Health insurance firm VHI says it has now entered the life insurance market.

The company says it will offer both new and existing customers cover through a flexible and easy to understand product, with a simplified application process.

The new venture, to be called 'VHI Life', will offer customers financial protection in the event that they or their partner die during the term of the policy, providing a lump sum to help protect a family's standard of living.

Speaking at the launch John O' Dwyer, chief executive of the VHI Group, said: " Life insurance fits very well with our overall customer offering and supports our business strategy for the future".

"The number of people with life insurance in Ireland is low with people significantly underestimating the impact that the loss of a spouse or partner can have on a family's lifestyle".

Initially, the company will launch a family-focused term insurance product.

It also says customers will be able to increase their life cover without having to go through further assessment.

The move follows the company's authorisation by the Central Bank of Ireland last year, which puts it on a regulatory footing that enables it to move into new markets.

VHI already offers dental, homecare and multitrip options to customers.