Additional Benefits of Life Insurance

“But what if I don’t die? Isn’t life insurance a waste of money?”

I hear this a lot.

And look, I get it.

Nobody buys life insurance hoping to use it. But what most people don’t realise is that modern Irish policies come with extra benefits you can use while you’re still alive and giving out about the price of everything.

Some of these extras are genuinely handy. Others are there to make the brochure look thicker.

Most modern mortgage protection policies include some of these extras too, depending on the insurer.

So let’s go through everything, with a clear split between the bits you pay for and the bits you get for free.

Life insurance extras you can use while you’re still alive

Here’s the full breakdown of the add-ons Irish insurers offer, what they actually do and whether they’re worth your time and money.

Benefits you pay extra premium for

Hospital cash cover

If you’re in hospital for more than 72 hours, hospital cash pays you a fixed amount for every full day you’re admitted. It’s meant to cover the things health insurance doesn’t: parking, travel, food, childcare and the general cost of being stuck in a ward.

Real claim examples:

A woman in her 50s who suffered a stroke spent 126 days in hospital and received just over €20,000. A man in his 30s treated for pneumonia spent 98 days admitted and received nearly €20,000. In both cases, the benefit made a massive difference.

How much can you buy? Zurich and New Ireland allow up to €300 per day. Irish Life offers between roughly €70 and €260 per day.

If you bought €200 a day and spent 13 days in hospital, you’d receive €2,600.

Common exclusions: mental health admissions, alcohol or drug related injuries, early pregnancy hospitalisation, and claims linked to pre-existing conditions in the first year.

Who needs it? Anyone with limited or no sick pay, the self-employed, or people who want a buffer for short-term hospital stays.

If you already have good sick pay and income protection, it’s optional rather than essential.

Surgical cash benefit

If you have specified illness cover with Zurich or New Ireland, you can add surgical cash.

It pays a percentage of your illness cover if you need major or intermediate surgery. Hip and knee replacements are the most common claims.

Major surgeries receive up to 12.5% of your cover (max €32,500). Intermediate surgeries receive 5% (max €13,000).

If joint replacements or certain abdominal conditions run in your family, this can be a smart addition. It works as a bolt-on to your main serious illness cover rather than a standalone product.

Broken bones and sports injury cover

This pays fixed amounts if you fracture or dislocate something. The payouts range from €1,000 to €3,000 depending on the bone.

Only New Ireland offers it. It suits sporty people or anyone with children or teenagers who like launching themselves off things at speed.

Personal accident cover

This pays up to half your average weekly earnings if you can’t work due to an accident.

The issue is the exclusions.

Injuries from lifting, twisting or bending don’t count, which rules out a huge chunk of real-life injuries.

Available from Zurich, New Ireland and Irish Life.

Income protection is a much better option. Here’s how to choose the right policy if you’re comparing the two.

Waiver of premium

If illness or injury stops you working for more than 13 weeks, the insurer pauses your premiums but keeps your cover going. Simple and genuinely helpful.

Available from Zurich and Aviva.

Permanent total disablement (PTD)

PTD is an upgrade to your serious illness cover. If you’re permanently unable to work (for at least 12 months) your full illness benefit is paid out.

It lasts until age 65 and is worth considering for higher-risk roles.

Benefits that are automatically included for free

Digital GP

A video GP service you can use without paying a fee.

Great for kids who get the sniffles, quick prescriptions, or avoiding waiting rooms full of coughing strangers.

Available from Aviva and New Ireland.

Medical second opinion

Your diagnosis or treatment plan is reviewed by an independent specialist.

This can make a major difference in serious cases.

Available from Aviva, Irish Life and Royal London.

Aviva’s Best Doctors tie-up is the market leader.

Nurse adviser service

A personal nurse who helps you understand treatments, recovery plans and the steps ahead.

Available from Irish Life and Royal London.

Bereavement counselling

Free counselling for grief or family difficulties.

Included with Irish Life, Royal London and Aviva.

Which benefits actually matter? (Nick’s honest view)

Worth paying extra for: hospital cash, waiver of premium, surgical cash (depending on history), PTD.

Useful free extras: Digital GP, medical second opinion, nurse adviser.

Situational: broken bones cover, bereavement counselling, personal accident cover.

Mostly brochure filler: benefits with tiny payouts, or add-ons with long exclusion lists.

Your core cover — life insurance, specified illness cover and income protection — is the real backbone.

Everything else is gravy. Sometimes delicious. Sometimes grey and lumpy.

Over to you

If you want a personalised recommendation based on your own situation, fill in the quick questionnaire below and I’ll take a look.

If you’d prefer to chat instead, you can book a quick call here.

Editor’s note: First published in 2020. Refreshed in 2025 with updated insurer benefits, merged hospital cash content and simplified comparisons.

Written by Nick McGowan, QFA RPA APA

Nick is a qualified financial advisor and founder of Lion.ie, an independent Irish life insurance and income protection brokerage based in Tullamore. He’s been helping people get fair, transparent cover for over 15 years — and was named Protection Broker of the Year 2022.

If you’d like straight answers (without the sales pitch), learn more about Nick here.