Why you need to think about Life Assurance, Income Protection & Serious Illness Cover

HC Financial – here to advise and help you!

The Corona Virus has given us all some time to think about the future and whats important in life. Now might be a good time to put a plan in place. None of us could have predicted the world wide pandemic of Covid 19 and many of us have been impacted financially as well as physically and emotionally. Give you and your family Peace of mind for the future

Have you thought about how you would get by financially if you got sick? Lost your job? Or just couldn’t work for a while because of an injury or illness? How would you pay the mortgage, school fees, general day to day living expenses?
We can’t predict the future. However we can help our loved ones by planning for it with life insurance. Life can be unpredictable, but with the right life insurance cover in place, you’ll always have peace of mind.

Life insurance:  This is a plan that pays out a lump sum to your family after you die. Most life insurance plans are for a fixed period of time and will only pay out if you die during that time period. Whole of life cover is more expensive but will pay out a lump sum whenever you die. Life insurance will help protect your family financially after you die, in a number of ways including:
  • Pay funeral costs
  • Replace income
  • Pay off debt / Mortgage
  • Provide Peace of mind financially for the future

Income protection: Income protection provides you with a replacement income if you cannot work as a result of an illness or injury after a certain period of time. You can take out income insurance if you are in full-time work or are self-employed and earn an income. It protects you only in these circumstances – it will not be paid if you become unemployed. You must keep up your payments to stay on cover.

It pays you a regular monthly income, replacing some of your earned income. Cover continues until age 65 or you return to work. Payments on your plan are eligible for income tax relief at your marginal rate of tax. However, if you do claim on this plan, your incapacity benefit will be treated as normal income and so is assessed for income tax, PRSI and the Universal Social Charge.

Serious Illness Cover: Some illnesses can have a major impact on your life. They can stop you from working and recovery may require assistance, and time. That’s where serious illness cover comes in. Serious illness cover (sometimes called critical illness cover) provides you with financial support if you are diagnosed with a serious Illness. You can talk to us about the list of illnesses covered.
Even a small amount of serious illness cover can go a long way. If you need €2,500 every month (€30,000 in a year) to cover your household expenses, the good news is that it’s relatively inexpensive. The table below shows how far even a small amount of cover could go and the monthly cost.
Serious Illness Cover
Source: Irish Life June 2020. Based on a 40-year old non-smoker with serious illness cover for a term of 15 years. This included a government insurance levy (1% as at May 2018 and may change in the future) applies to this policy. 

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