Purpose: Income protection insurance pays you a regular income if you're unable to work due to illness or injury. It's designed to help you maintain your lifestyle and cover bills if you can't work for an extended period.

Coverage: It typically covers up to 75% of your income before tax, minus any state illness benefits you're entitled to

• Eligibility: To qualify, you generally need to be:
• Employed for over 16 hours a week or self-employed
• Between 18 and 59 years old at the start of the policy

Deferred Period: There's a waiting time (deferred period) between when you stop working and when the policy starts paying out. This can range from 4 to 52 weeks, with longer periods resulting in lower premiums1

Duration: The policy can pay out until you return to work, the policy term ends, or you reach retirement age (typically 65)

Tax Benefits: Premiums may be eligible for tax relief at your marginal rate of tax, potentially reducing the cost by up to 40%2

Additional Benefits: Some policies offer extras like:

• Hospital stay benefits
• Coverage during unemployment or career breaks
• Confirmed income option (pays based on original income even if your income drops)

Cost Factors: Premiums depend on factors like your job (riskier jobs cost more), age, health, family medical history, and lifestyle choices

Limitations: Income protection doesn't cover job loss due to redundancy or unemployment. It's specifically for inability to work due to illness or injury

When considering income protection insurance, it's important to check your employer's sick pay policy, any state benefits you might be entitled to, and to compare different policies to find the best coverage for your needs and budget.

1. Disability Insurance
Disability insurance is often overlooked, despite its importance in protecting your income if you become unable to work due to illness or injury. Many people underestimate the likelihood of needing this coverage, not realising that common conditions like musculoskeletal disorders, cancer, pregnancy complications, and mental health issues are among the most frequent causes of long-term disability claims.
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2. Umbrella Liability Insurance
This type of insurance extends liability protection beyond standard home and auto policies. It's particularly important for those with higher net worth, as it protects assets and future income from potential lawsuits.
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3. Cyber Liability Insurance
With the increasing prevalence of data breaches, cyber liability insurance has become essential for businesses of all sizes. However, it's frequently overlooked, especially the third-party coverage aspect which protects against claims from customers affected by security breaches.
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4. Long-Term Care Insurance
As people age, the need for long-term care becomes more likely, yet many overlook this coverage. With the high costs of nursing homes and assisted living facilities, long-term care insurance can be crucial for protecting retirement savings.
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5. Business Interruption Coverage
For business owners, this type of insurance protects against financial losses due to unexpected disruptions like power outages. Many businesses fail to consider the full scope of coverage needed, such as funds for ongoing bills during repairs.
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6. Identity Theft Coverage
As the fastest-growing crime in America, identity theft protection is often overlooked. This coverage helps reimburse expenses related to restoring your identity if it's stolen.
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7. Flood Insurance
Many homeowners don't realize that standard homeowner's policies don't cover flood damage. Separate flood insurance is necessary, even for those not in flood-prone areas.
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8. Broadened Coverage for Expensive Items
Standard homeowner's policies often have limitations on coverage for high-value items like jewelry, collectibles, and fine art. Many people overlook the need for additional coverage for these items2
. By understanding these commonly overlooked insurance types, individuals and businesses can better assess their risk and ensure they have comprehensive coverage tailored to their specific needs.

​To decide which types of insurance are essential for you, consider the following key factors:

Assess Your Personal Situation

Life Stage and Dependents

• If you have a family or dependents, life insurance becomes crucial to protect their financial future
•  For single individuals without dependents, life insurance may be less essential.

Employment Status

• If you're employed, check what insurance benefits your employer already provides
• Self-employed individuals may need to prioritise income protection insurance.

Assets

• Homeowners should consider homeowners insurance to protect their property.
• Renters should look into renters insurance for their belongings.

Evaluate Your Risks and Priorities

Health Concerns

• Health insurance is essential for everyone to protect against unexpected medical expenses1
• If you have a family history of certain illnesses, consider more comprehensive health coverage.

Income Protection

• Income protection insurance is important if you rely heavily on your salary and have limited savings

Long-Term Care

• As you age, long-term care insurance becomes more relevant, especially if you want to protect your assets

Consider Your Budget

Cost vs. Coverage

• Compare different insurance providers and policies to find the best value for your needs
• Balance the cost of premiums against the potential financial impact of being uninsured

Prioritize Essential Coverage

If budget is tight, focus on the most critical types of insurance first, such as health and auto insurance (if you drive)

Review and Adjust Regularly
Life Changes

• Reassess your insurance needs when major life events occur, such as marriage, having children, or buying a home

Annual Review

• Conduct an annual review of your insurance policies to ensure they still meet your needs and offer competitive rates1

    .

By carefully considering these factors, you can determine which types of insurance are most essential for your specific situation.

Remember, the goal is to protect yourself and your loved ones from potential financial hardships while balancing the costs of coverage.

Contact me today to discuss any of the above: 087 7636864

I was just reading this article on The Irish Times.

• Savings & Investments
• Financial Advice
• Business, Personal & Family Protection
• Retirement Planning
• Financial Review
  

We’d all love to be financial wizards. At the start of every year we have great intentions, as financial promises are renewed all over Ireland. We say we’ll cut back on spending and that we’ll save like squirrels (honest). And the thing is, most of us can be great money managers – we just need the support and structure in place.

Whether you’re looking for advice on your Savings & Investments or advice on all of your finances there are a number of things you should take into account. Most importantly, remember, that the overall purpose is to benefit you and give you reassurance that your finances are on track to meet your goals or to help identify any gaps in your finances that you might like to start addressing

During the Financial Review you will be asked for personal financial information, such as your income, your outgoings and expenses, details of any loans and details of any current pension provisions you have in place. This information is required so your Financial Adviser can build up a correct and complete picture of your current finances and make suitable and appropriate recommendations. While you do not have to provide any information, without it the Financial Adviser will not be able to get a full picture of your financial situation

Information you should bring;

• Details of any existing savings or investments plans you have
• Details of any loans, credit cards or debts you have
• Salary details
• Details of your monthly or annual outgoings and expenditure
• Details of any upcoming expenses or events you might be saving for, and what your target for these is,
  

A new report from Bank of Ireland has found that almost half of Irish consumers (49%) see it as a good time to save which compares to 42% in November 2019.

However, this number is lower than it was in May of this year (55%) suggesting that while lockdowns have enforced a reduced level of expenditure, consumer attitudes to saving have not been quite as pronounced in the second lockdown, or Christmas spending had started in earnest. read more