Life Insurance for Commercial Fishermen in Ireland

If you are a commercial fisherman/woman or you husband/wife/partner works on a fishing vessel in Ireland, and you are worried about your family’s financial future if anything was to happen, you might consider a Life Insurance Plan.

Deciding which plan is best for you should be discussed with a professional who can guide you to the right direction for you.

There are generally three types of Life Insurance plans:

1/. Term Life Insurance,

2/. Whole Life insurance, and,

3/. Universal Insurance.

 

What is Term Life Insurance?

Term Life Insurance, also known as pure life insurance, is a type of death benefit that pays the heirs of the policyholder throughout a specific period of time. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to lapse.

Key points on Term Life Insurance

• Term life insurance guarantees payment of a stated death benefit to the insured’s beneficiaries if the insured person dies during a specified term.
• These policies have no value other than the guaranteed death benefit and feature no savings component as is found in a whole life insurance product.
• Term life premiums are based on a person’s age, health, and life expectancy.
• Depending on the insurance company, it may be possible to turn term life into whole life insurance.
• You can purchase term life policies that last 10, 15, or 20 years.

 

What is Whole Life Insurance?

Whole Life Insurance, also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. Interest accrues at a fixed rate and on a tax-deferred basis.

Key points on Whole Life Insurance

• Whole life insurance lasts for an insured’s lifetime, as opposed to term life insurance, which is for a specific number of years.
• Whole life insurance is paid out to a beneficiary or beneficiaries upon the insured’s death, provided the policy was in force.
• Whole life insurance has a cash savings component, which the policy owner can draw or borrow from.
• The cash value of a whole life policy typically earns a fixed rate of interest.
• An outstanding loan principal and interest reduce death benefits.

 

What is Universal Life Insurance?

Universal Life Insurance is permanent life insurance (lasting the lifetime of the insured) that has an investment savings element and low premiums similar to those of term life insurance. Most universal life insurance policies contain a flexible-premium option. but some require a single premium (single lump-sum premium) or fixed premiums (scheduled fixed premiums).

Key points on Universal Life Insurance

• Universal life (UL) insurance is a form of permanent life insurance with an investment savings element plus low premium.
• The price tag on universal life (UL) insurance is the minimum amount of a premium payment required to keep the policy.
• There are no tax implications for policyholders who borrow against the accumulated cash value of their UL insurance policy.
• Unlike term life insurance, a UL insurance policy can accumulate cash value.
• You can borrow from any accumulated cash value in your policy.