HAVE A FEW QUESTIONS?
We know there is a lot of information out there which you need to understand & consider before you make an educated decision on what policy you feel is best for you & your family. We have compiled a number of faqs below which we hope will be helpful to you. We are also only a phone call or email away to clarify or explain any of below or/and feel free to contact us to arrange a Free Financial Review or if you have any further questions.
Our most asked question is…….
Do I have to pay you to advise me & set up a policy? The answer is NO. We do not charge you as we earn a commission from the insurance companies we work with, so no need to worry about a big bill from us!
Now that we have that clear from the start, we have loads more great questions & answers below. Enjoy.
Income Protection
What does Income Protection do?
Income Protection pays you up to 75 % of your income if you can’t work due to an illness or injury (T&C’S APPLY). It’s like having a regular income even though you can’t work. It is capped at 75% so to encourage you to try & get back to work.
Where can I buy Income Protection?
There are a number of options available to you when buying Income Protection. You can buy it from a bank, direct from the actual insurer or of a broker. One very main important thing to note is both a bank & an insurer will only give you a quote from one insurer. A broker, on the other hand, will do his best to give you impartial advice on all the different policies that each of the insurers they deal with has at the time. This way you can decide on which is best for you & your family.
When can I claim on Income Protection?
When you set up your policy, you will decide how long you will have to wait for your income protection to kick in once you are out of work due to illness or injury as per your policy. After this period of time “deferred period” which you could not work passes you will then be able to claim your income protection payments.
How long does Income Protection pay out for?
Income protection pays out until you return to your job or when you retire, whichever is sooner.
Can you tell me more about “deferred period”?
Deferred period is simply a waiting period until your replacement income becomes available due to you been unable to work due to illness or injury as per income protection policy. Your premium cost is the longer your deferred period is set on your policy. The main thing to help you make your decision when setting your “deferred period” in your income protection policy is, how long would you / family survive if you no longer had your income available. Some people may be able to survive 1-month others 2 – 3 months, some 6 months – 1 year. This is always different for the individual to make sure you do the maths & decide what suits you best, not a friend that has income protection in place as their financial situation could be a lot different once you dig deeper.
When does Income Protection pay out?
You can choose a deferred period of 4, 8, 13, 26, or 52 weeks. The less the deferred period is the more the income protection premium will cost.
Income Protection pays out once your insurer has received & accepted your claim. Once this has happened you should start to receive your first payment very soon after the deferred period.
How much does Income Protection cost?
As you can imagine there are a number of factors which have to be taken into consideration by the insurer. One of the main ones that affect the cost of income protection is, of course, your health & been a smoker or a non-smoker will certainly make a big difference. As like most insurance policies, smokers will pay an extra cost for being a smoker besides the cost of cigarettes. The income that you are looking to protect is also a big one. Many others like the “deferred period” you have chosen, your age & your actual occupation will also affect the cost of your income protection.
For self-employed people who may work at perceived more risky occupations than others, they will find that their income protection costs might be a lot different than their friend who works in a profession who is mostly at their “desk”!
How does my job / occupation affect Income Protection?
There are 4 classes that insurers classify you according to the risk of injury in your job. The higher the class you fall into because of your occupation the higher your income protection premium will be as you are a higher risk to the insurer.
People who work at let say “desk jobs” are a lower risk to insurer& people who work on building sites etc are a higher risk. One of our brokers will be able to explain all the above in more detail so you can make the best decision for you & your family when it comes to chosen income protection.
Do I pay tax on my income protection when I receive payments.
Yes, you pay tax on the payments you receive it’s just like when your “normal” income is taxed. Good news is you can claim the tax back at the rate you pay tax normally on your wages. So, if you pay your tax at the higher rate, you can claim your income protection premium back at the higher amount.
Is it worth getting Income Protection?
