cover for a similar individual with no health issues. In certain cases it may be possible to convert the policy prior to the end of the term. See below for further details.
Convertible Term / Continuation Options By Insurer
|
|
||||
| Anytime | AT END | MAX AGE (TO CONVERT) | COVER ENDS | |
| CALEDONIAN | YES | YES | 65 | 80 |
| CANADA LIFE | YES | YES | 65 | 80 |
| ZURICH | NO | YES | N/A | 85 |
| FRIENDS FIRST | YES | YES | 65 | 80 |
| AVIVA | YES | YES | N/A | 80 |
| IRISH LIFE | YES | YES | N/A | 80 |
| NEW IRELAND | YES | YES | 60 | 85 |
Level Term
The policy is for a set period of time (eg 20 years). At the end of period the policy will lapse. The premium remains constant throughout the policy (except for the first twelve months if a discount is applicable)
Indexation
This option allows you to increase your life cover in line with inflation. The indexation rates vary between providers and clients should always ask what indexation rate applies to their premium and their benefits. In general individuals should look for an indexation option where the benefit and premiums increase at the same rate, which although more expensive in the early years will usually work out cheaper during the life of the policy. Please contact us if you would like an illustration of this for any particular indexing quote.
What is Specified Illness Cover?
Specified Illness cover is a long-term assurance policy designed to pay a lump sum on the diagnosis of certain life-threatening or debilitating (but not necessarily fatal) conditions such as a heart attack, stroke, cancer, multiple sclerosis and loss of limbs. The specified illnesses covered vary between providers and can change from time to time. Where you have requested a quote and a specified illness option has been included we will provide you with a breakdown of the illnesses covered by that insurer.
Serious illness assurance does not usually cover you for common conditions such as diabetes or certain treatable cancers. Also, if you develop an illness that is listed on the policy it does not guarantee you will be covered. Your condition must match your policy's exact definition of the illness.
There are a number of different types of specified illness cover.
A comparison of illnesses is provided at policy documents
Accelerated Specified Illness Cover
Life cover with attaching Specified Illness Cover under the one policy.
A Specified Illness claim payment reduces your remaining life cover by that amount i.e. advance payment of Life Cover.
This can be an option with both Mortgage Life Assurance and standard Life Assurance policies. For example if the Life Cover was for €200,000 and the Accelerated Specified Illness benefit was for example €50,000. On the diagnosis of a Specified Illness €50,000 is paid to out with €150,000 of Life Cover remaining.
Life Cover with Standalone Specified Illness Cover
This is Life Cover with independent specified illness cover where a specified illness cover claim does not reduce the level of life cover.
Standalone Specified Illness Cover
This is specified illness cover with no life cover benefit
What is the difference between specified illness and terminal illness cover?
With specified illness the policy will pay out on diagnosis of a specified medical condition listed by the insurer. With terminal illness cover the policy will pay out if you are diagnosed as having 12 months or less to live, although some providers will not pay out if the policy has less than 18 months to run.
Terminal illness is included automatically on certain policies. Please consult your policy terms and conditions for details on this.
Specified illness cover can be combined with Term Life Assurance or Mortgage Life Assurance and a premium will be charged for the extra cover.
Will the insurer cover me if I already suffer with a specific medical condition?
It depends. You must disclose this on the application form in the required field. The insurer may then write to your doctor or request that you attend a medical examination before a final underwriting decision is made.
It is the responsibility of the client to ensure that all information submitted is complete and accurate. It should be noted that clients have a duty to disclose any material facts, which come to light between the dates, the proposal form is signed and the date the policy is issued. Failure to do so may result in any subsequent claim being refused.
When you are applying for Life Assurance, Mortgage Life Assurance, Income Protection or Specified Illness Cover you are under a legal obligation to disclose all relevant details about your health or any other relevant item as requested on the application form. If it subsequently transpires that you did not disclose on your application something which was relevant and which you knew about, then the insurance company may cancel the cover under the policy and no claim will be paid. The insurance company will rely on what you have told them in your application. When in doubt about a specific item it should be disclosed and the relevant Insurance Company will decide on its relevance. Where you do not wish to disclose this information to the intermediary the Insurer can be contacted directly.
Are there any exclusions?
The details of any exclusions are included with the policy documents which will be sent out at policy issue. In general suicide is not covered until a period of 13 months have elapsed since the policy was issued and the first premium has been paid. Where in doubt the policy documents received at policy issue should be reviewed. If you have any specific queries please contact us on info@smartquotes.ie and we will get confirmation from the relevant insurance company on your behalf. If you are not happy with the policy once it has issued you are entitled to cancel it within 30 days. Please see Cooling-Off Period below.
What is a Cooling-Off Period?
With most policies you have a 'cooling off' period during which you can cancel a policy and get a refund of any premiums you have paid. These will be clearly advised in the policy information received from SmartQuotes (a trading name of PFP Financial Services Limited) or the relevant insurer.
What companies do SmartQuotes.ie offer Life Assurance for?
We work with some of the largest names of the market such as
We don't handle client premiums for Life Assurance and all direct debits go directly to the insurance company. See further details on insurance companies at Appendix A.
Can I switch my provider of Life Assurance or Mortgage Life Assurance during the term?
In recent years term rates have reduced and it may be possible to obtain a lower monthly premium by switching provider.
Like with all products it is a good idea to review your Life Assurance to ensure it is value for money and fit for purpose. On an ongoing basis your life situation changes as do your insurance needs, so it's important to review your life insurance cover every so often. Changes like birth, quitting smoking, divorce, re-marriage or even a new mortgage or job, are indicators that you might need to make changes to your life insurance policy.
