Parents have been advised to put in place adequate life insurance to provide for their children in the event of their death.
The Financial Regulator issued the advice as part of a new guide, entitled "Life insurance made easy", published today. The guide provides information for the general public regarding life insurance requirements and the type of product to choose.
The guide states that life insurance is particularly important for those with a family or a mortgage.
The report goes on to explain the difference between term life insurance, mortgage protection insurance and whole-of-life insurance. Advice is also given on the changing of life insurance policies and tax relief on premium payments.
Mary O'Dea, Consumer Director, said that it was important for people to realise that mortgage cover only pays the mortgage in the event of a person's death and that a separate life insurance policy is necessary in order to ensure that dependents will be paid a lump sum.
Ms O'Dea said that life insurance was a reasonably priced product, particularly for young people. She added that it was essential for people to review their insurance needs on a regular basis, particularly if they have had children since taking out their original life insurance policy.