If you feel you can survive without your income it’s probably not! Otherwise especially for Self Employed people it may just be what helps keep you & your family get through a period of time which can be very stressful for all concerned once that income is no longer available to pay all the bills & loans we all have nowadays.
I need Income Protection, what do I do next?
The next step is simply to contact us. We will then advise & help you with setting up your Income Protection at no cost to you. This is done after considering all the information which will be discussed by you & our Income Protection expert advisor so we help you get the best – suited income protection policy for you.
Mortgage Protection
What is Mortgage Protection?
Mortgage Protection is to protect both you and your family. The bank’s get paid if you pass away before your mortgage is fully paid. Your family is also protected because they do not have the mental & financial stress of having to pay off the mortgage. This can sometimes be a large debt to pay off so it’s legally put in place to protect.
Why do I need Mortgage Protection ?
Once you are buying a house in Ireland you need to have mortgage protection. It’s NOT an option to just decide that you won’t need it!
What does Mortgage Protection insurance do?
Each insurer has different reasons why they will suit your needs over the other. As we all know we are all different in this life. For example, some will pay out if you can’t work for over 13 weeks. It differs greatly on how much you can afford to pay – the more cover the more cost. Sometimes people will automatically go for whatever they feel is the cheapest premium will do. This is not always the case so make sure your policy has taken all the factors into consideration & then decide on what best suits you & what you can afford.
Where can I buy Mortgage Protection insurance?
There are a number of options. You can buy directly from the insurer, you can buy directly from the banks or you can engage with a broker who unlike the other 2 will be able to do all the hard work of comparing all the different insurers they deal with on a daily bases. A brokers main job is to find you the best policy at the best price which best suits you without any allegiance to a particular insurer.
Can I switch my mortgage protection insurance?
Yes. You can switch your Mortgage Protection provider at any time. Before you switch, make sure the new policy is in place & you have made sure you’re happy with the policy before you go cancelling your old one. Your original mortgage protection policy is assigned to a bank to protect & cover your mortgage. All banks need this in place & there cannot be a period of time which you are in between cover.
What is a Mortgage Protection premium & how much does it cost?
Your mortgage protection premium is a monthly amount you pay. The cost of your mortgage protection monthly payments will depend on mainly the amount of mortgage protection cover you need & for how long. There are a number of other factors like your health & age. Smokers again are aware that that habit is going to cost you more in your premiums as you are a much bigger risk to insurers.
I have mortgage protection. Do I need Life Insurance as well or can I buy a house with just mortgage protection in place.
No, you don’t have to have Life Insurance in place when buying a house, once you have mortgage protection your go to go.
Can I transfer my Mortgage Protection as I am getting a new mortgage?
Yes & No is the answer! If you bought your mortgage protection from your bank, the answer is NO. However, if you bought it mortgage protection through a broker the good news is YES you can transfer it & in turn probably save a lot of money
If I have health issues will this affect my chances of getting mortgage protection?
Sometimes health issues can affect your chances of getting mortgage protection as you can understand that would depend on how severe your health issues are. Some health issues will simply affect the cost by a small percentage & of course others more. One of our brokers will be the person who will go through this in more detail with you so please feel free to contact us today to arrange an appointment.
Who gets the pay out if I have Serious Illness added to my mortgage protection?
If you have your mortgage protection & your serious illness cover bundled together with your bank and then have to make a claim, the bank is entitled to any pay-out which is another reason why you might decide to NOT go with your bank & go with a broker who will put you wide to this before you sign on the dotted line.
I need Mortgage Protection, so what's the next step?
The next step is simply to contact us. We will then advise & help you with setting up your mortgage protection at no cost to you. This is done after considering all the information which will be discussed by you & our mortgage protection expert advisor so we help you get the best – suited mortgage protection policy for you.
Any other questions?
We hope we have covered many of the different questions you may have had regarding mortgage protection. If there is any of the above that you need someone to go through with you in more detail. Please feel free to contact us & we will have one of our mortgage protection advisors get in touch.
