“Life is what happens to us while we are making other plans.”
All good financial plans take unexpected events into account, ensuring your family’s wealth is protected so important. When you have the right amount, and the right type, of protection it gives you peace of mind knowing your family and assets are protected.
Somewhere down the road in life something will go awry and we need contingency plans to sort it out. Depending on savings (what we call self-insurance) is really not a good idea.
A major illness, accident or losing your income can not only wipe out your assets but also derail your retirement plans.
That’s why we recommend all our clients have insurance in place.
What kind of insurance, and how much, obviously depends on your personal circumstances. And, if you are thinking of working abroad, there are extra considerations like repatriation in case of death or critical illness.
There are also different types of cover available depending on whether you are an individual or a business.
INSURANCE FOR INDIVIDUALS AND FAMILIES
Let’s kick off by having a quick look at some of the main types of cover available to individuals.
Whole of Life and Term Life
Life cover pays out a cash lump sum to your estate when you die. Under Whole of Life insurance, the cover stays in place for as long as you keep paying the premiums. With Term Life, you decide how long you want to be covered – up to the age of 65, for example.
Critical Illness Cover
This is a bit like a menu. You choose the types of illness you want to be covered for, and the level of coverage. So, if you had €60,000 of cover for cancer, once your diagnosis was confirmed you’d get a cash payout of €60,000. This can be used as you wish – covering treatment or paying living expenses.
Income protection will pay you up to 75% of your annual income if you are unable to work because of illness, injury or disability. This type of cover can be especially important for self-employed workers who don’t have the kind of sickness cover available to employees.
There are other types of cover we would discuss with you as part of a comprehensive financial plan. These include mortgage protection, child cover, homemaker insurance, over 50s no medical life cover, dental plans and travel insurance.
INSURANCE FOR BUSINESSES
Insurance is just as important for businesses as it is for individuals. Here a few of the more common types of policies you should consider.
A good benefits package is one of the best ways to attract and retain good employees. Providing term life cover for your staff via a group policy is also relatively easy to set up an administer. Plus, the costs can be offset against corporation tax.
Key Person Insurance
This cover is designed to protect your business if a key member of staff becomes seriously ill or dies. Your company pays the premiums and receives the specified amount in the policy in the event of the nominated employee suffering from long-term illness or death. The tax position regarding premiums is quite complex so you should talk to us about this before going ahead.
Property & Vehicle Insurance
Accidents and theft can result in major losses and/or disruption to your business. Apart from covering your property, equipment and vehicles it could be a good idea to add business interruption cover in case of loss of earnings.
This protects you against any claims for liability that arise during the course of doing
business. It covers personal injury and loss/damage to property.
If you hold any non-public data you are responsible for keeping it safe and secure. The GDPR penalties for failing in this duty can be extremely severe so this cover has become vital to businesses.