About Section 72
What is Section 72 cover?
In its simplest form, it is a guaranteed whole-of-life insurance policy, set up to provide money for your family’s inheritance tax bill.
You pay regular premiums. The policy pays a lump sum on death. Whole of life means the cover lasts for your lifetime, rather than ending at a particular age.
Request my Section 72 quoteSee some examples →The basics
Cover for life. Premiums you can plan around.
Whole-of-life cover
The policy pays the agreed benefit when you die. It does not run out after 20 years or stop because you reach a certain age. You keep the cover in place by paying the premiums.
Guaranteed premiums
The premium for your agreed cover is guaranteed for life. It does not rise simply because you get older or your health changes. Knowing the cost helps you budget.
Money for inheritance tax
The payout provides a separate fund to pay your beneficiaries’ inheritance tax, helping them keep the home, savings or other assets you leave them.
If you choose an option that increases your cover each year, the premium also increases with it. I explain the options before you choose your policy.
What the name means
What does “Section 72” add?
Whole-of-life describes the insurance. Section 72 describes its tax treatment.
The name comes from the section of Irish tax law that allows a qualifying policy’s payout to be exempt from inheritance tax when used to pay your beneficiaries’ inheritance tax bill.
In plain English: the policy provides money for the tax bill, without creating another inheritance tax bill on the money used to pay it.
The policy must be set up to qualify for Section 72 from the start. It is not a label you add to an ordinary life policy later. I help you choose and arrange the appropriate cover from the outset.
Why people take it out
You want to leave an inheritance. The tax needs a plan too.
In Ireland, your beneficiaries can face inheritance tax of 33% on what they receive above their remaining tax-free allowance. The tax is called Capital Acquisitions Tax, or CAT.
A family can inherit a valuable home or business without inheriting enough cash to pay that bill. Section 72 provides the money, reducing the need to borrow or sell assets.
Help your family keep it.
Give them the means to pay the tax while keeping the assets you intended them to have.
Fund the bill efficiently.
Regular premiums can fund a much larger payout. Money spent on premiums also leaves the taxable estate, reducing the tax on money your family would otherwise inherit.
Know there is a plan.
Prepare during your lifetime and leave your family with one less financial worry at a difficult time.
See the tax calculations and the potential savings in our examples →
One person or a couple
When does the policy pay?
Single-life cover
Covers one person and pays on their death, providing money for their beneficiaries’ inheritance tax.
Joint-life second-death cover
Covers a couple and pays when the second person dies. For married couples or civil partners leaving everything to each other first, this matches when the inheritance tax need arises.
There is no CAT on inheritances between spouses or civil partners. The bill arises when assets pass to children or other beneficiaries above their allowances. Arranging the payout for that point helps keep the cost down.
The providers
Three life companies. One adviser to help you choose.
Only three life insurance companies in Ireland offer this Section 72 whole-of-life cover: Royal London, Zurich and Irish Life. I hold agencies with all three, so I can compare the full choice available to you.
The right choice is about the premium, the policy features and your circumstances. I explain the differences clearly and recommend the option that best fits your needs.
An important age limit
Have your cover in place before your 75th birthday.
The maximum age at entry is 74. Once you turn 75, you cannot take out a new Section 72 policy.
Start the conversation well in advance. Your application and any medical underwriting need time to complete, so do not leave it until your birthday is approaching. Arranging cover earlier, while you are in good health, also gives you more time to choose the right plan and budget for it.
This is the deadline for starting a new policy. Cover already in place continues for life as you keep paying the premiums.
Explore my cover optionsHow I help
Personal guidance from your first question to your policy starting.
I am Brian Whelan QFA, Managing Director of Section72.ie, based in Ranelagh, Dublin 6. My role is to make the insurance straightforward and help you set it up efficiently.
Understand your plans.
We look at your estate, who will inherit and the likely tax bill. An approximate estate value is enough to start.
Compare your options.
I prepare your quotation and personal report, explain the costs and benefits, and answer your questions about which provider and policy to choose.
Get the cover in place.
I guide you through the application and underwriting, liaise with the insurer and keep you informed. You deal directly with me throughout.
Your solicitor advises on your will and completing a trust form. I look after the insurance. We also review your cover as your estate, family circumstances or tax rules change.
Understand the idea. Now see what it means for you.
Request your personal quotation and report, or explore the examples first. If you do not know your inheritance tax bill, I can help you work through the figures.
Request my quote and personal reportSee the examples →Prefer to talk? Call Brian on 01 668 6136. For the detailed tax rules, see Revenue’s inheritance tax guidance.