Life Insurance / Term Insurance
What're the benefits of having Life Insurance & who should have it?
The main purpose of having Life Insurance is to PROTECT your family from the financial burden of your death. Your family receives a lump sum which they can use for many uses including paying for your funeral, everyday family bills & costs or to clear a debt. The lump sum can also help them continue their life without the stress of financial worries that life brings even when you have passed.
Life Insurance is something which is really important once you have someone in your life which depends on you financially & you want them to be able to continue their life as close to normal as possible even when you’re gone.
Is there any other major benefit of having Whole Life Insurance?
Whole Life insurance major benefit is usually to prevent your loved ones receiving a large inheritance tax bill when you’re gone. Depending on each individual case this can be a significant amount saved from going to the tax man.
Some people may find that their inheritance tax bill can be quite substantial. This can put a huge burden on families who may have to borrow money to pay the tax bill which can be stressful even though they have inherited an asset.
Protect your assets from inheritance tax by making sure you have your Inheritance plan in place before you pass as many forget about this until it’s too late. Please feel free to contact us so we can discuss how we can guide & advise you through this.
When does life Insurance pay-out & when does it NOT payout?
The process of the Life Insurance policy paying out starts once the insurer receives the death certificate of the person who is on the Life Insurance policy.
There are only a few reasons why a Life Insurance policy is NOT paid out which are as follows –
Lying about health conditions or having some dangerous hobby which you forgot to include on your Life Insurance application form. The mentioned would have had an additional premium cost difference if included originally making your policy invalid so make sure, to tell the truth on the forms you fill in!
The 2 other ones are if you have cancelled your life insurance policy or stop paying your life insurance premiums.
What is Term Life Insurance?
Term Insurance is as you guessed insurance for a “term” or a defined period of time agreed within your policy. Most people who decide to go with “Term Life Insurance” usually set it up for the years which they feel their family is most dependent on them. This can be when children are at the ages of going to crèche, school or college.
What is Life Insurance?
Whole of Life Insurance as you have probably already guessed is an insurance plan that lasts a person for the whole of their life & is NOT just for a specific term. When a person who has Whole of Life Insurance dies, the policy will provide their family a lump sum payment. The “lump sum payment” may be used to cover funeral expenses etc.
Why should I choose to go with Life Term Insurance?
If you died between the agreed “term” your family may have to deal with a lot of financial burdens when you’re very ill or not around. “Term” Insurance can protect your family from this stressful time which will give you great peace of mind. If you die or become seriously ill within the “term” which is agreed within your term policy cover, your policy will pay out & so protecting your family.
In summary, it’s a payment that your family receives when they most need it which can give you great peace of mind.
How much life Insurance cover do I need?
Every individual is different so it is important to understand that it’s not a case of “one glove fits all” & many unfortunately do approach Life Insurance with a very casual random number they feel they might / should have because maybe that’s what someone else they know has.
As every family circumstances is different especially nowadays it is so important to speak to a financial advisor (we are here if you need help!) so you can be assured that you have the right policy to suit you as an individual & not a version which you think is right because your friend has it for their family.
How long do I make payments & how regularly do I make those payments?
You pay a set amount which is usually set up for payments to be taken by direct debit on regular bases monthly, bi-monthly. This can be for a period of time between 2 & 4o years depending on the individual policy.
Why do people pick term life insurance over Life Term Insurance?
There can be many reasons which are all different for each individual, but one of the main reasons usually is the cost. Whole Life Insurance is more expensive than Term Life Insurance for obvious reasons.
I need Life Cover so what the next step?
The next step is simply to contact us. We will then advise & help you with setting up your Life Cover at no cost to you. This is done after considering all the information which will be discussed by you & our Life Cover expert advisor so we help you get the best – suited Life Cover policy for you.
Can I add more / different cover to my Term Insurance policy?
You can add cover for your partner within the same term policy.
