News

If you are reading this article you’re not dead but You will die someday hopefully not for a very very long time !

If you have loads of life cover read on you might learn something you didn’t already know  if you don’t have any, read on you might understand how important it is and how cheap it is. In any case just read on 😊

These are some of the reasons

1. We don’t like to think about our own mortality . Like making a Will, it is easier to put it on the long finger, as none of us want to think about not being around for a family.  It’s something that could keep you awake at night. It is ‘easier’ to push it neatly to back of our minds.

• We haven’t a notion what it all means. We usually do this grown up stuff when we are going for a mortgage or when the kids come along sometimes we wait till the third bundle of joy ! We don’t totally understand the need for life cover. When we take out a mortgage for a family home, we usually buy it from the mortgage provider just to get the hell out of there !

• We think it  is too expensive. Life cover is not expensive, In fact it is cheaper the younger you are . For instance , a life cover for a female, non-smoker, aged 30years for the sum assured of €250,000 over a term of 20 years (including a convertible option) would be €15.37 monthly.

I personally think and while it’s my professional opinion it is also my own opinion that not affording it is not an option.

The alternative does not bear thinking about. Any spouse/partner left behind with a young family has enough horror to deal with without the stress of worrying without money .  As a parent ,I feel it’s hard enough to explain to kids that mommy or daddy is gone without having to tell them they can’t go to Ballet or Rugby because we can’t afford the cost of it anymore . Sorry to be so brutal but it does happen ☹

Even a small amount of cover will alleviate the stress and strain for the short term

• We don’t see the need if we have basic life cover in place. If we have Mortgage Protection we think we are covered. 

Far from it, for example if we have a dependent family, while the mortgage will be paid off, assuming we have only mortgage protection cover, there is no surplus.  As I always say you cant eat a house !

• We don’t look at our earning power in the same way as our assets. After all, we insure our car and our house and would not dream of not doing so. But what if we weren’t around to provide a salary for our family? Is it not more important to protect ourselves than our assets?

Lets think about our human capital for a min .

Human Capital what ??

Let’s take an average wage of €40,000; over 30 years that will amount to €1.2 million !!

A lot of money – but trust me you will spend that over 30 years on living expenses especially if you have young children.

We have to take into account how our young family would cope if we weren’t around to earn that €1.2 million ?

Back to me beating my drum on the  next part !!

• We don’t realise we should have life cover, for example if we are co-habiting, it is a must but few realise this. As a co-habiting couple you are treated as a stranger for taxation purposes.

• The stranger threshold for Inheritance Tax is €16,250 Inheritances in excess of this are subject to tax at 33%. So if the house passes to the cohabiting partner, he/she could have a substantial tax bill. We recently has a couple and the tax bill would have been €400k ! Simple fix cost them €7 . Talk to a good advisor ammmmmmm well I don’t like to name anyone but look no further !

• Yes I said Stranger the mother father of your children the love of your life is classed as a stranger ! I kid you not . If you have a dual life policy set up we need to talk !!

Thankfully most of the time, it is not needed but it is peace of mind to have it in place, knowing our loved ones are protected, should the unexpected happen.

This is an opinion only and does not constitute advice as individual circumstances will determine all financial advice given.

Still not sure book your Zoom Call Now https://davidkelleher.ie/ and review your life cover or find out how much you should have.

Or just pick up the phone or text whatever suits you !