It is designed to manage risk during a window of time, perhaps when your family is about to go to college. Your broker will provide a recommendation for a suitable level of coverage based on your income, age and personal circumstances. In the event of death, your family will have some financial security, but you should ensure that you don't buy more insurance than you need. Whole of Life Assurance provides long-term protection. The younger you are when starting the policy the lower your premiums.
Some policies offer more flexibility than others.
One of the key issues is whether you want to pay for a fixed lump sum or an index linked amount. As inflation in Ireland is rising, this option, while more expensive, could be worth considering. Savings Policies or Endowment Policies pay a guaranteed sum on death or a tax-free lump sum after the term if death has not occurred and you have continued to pay all premiums. This can be a useful compromise against a straight life policy because there can be a useful lump sum payable at the end of the term. However, you should take advice in relation to the performance of such policies.