You can also add cover for many disabilities, serious illnesses. You can also increase the term life cover when life circumstances change for example when you have a new baby.
Can I get Term Insurance at any age?
NO, You need to be aged between 18 years & 75 years old to take out Term Life Insurance.
Please note the age gap reduces when it comes to serious illness which is something you can add to your term life insurance, for serious illness cover or otherwise known as critical illness cover you will need to be between 18 years & 65 years old.
So how is my term life insurance policy paid out?
You have 2 choices of receiving payment. First one is (Monthly Income Cover) from the time you die until the end of the term life insurance policy your family receive a monthly income.
The second option is (Level Term Cover) which is when your family or dependents receive a “lump sum” which is a once of payment. This is usually used then to pay for medical bills, childcare, college etc. This can make a huge difference both financially & mentally as it is already a stressful time which can be overwhelming for families if they have to face financial worries as well.
Where can I get Whole Life Insurance / Term Life Insurance?
You have 3 choices. Direct from your bank ( please note that your bank is tied to doing business with only 1 insurer so not able to give you the choices from other insurers that may be a better fit for you.
Direct from an “insurer” please also note as you can understand, the particular “insurance company” is NOT going to mention anything about the other options that other insurance companies have available.
Last but NOT least & where we would suggest you opt for a broker (hopefully us!) This is for all the reasons mentioned above, as your broker we will go to all the top insurance companies we deal with on a daily bases & get you the best-suited life insurance & the best price. Only brokers (like us) can give you “independent financial advice” which leads to you been informed with all the options available & with our help & guidance you can pick which is the best life insurance for you & your family.
Serious / Critical Illness
What is Serious Illness Cover otherwise known as?
Critical Illness Cover or Specified Illness cover are two other names but they all fall under the same umbrella, just some insurer use specific ones in their policies. I know it seems confusing but once you see any of the 3 mentioned you can now know that they are all different names used in the profession.
What does Serious Illness cover do if I need to claim?
Serious Illness cover is a tax-free lump sum which is there for you when you are unfortunate enough to be seriously ill. The “payout” will be only be made if the illness you have is part of your serious illness cover policy.
What are the different illnesses that serious illness covers?
There are many serious illnesses covered & only the most common diseases are mentioned below so please see the full list or speak with us before assuming that a particular illness is covered.
The most common serious illnesses covered are Cancer ( not all forms of cancer are covered), stroke, heart disease & MS.
What do I need to be aware of when setting up my serious illness cover policy?
When you are setting up your serious illness cover or adding it to another policy as an add-on, it is vital that you understand exactly what illnesses are covered in your serious illness policy. It is also important to know & understand when a serious illness policy will pay out & when it won’t as some insurance companies have different defined conditions of a disease that will be paid out. Summary read the small writing or have one of our expert brokers go through it with you so you can be sure that you understand exactly what your serious illness cover policy covers you for and what it doesn’t.
When does Serious Illness Cover payout?
Once your insurer receives the documents from your doctor/health professional in some cases & they support the evidence for your claim.
When does serious illness cover NOT payout?
There are only a few reasons why a serious illness policy does not pay out as per your defined serious illness cover.
Lying about health conditions which you “forgot” to include on your Serious Illness Cover application form. The mentioned would have had an additional premium cost difference if included originally making your policy invalid so make sure, to tell the truth on the forms you fill in!
The 2 other ones are if you have cancelled your serious illness policy or stop paying your serious illness premiums.
How much does “Serious Illness Cover” cost & how much do I need?
It’s impossible to give one specific answer to these questions which are 2 of the most common questions asked regarding serious illness.
What we can help you understand is what factors insurers take into account when insuring you for “serious illness cover”.
The amount of cover you are looking to have as part of your policy, your health, your age & of course as the big one which has a huge difference in your serious illness policy cover is if you are a smoker. It’s a costly habit every day for smokers which will also be costly when it comes to serious illness cover.