If you do plan to switch to a new Life or Mortgage Life Assurance policy, you'll need to cancel your old policy in writing. However, you should not cancel it until the new policy is in place.
In relation to Mortgage Life Assurance, any mortgage holder is permitted to organise their own mortgage life assurance. SmartQuotes use technology to compare the market to find you the lowest cost provider based on the information you have provided. We offer clients a discount on their first year's premium. SmartQuotes allows monthly payers to benefit from this discount.
If you propose to take out this policy in complete or partial replacement of an existing policy, please take special care to satisfy yourself that this policy meets your needs. In particular, please make sure that you are aware of the financial consequences of replacing your existing policy.
It should be noted that it is not prudent to switch provider unless the premium before the discount is lower than your current monthly premium as after month 13 the premium will revert to the higher amount.
How to Switch Provider in relation to Mortgage Life Assurance
How does the discount during the first twelve months work
We are paid a commission for acting as intermediary and our first year's discount is a rebate of part of that commission with you.
For Life Assurance (including Mortgage Life Assurance) and Specified Illness Cover where policies are paid monthly we will refund you 70% of the first year's premium (provided the monthly premium is €30 or more), paid monthly on the same day the direct debit is paid to the provider (eg Insurance Company) for the first twelve months. It's as simple as that.
Where the premium is below €30 per month the rebate will be calculated as follows (and the term if 10 years or more):
€20 to €29.99 Rebate of 60% payable
€19.99 or less Rebate of 50% payable
Where the term of the policy is less than 10 years no rebate will apply.
Where policies are paid yearly, and the premium has been paid in full, we will refund you up to 70% of the first year's premium, paid within 4 weeks after the commencement date of the policy (where monthly premium equivalent is €30 or more where it is lower than these levels the calculations as above will apply). It should be noted that if the policy is terminated within the first twelve months (by way of cancellation or non payment of premium) the commission rebate is refundable SmartQuotes.ie (a trading name of PFP Financial Services Limited) in full.
From month 13 onwards the normal monthly premium applies.
NB: If you miss a payment during the rebate period (first twelve months), the monthly rebate will cease until payments with the insurance company are brought up to date.
What is meant by execution only
An Execution-Only service means that you tell us what product you wish to buy. We don't give you advice as to the type of product most suitable for your needs or the amount of cover you are obtaining. By signing the execution only letter you are acknowledging you have neither requested nor been given any advice in relation to the product. The team at SmartQuotes.ie are available by phone and email to help and will assist where possible to answer any questions you may have.
Can I cancel the policy at any time?
Yes, but of course your life assurance cover will then stop also. There is no cash in value for any policy.
How do I make a complaint?
If you have a complaint, we really want to hear from you. We welcome your comments, as they give us the opportunity to put things right and improve our service. Please email: info@smartquotes.ie
Protection Providers:
Aviva
Aviva is the world's sixth largest* insurance group, serving 53 million customers across Europe, North America and Asia Pacific. In Ireland 1.3 million customers trust us to look after their financial and personal assets.
Aviva are very proud of our established and trusted heritage in Ireland spanning over 100 years. Aviva are committed to understanding our customers, recognising their individual needs and providing world class service through our nationwide network of branches and independent brokers together with our customer contact centre and website www.aviva.ie
Aviva Life & Pensions Ireland Limited is regulated by the Central Bank of Ireland. A private company limited by shares. Registered in Ireland No. 252737
For further information go to www.aviva.ie
Caledonian Life
Caledonian Life is a division of the Royal London Group, the largest mutual life and pensions company in the UK with Group funds under management of £43.7 billion (approx €49 billion). Group businesses serve around 3 million customers and employ 2,630 people.* So you can rest assured you're in safe hands.
Caledonian Life's Head Office is based at the heart of Dublin's premier business district at Caledonian House, 47 St. Stephen's Green, Dublin 2.
For further information go to www.caledonianlife.ie
Friends First
With total assets exceeding €3.8billion, Friends First employ over 400 people and have their corporate headquarters in Dublin and regional offices in Cork and Galway.
Friends First is a wholly-owned subsidiary of Eureko, a pan-European insurance group with total assets exceeding €95 billion**.
Friends First Life Assurance Company Limited. Registered in Ireland No. 165970.
For further information go to www.friendsfirst.ie
Irish Life
Founded in 1939, Irish Life have been taking care of our customers' financial future for 70 years. Irish Life are proud to be part of the Irish Life & Permanent group of companies, one of Ireland's largest and most successful financial organisation and the market leader in provision of life, pension and investment products.
New Ireland are one of the leading life assurance companies in the country, with:
For further information to www.newireland.ie
Zurich
Zurich Life Assurance plc is a member of Zurich Financial Services group a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. Founded in 1872, Zurich Financial Services group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.
As one of Ireland's most successful life insurance companies, Zurich offer a full range of Zurich Life Pension, Investment and Protection products. Their investment team, based in Blackrock, Co. Dublin, is responsible for funds under management of approximately €11 billion, of which pension assets amount to €6.3 billion (as at 30th June 2011).
Zurich Life Assurance plc is registered in Ireland under number 58098 and licensed by the Department of Enterprise, Trade and Employment to transact life business in Ireland. Zurich Life is registered for Value Added Tax (VAT) under registraton number 1410723M.
Zurich Life’s head office is situated in Ireland at the address given below:
Eagle Star House, Frascati Road, Blackrock, Co. Dublin.
Tel: (01) 283 1301
Fax: (01) 283 1578
Website: www.zurichlife.ie
Share Us
Quick Quote Links
Helpful Links
