Financial watchdog takes jargon out of life insurance

DUAL life policy?

Accelerated serious-illness cover? Baffled?

Jargon and complicated terms for life insurance issues are made easy and clear in a new guide launched yesterday.

Released by the financial watchdog, the simple 32-page booklet gives consumers a breakdown of the dos and don’ts about taking out life insurance including cover for sickness, loans and death.

In the step by step guide, consumers in simple English are told what insurance types are available, which ones suit best, how much cover is needed and if they need to get medical checks.

“Life insurance is about making sure that your family or dependants will be financially secure in the event of your death. It is hard to think about it, but you need to consider how your family would cope, especially if they rely on your income, or the work you do in the home,” explained the Financial Regulator’s consumer director Mary O’Dea.

The guide explains how people can decide if they need a life insurance policy.

It also explains that people should think about any large loans they have, as they may want to have insurance in place to pay them off, if they become sick or have to stop working.

“It is also important to review your cover regularly, especially if your circumstances have changed, for example, if you’ve had children since you took out the policy, or if your income has increased. Make sure that your policy is sufficient for your family’s needs,” added Mary O’Dea.

The guide also gives tips on how to shop around for cover, by going directly to an insurer or using a broker, and outlines questions to ask when considering policies.