Regarding how much do you need, that again depends on what life you currently live & how much your expenditure is every month which also has to take into account how many people are financially dependent on you. Twice your income is usually a good barometer to use but again each individual has many different factors to consider before choosing what is best for them & their family.
We are here to help you make the correct decisions when deciding on serious illness cover so please feel free to contact us today.
I need serious illness cover, what the next step?
The next step is simply to contact us. We will then advise & help you with setting up your Serious Illness cover at no cost to you. This is done after considering all the information which will be discussed by you & our Serious Illness expert advisor so we help you get the best – suited Serious Illness policy for you.
Pensions
How much should I put in my pension?
In an ideal world, you should be saving as much as possible.
The better question to ask regarding pensions is how much can I put towards my pension each month & still do what you need to do.
Why do I need a pension when I will get the state pension anyway?
It’s true that as you get to “pension age” your mortgage will hopefully be no longer a financial strain & maybe your children might be at the stage that they have moved out & you don’t have all the bills that come along with having children of a younger age who are dependent on you.
However, if you want to be able to have choices which are what life is about & depending on the individual prefer not to be putting off that trip you always promised you’d take when you retire etc.
When you retire you will hopefully find you have a lot more time than you use to so you can do what you want to do when you want to do it – unless you are minding your grandchildren which have become a big thing in Ireland nowadays! Either way, these things cost money.
The state pension by itself may not be able to fund your dreams of retirement and as time goes by the age to qualify for the state pension is been pushed out, By 2021 the age to qualify for the state pension will be 67 & by 2028 it will be 68. Currently, the age for retirement is 66.
Can I get any tax relief on my pensions premium payments?
Yes, one of the major reasons why it makes sense at an early age is to avail of the tax relief.
For every contribution, you make into your pension fund the government incentives you by giving you tax relief based on the rate you pay tax on your income. There are no other savings that you will be offered that will give you the rate on savings as what the tax relief you get from each contribution towards your pension. The tax rate that the “average” person pays in Ireland is 20% or 40%.
Do I pay tax on my pension when I receive it?
Yes, as it’s regarded as an income, BUT up to €200K of your pension is tax-free.
If the lump sum is over €200k & under €500k the income tax applied would be 20%.
(The max lump sum allowable is €500k)
Do all companies in Ireland have to provide a pension scheme to their emplyees? ?
No, is the short answer. Employers are under no obligation to provide a pension scheme for their employees. In some sectors, the employer is obliged to provide a pension plan under (REA) terms.
N.B Employers nowadays are obligated to give each employee access to personal retirement savings accounts more commonly known as PRSA. The employer does NOT pay into a PRSA but must at least facilitate the employees PRSA through the payroll so that an employee can avail of this type of pension.
I'm 40, am I too old to start a pension?
No, 40 is not too old to start a pension. It’s never too late to start providing for your retirement. The benefit of starting younger is you can benefit from the tax-relief & save more money for when you do retire.
The main thing being, if you do decide on starting a pension we recommend that you sit down with a broker ( us!) & have one of our financial advisors go through it with you & make sure that you have a pension which is right for you & not just the same as a friend.
We are here to guide you through making this decision so please feel free to call us to discuss in further detail without any cost to you.
What is the best pension for me?
This all depends on many factors. One main one is your age. Before deciding on taking our a pension, please do not just go with the same one a friend or family member has as each individual has many different factors to consider before choosing the pension which is right for them & their dependents.
We are here to guide you through making this decision so please feel free to call us to discuss in further detail without any cost to you.
How much is the state pension?
The State Pension (Contributory) is €230 per week. Not a lot if you plan to live the life you might have currently planned.
I need to set up a pension, what the next step?
The next step is simply to contact us. We will then advise & help you with setting up your pension at no cost to you. This is done after considering all the information which will be discussed by you & our pensions expert advisor so we help you get the best – suited pensions fund for you.
