Protect what matters to you the most
With many people facing financial challenges we are urging families everywhere to consider what sort of financial cover they have in place should the unexpected happen.
Many of us will instinctively rely on our savings and investments or the value of our properties as our financial cushion should one partner become seriously ill or die unexpectedly.
Typically these are not enough.
Spending a small amount on protection cover means you can provide for the financial needs of your family in the event of serious illness or death.
The issue of financially protecting both you and your loved ones has never been more important than in the current economic climate.
An example – Income Protection
Louise is a self employed business owner earning EUR 72,800 per annum (EUR 1,400 per week) and is a higher rate tax payer. She is 37 years old and is a non-smoker. She wants to ensure that if he became seriously ill or injured and was unable to work that 75% of her salary would be paid. Louise is not entitled to any longer term State Illness Benefit.
We advised Louise take out an income protection plan with a payment after 13 weeks of being unable to work due to a serious illness or injury, and with her benefit in payment increasing at 3% per annum.
Benefit amount: EUR 72,800 x 75% = EUR 54,600 per annum (E1,050 per week)
Gross premium: EUR 168.95 per month
Net cost: EUR 101.37 per month (after tax relief of 40%)
Louise has the option to reduce the cover if she wants to make the plan more affordable and/or if in the future economic circumstances mean that she rduces income taken from the business.
Alternatively, every 3 years Louise will have the option to increase cover by 20% without any medical underwriting.
IMPORTANT. Terms and conditions apply. Benefits are subject to underwriting and acceptance. It is important to note that certain restrictions, conditions and exclusions may apply. Benefit will increase at 3% p.a. A Government Levy of 1% of the premium will be payable on each premium paid. This quotation is for illustration purposes only. It is important to note that tax relief is not automatically granted; you must apply to and satisfy Revenue requirements. Revenue terms and conditions apply.
We are here to help you make a better decision.
If you have a financial planning or product question please contact us. Know more. 091 44 11 88 or firstname.lastname@example.org
This article was written by Rory Nelson, founder of Nelson Life. Rory is celebrating 20 years in financial planning this year. Professional qualifications include; UCD Specialist Diploma in Wealth Management, Pension Trustee Practitioner PTP, UCD Professional Certificate in Stockbroking,UCD Professional Certificate in Asset Management (SIA), QFA FLIA, Pensions Diploma, Mortgage Advice Diploma, CFP module – Tax & Estate Planning and has a degree in BA Accounting & Finance. He has regularly participated in national financial press.
Know more. 091 44 11 88 or email@example.com
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WARNING: Past performance is not a reliable guide to future performance.WARNING: The value of your investment may go down as well as up.WARNING: You may lose some or all of the money you invest.WARNING: These funds may be affected by changes in currency exchange rates.WARNING: If you invest into this product you will not have access until you retire.WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances.WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.
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