A Friendly Guide to Life Insurance in Ireland
Thinking about the future without the overwhelm.
Life insurance isn't something many of us wake up excited to think about. But if you've got a partner, kids, or people who rely on you, it's something worth understanding — calmly, and without judgment. Whether you're just starting to look into it or have been putting it off for a while, this guide breaks down the essentials in plain English, with Irish families in mind.
What is Life Insurance, really?
At its simplest, life insurance is a safety net. It pays out a lump sum to your chosen people — your spouse, children, or anyone else you name — if you pass away during the term of the policy.
That money can help cover things like:
- Mortgage or rent
- Funeral costs
- Everyday family bills
- Childcare or education expenses
- Future plans you hoped to help fund
The idea isn't to replace you, of course — but to help reduce financial stress at a time when emotions are already running high.
Do You Need Life Insurance?
There's no one-size-fits-all answer. But here are a few gentle prompts:
- Do you have children or dependents who rely on your income?
- Would your partner struggle to pay the mortgage without you?
- Are you single but supporting a parent or sibling financially?
- Have you co-signed debts that would fall to someone else?
If the answer to any of those is yes, then a life insurance policy might be worth exploring. Even a modest policy can make a big difference at a critical time.
And if the answer is no? That's perfectly okay. Revisit it later if your circumstances change.
What Type of Life Cover Should I Consider?
There are a few different types of cover — all slightly different, but not hard to understand once you know the basics.
1. Mortgage Protection
This is often required when taking out a mortgage. The cover amount reduces over time in line with your mortgage, and is designed to pay off the outstanding balance if you die before the loan is repaid.
2. Term Life Insurance
You choose how long the policy lasts (say, 20 or 30 years) and how much it would pay out. It's good for protecting your income while kids are growing up or debts are being repaid.
3. Whole-of-Life Cover
This runs for your entire lifetime and guarantees a payout, no matter when you die. It's more expensive but can be useful for things like inheritance tax planning or funeral costs.
How Much Cover Do I Need?
A good starting point is to ask: what financial gap would exist if I wasn't here tomorrow?
Some helpful ways to estimate:
- Mortgage or rent: What's still owed?
- Children: Consider childcare, schooling, university costs.
- Day-to-day living: Groceries, utilities, transport.
- Savings & benefits: What's already in place? Would it last?
A common rule of thumb is to aim for 10–15 times your annual take-home pay, but it really depends on your situation. You can also start small and increase it later.
How Much Does Life Insurance Cost in Ireland?
The cost depends on:
- Your age
- Health and lifestyle (e.g., if you smoke)
- The type of cover
- The amount and duration of the policy
Generally, the younger and healthier you are when you take out cover, the cheaper it is. Policies can start from as little as €10–15 per month for basic cover — and you can always adjust things as life changes.
Some policies let you "index" your cover so it increases slightly each year to keep up with inflation.
Final Thoughts: It's Not About Fear — It's About Care
Life insurance isn't about being morbid or preparing for the worst. It's about love, responsibility, and creating peace of mind for the people who matter most to you. If you've been putting it off, don't feel guilty. You're far from alone. Just start by having the conversation, looking at your budget, and seeing what feels manageable.
And remember: some protection — even a little — is better