10-second summary: Choosing life insurance comes down to three decisions – how much cover you need, what type of policy suits you, and which insurer is right for your situation. Get those in the right order and it’s straightforward. Get them wrong and it can cost you thousands over time.
If you’re here, you probably don’t want a lecture.
You want to know how to choose the right policy without wasting money or making a mistake that follows you.
So let’s keep this simple.
There are three decisions that actually matter.
The 3 Decisions That Actually Matter
1. How Much Cover Do You Need?
This is where most people guess. That’s where problems start.
If you have a mortgage and kids, the goal isn’t just to clear the loan. It’s to replace income. If your income disappeared tomorrow, how would the house get paid? School costs? Food? Everything else?
A common mistake is picking a round number like €250,000 because it “sounds right”. That number might be perfect. It might also be miles off.
As a rough guide, families usually need enough cover to:
- Clear the mortgage (if that’s a priority)
- Replace income until children are financially independent
- Cover immediate expenses and debts
If you’re single with no dependants, the number is usually much lower. It may simply be enough to clear a mortgage so nobody is left with your debt.
If you want to calculate it properly, we’ve broken it down step by step here:
How Much Life Insurance Do I Need?
Or if you just want to run the numbers quickly:
Life Insurance Calculator
Get the amount right first. Everything else flows from that.
2. What Type of Policy Suits You?
Once you know the amount, you need the right structure.
Most people fall into one of these categories:
- Mortgage-only cover: Mortgage protection clears the loan if you die. It’s the cheapest type of life cover because it protects the bank’s interest.
- Income replacement: Level term life insurance leaves a lump sum to replace income for your family.
- Health event protection: Serious illness cover pays out if you’re diagnosed with a specified condition.
- Income protection: Income protection replaces up to 75% of your salary if illness stops you working.
If you have children, level term life cover is usually the foundation.
If you’re self-employed or your income is the backbone of the household, income protection can matter more than life cover.
If you’re buying a home, mortgage protection is required by the lender — but that doesn’t mean it’s the only cover you should consider.
Structure first. Price second.
3. Which Insurer Is Right for You?
This is where people quietly lose money.
Insurers do not assess risk the same way. Two companies can look at the exact same medical history and price it very differently.
If you’re perfectly healthy, the differences may be small. If you’ve had anything significant — asthma, diabetes, mental health treatment, back issues — the gap can be substantial.
Here’s the important part.
If you apply to one insurer and get declined or heavily loaded, future insurers will ask about that decision. Your first application matters.
Choosing an insurer isn’t just about who is cheapest today. It’s about who is most likely to treat your situation fairly.
If you’re comparing providers, this guide breaks it down properly:
Which Life Insurance Company Is Best in Ireland?
Before You Hit “Apply”
All online quotes assume perfect health.
If you have any current or previous medical history, the final premium may be higher. That’s normal.
What matters is approaching the right insurer first.
If you have a health condition and want to handle it properly, you can tell us about it here before applying:
Medical Questionnaire
We also explain how insurers treat different conditions here:
Life Insurance with a Pre-Existing Condition
Where People Go Wrong
They focus on price before structure.
They assume all insurers price risk the same way.
They apply directly to the first insurer they think of without taking advice.
They pick a number without doing the maths.
None of this is complicated. It just needs to be done in the right order.
Getting Quotes
You can get instant quotes online from banks, insurers and brokers.
Our system shows prices from all major providers without forcing you to leave your details.
No follow-up calls unless you ask for them.
Get an instant life insurance quote
Just remember — don’t press apply until you’re confident you’ve chosen the right insurer and structure.
Next Step
If you’re comfortable making the decision yourself, run the numbers and arrange your cover.
If you’d prefer clarity tailored to your situation, complete this short questionnaire and we’ll guide you properly:
Complete the Life Insurance Questionnaire
You don’t need to know everything. You just need to get the three decisions right.
Thanks for reading.
Nick
Editor’s Note: This guide was first published in 2017 and has been fully updated for 2026 to reflect current insurer underwriting practices, pricing differences, and how applications are assessed in Ireland today.
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.