Nearly two thirds of Irish people don't have life insurance

Leitrim Observer Reporter

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Leitrim Observer Reporter

Why it's vital to know the facts of life insurance

Do you have life insurance?

Irish people believe that insurers don’t pay out on more than 40% of Life Insurance claims, but it’s a myth that Nick McGowan, Chief Education Officer at Lion.ie, is quick to dispel.

“People think that the insurers are locked away in dungeons dreaming of ways not to honour claims, but the truth is very different,” Nick asserts. “In most cases, insurers pay out over 90% of the time – and if they don’t pay out, it’s usually because the applicant lied on the form or because of a pre-existing condition.”

The survey reveals that 75% of Life Insurance application rejections are because of a health condition while the other 25% is because the applicant didn’t tell the truth on their application.

Meanwhile, 62% of Irish people don’t have Life Insurance – and cost is one of the biggest factors. 39% of respondents believe that Life Insurance is too expensive, while 34% just haven’t got round to sorting it out yet.

While price is a big consideration, the majority of respondents (44%) with Life Insurance were spending only €10-40 a month on their policy.

“The majority of people getting Life Insurance have a family or they’re buying a house and settling down,” says Nick. “They want to know that if anything were to happen, their family would be protected – which is why Life Insurance is so important.”