Life cover
A lump sum for the people who depend on you, paid if you die during the term of the policy, so they are not left with money worries on top of everything else.
What it is
Life cover, also called term life assurance, pays a lump sum to your family if you die while the policy is in force. You choose the amount of cover and the term, pay a regular premium, and if the worst happens the payout gives the people you leave behind room to breathe: to clear debts, replace your income, or keep the family home going.
It comes in a few shapes. Level term pays a fixed amount throughout. Decreasing term reduces over time and is often used to match a mortgage. Whole of life covers you for as long as you live rather than a set term, at a higher cost. Cover can be single life, joint life, or dual life, which pays out on each person separately. Part of our job is to tell you which shape fits.
Who it is for
- Parents and anyone with people who rely on their income
- Couples with a mortgage or shared financial commitments
- Single-income households where one salary keeps things running
- Business owners protecting a partner or a key person
How it works
You set the sum assured and the term, often until the children are grown or the mortgage is repaid. Your age, health and lifestyle affect the premium, which on level cover is usually fixed for the whole term. If you die within the term, the insurer pays the lump sum, normally quickly and directly to your beneficiary. If you outlive the term, a term policy simply ends, which is why it costs less than cover that lasts for life.
The tax and inheritance point
The payout itself is free of income tax. But if it goes to someone other than a spouse or civil partner, it can be caught by Capital Acquisitions Tax, Ireland’s inheritance tax, at 33% above the relevant threshold. Writing the policy in trust, or taking out a Section 72 policy designed specifically to pay an inheritance tax bill, can keep the money in your family’s hands. Spouses and civil partners inherit from each other free of this tax.
How much life insurance do I actually need?
Most people either guess at how much life cover they need or copy a round number, and both tend to be wrong. This builds the figure from what actually matters: your mortgage, other debts, the income your family would need to replace and for how long, less any cover you already have. In a couple of minutes you get a realistic target instead of a guess. Bring it to the team and we will find that cover at the best price across the market, and set it up so it pays out cleanly.
Life cover calculator
A starting figure for how much cover would clear your debts and replace your income.
Fill in the fields above and press Calculate.
Why talk to BDS
Premiums for identical cover vary a lot between insurers, so expert, whole-of-market comparison saves real money over the life of a policy. Bryan, Barbara and David all advise on protection. We work out how much cover you actually need, set it up in the right structure, and write it in trust where that keeps the payout out of the tax net. Because we are not tied to one insurer’s product, the advice is built around you.
Common questions
Enough to clear your debts and replace your income for the years your family would need it. We model it with you rather than guess, using your commitments and who depends on you.
It is free of income tax. It can face inheritance tax if paid to someone other than a spouse or civil partner, which writing it in trust or a Section 72 policy can address.
A term policy pays nothing if you survive the term, which is why it is inexpensive. If you want cover that always pays out, whole of life is the option.
Often yes. We place cover with insurers who take your circumstances into account, and we know which ones tend to look on particular conditions more favourably.
Other kinds of cover
Important information
Tax reliefs, thresholds and rules referred to here are set by Revenue and apply to the 2026 tax year. They can change in future Budgets and Finance Acts, and the right cover depends on your own circumstances. The examples are illustrations, not quotes.
David Sheahan Insurance & Investments Ltd t/a BDS Financial is regulated by the Central Bank of Ireland. Reg. no. 115813. Offices in Limerick, Dublin and Galway.
This content is general information and is not financial advice.
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