Protection

Life & Serious Illness

How would you or your family be affected if you were diagnosed with a serious illness. Would they be able to cope financially if you were to die ?

Life & Serious Illness cover is a policy;  that ensures that your dependents are financially protected if you die or contract one of a number of specified serious illnesses or in the event of permanent total disablement.

There are many different types of cover and providers. I will help you asses how much and what type of cover you need. This will depend on your age, occupation and family circumstances. As a broker I will recommend the most appropriate cover for the best price. Life cover is very affordable and premium starts at €10 per month.

How much cover do I need? : It depends on your circumstances and should be a multiple of your earnings, taking into account the no of years your family / business will need your financial support

Types of cover available

Level Term Insurance : Life cover lasts for a set no. of years and the  level of cover and the premium are set at the outset for the entire term of the policy.

Mortgage Protection: Life cover lasts for a set no. of years and the  premium stays the same but the level of cover reduces broadly in line with your mortgage.

Dual life policy: This is a life insurance policy that provides cover for two people and continues after the first person dies. It pays out benefit on each death.

Joint life policy: This is a type of life insurance policy that covers two lives, such as you and your spouse, child or business partner. It pays out the benefit only once, either you or your partner dies while the policy is in force.

Life of Another: Take out a policy on another person, must be connected e.g partner or business partner, joint mortgagee.  The person paying the premium receives the benefit. ( avoiding CAT tax )

Whole of life policy: This type of life insurance policy covers you for your whole life. It pays out a benefit when you die – whenever that happens – as long as the policy is still in force.

Section 72 Whole of Life: can be used to pay for inheritance tax. Payment from this policy does not form part of the estate.

Additional Options

 Index-linking: Index linking, or indexation, increases the benefit on your life insurance automatically every year.

Income on Death: This benefit pays out a monthly payment to your next of kin if you die.

Cancer Cover: Pays a benefit if you are diagnosed with cancer.

Accidental Death: Some insurers offer ‘accidental death’ benefit from the date they receive your application form.  This means that if you die suddenly before the policy is issued the life company will either pay out the sum assured or a certain percentage of it, up to a specified limit.

Children’s protection benefit: This is a benefit included on some life insurance policies.  In this case when you take out life cover for yourself, your children are also covered up to a smaller specified amount

Guaranteed insurability option: This is a benefit included on some life insurance policies.  It means that you have the option to take out additional life cover at certain stages, for example if you have children or your mortgage amount increases, without having to provide evidence of good health.

Terminal Illness Benefit: Life cover is paid out before you die, on diagnosis of a terminal illness.

Overseas Surgery Benefit: Payment for expenses if you suffer a serious illness necessitating surgery abroad.

Hospital Cash: Pays out if you are admitted to hospital for over 3 days due to accident or illness.

Continuation Options: You can extend the policy term without providing medical evidence

Personal Accident Benefit: pays out after 2 weeks after an accident which prevents you from working.

Waiver of Premium: If you are unable to work long term due to injury or illness your premiums will be paid, thus maintaining your cover.

Inflation Protection: each year you will have the option to increase your cover without a new application.

Permanent Total Disability: if you permanently, totally and irreversibly are unable to work your serious illness payment will be paid.

Surgical Cash: cash payment available if you have a serious illness policy you can receive a cash payment when you undergo a major surgery

Serious Illness

Serious illness cover pays a tax-free lump sum in the event you are diagnosed with specified serious illnesses. There are over 40 such illnesses covered on a typical policy.  The chances of a healthy male aged 20-40 suffering a Heart Attack or Stroke before the age of 65 are 1 in 4, and the chances of a healthy female aged 20-40 suffering from Cancer, Heart Attack or Stroke before the age of 65 is 1 in 5. Given these figures, it is worth your while providing financial security against this contingency.

Cost of Life Cover

 

Income Protection

An income protection policy pays out a regular cash payment replacing part of your lost income if you are unable to work due to any accident, disability or illness. The cost varies on your occupation, the amount covered, the deferred period and term of the policy.

Income protection pays a taxable income benefit if you are unable to work. The monthly cost of the policy gives you tax relief at your marginal rate.

Some occupations will not be eligible for cover while others will attract higher premiums. You should discuss the nature of your job, particularly any risk factors associated with it, with your Financial Broker so he can give you a clear idea of the cost and availability of cover.
If you were unable to work

How long will your employer keep paying you ?

Are you entitled to state illness benefit?

If you are self employed will your business survive without you?

Have you enough savings to pay your bills until you return to work?

As well as providing you with an income when you are unable to work, an income protection policy has invaluable additional features such as rehabilitation benefit, hospital cash benefit, relapse benefit and counselling.