Protection – Protecting What’s Important to You
Protection is the most important part of financial planning. It is the practical way to ensure that, if the worst were to happen, your family would have enough money to maintain their lifestyle.
This cover is also vital from a business planning perspective as it can financially protect the business or company from the untimely death of a partner or key individual in the business.
Life Cover pays your family a lump sum if you die, giving them an income when they need it most. Life Cover give you peace of mind that your family will be secure financially when you are gone. You choose how long you need the cover for, which can be from 2 to 50 years.
Income protection is a type of insurance that pays you a regular income if you can no longer work due to an injury or illness. Its aim is to replace some of your earned income once any state benefits are taken into account. Income Protection helps to safeguard your lifestyle, and get you back on your feet by providing you with a monthly income, while you are out of work for this period of time.
You decide how much cover you need based on your current earnings, the deferred period you want (the period of time before the benefit becomes payable), how long you need the benefit to be paid for, and how long you want the cover for.
Did you know that Self-employed people do not qualify for any State Disability benefits in the event of having to leave work due to illness or injury?
Mortgage Protection Cover is essential for anyone buying their home. This type of cover is used to secure your mortgage with the bank. As you pay off your mortgage, your cover will reduce to reflect the reducing amount you owe on your mortgage. The fact that the level of cover reduces over the term of your plan helps to keep the cost of this plan lower than other forms of life assurance.
Inheritance Tax Cover
Did you know in the past number of recent Budgets the rates of Inheritance Tax payable have increased considerably? These Budgets have also reduced the exemption thresholds to an all-time low, so in many cases even passing on the family home to your children in the event of your death can create an Inheritance Tax liability.
To encourage people to plan ahead and to have cash available to pay Inheritance Tax when they die relief is available on certain life assurance plans. The relief provides that where a life assurance policy is put in place to provide for the payment of Inheritance Tax, Revenue will not seek to tax the policy proceeds as long as the money is used to pay Inheritance Tax.
Did you know the current Inheritance Tax rate is 33%? This means if you’re not protected, up to 1/3 of your estate could be payable in tax to Revenue.
Specified Illness Cover
Specified Illness Benefit pays out a lump sum amount on diagnosis of a serious illness covered during the chosen term of cover. The Specified Illness Benefit is payable if you suffer any one of the Specified Illnesses which are listed in the policy.
You choose the amount of cover you need and how to use it. For example, if you became ill, the payout could cover your mortgage and loan repayments, or everyday bills and expenses leaving you to concentrate on getting better.
Many problems can arise for a business when a partner or key employee is out of the picture due to death or serious illness. Some of these problems could be alleviated with adequate financial planning to provide the funds to allow options and choices to be made by all parties.
How would your business survive if one of your key employees or shareholders became seriously ill or died suddenly?
If your business partner died what would happen to their share of the business?
How would you feel about a shareholder’s family joining your business if s/he died suddenly?
If you died what would happen to your share of the business?
Arranging adequate Business Protection Insurance is the only way to ensure that the necessary funds will end up in the right hands at the right time, to ensure the continuity and the survival of the business.