Drumgoole Financial Services

Monthly Income in the Event of Death

This month I am highlighting a type of life cover which will provide a monthly income on death. Most life protection policies pay out one lump sum, so this policy type is designed to replace some or all, of an income coming into a household. What are the benefits of this type of policy?

Mortgage Protection will cover any outstanding mortgage amount, which is most likely the largest monthly expenditure in most households. Although mortgage repayments are only a portion of the overall monthly outgoings a family may have, utility bills, groceries, clothing, education costs and possible outstanding loans are among the many other expenses. A regular monthly income might be easier to manage than a lump sum and would help keep the household on track.

How does it work?

In the event of a death during the chosen term of the policy, an income will be provided from the date of the claim until the end of the policy term. Income will be paid for a minimum term of two years once a claim is made even if the claim occurs within two years of the end of the term.

How much does it cost and how much cover is needed?

Let’s imagine you have mortgage protection which will clear your mortgage. You have calculated that you would require a monthly income of approximately €3,000 to compensate for the loss of earnings into the household. You want to cover this amount until your children are financially independent, so determine that you require this income cover for a term of 20 years.

Life Cover (Monthly Income)

Premium (Monthly)




20 Years



20 Years

Sample quotations above are based on a non-smoker male / female, aged 40. Source: Zurich

Some of the additional benefits that may be included with this cover without additional cost, can be Accidental Death Benefit, Guaranteed Insurability Option and Terminal Illness Benefit.

If you would like to see more information, just visit www.drumgoolebrokerage.ie or if you have a question #JustCallOran on 087 6686624.

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