Mercer Oneview Ireland

Dealing with your life cover on leaving employment

If you are leaving employment, it is possible that you will lose your life insurance if this benefit was provided by your former employer or pension scheme. Depending on your circumstances, it may be advisable to replace this immediately. If you act quickly it may be possible to secure a replacement policy with good terms.

Mercer can readily assist in replacing life insurance after you have left employment. To get a quote and/or to purchase cover, visit our Life & Health insurance section.

Life & Health Insurance

Importance of life insurance

If you are the main income provider in your family and if you have a spouse or children who are financially dependent on you, then life cover is important. Whether or not you should replace the cover provided by a previous employer will depend on a number of considerations. Some questions to consider include:

  • Would your family have sufficient savings to cope if you died?
  • Does anybody else in your family, or could anybody else in your family, earn an adequate income?
  • Are you entering new employment, and if so does that new employer offer life insurance as a benefit?

If the answer to these questions is no, and if you can afford to replace your life cover without unreasonably compromising your family’s standard of living, then you should strongly consider it.

Replacing cover

If you open a new life insurance policy, this is likely to be paid for by a monthly premium. The more cover you require, the higher that premium will be. Other factors that will influence the level of premium will be your general state of health, your age and whether or not you are a smoker.

Those in a poor state of health can have difficulty obtaining life cover on reasonable terms, or obtaining cover at all. However, if you act quickly after leaving employment, you may be able to purchase a ‘Continuation Option’ from the insurer who provided cover through your previous employer. A Continuation Option may not be the best route to take in all cases. However it has a particular benefit for those who are in poor health as it removes the need for medical underwriting, as your insurer should extend cover automatically.

Additional cover

It may be possible to obtain additional insurance on top of life insurance as a bolt-on to the policy. For example, it may be possible to buy Specified Illness Cover that will pay out while you are still alive if you become ill with one of a range of specified serious illnesses. The premium will be higher where additional cover is purchased, However, you should bear in mind that a debilitating illness could affect your family’s financial wellbeing in a similar way to your death.

Mercer can help

Mercer can readily assist in replacing life insurance after you have left employment. To get a quote and/or to purchase cover, visit our Life & Health insurance section. 

Life & Health Insurance

  • The information contained in this website is for information purposes only. It should not be taken in any way as advice. It should not be relied upon as an offer to purchase or sell any of the products that are discussed.
  • The value of investments can go down as well as up.
  • Investments or products mentioned on this site may or may not be suitable for you.
  • Before investing or purchasing any product you should always seek independent financial advice. Mercer can provide independent financial advice if required.

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