Life Assurance That Guarantees Cashback

The primary benefit of Life Assurance is to financially protect a family in the event of a death. When deciding if you need Life Assurance the kind of questions you should consider:

  • How will my family adjust financially if my partner or I die?

  • Will my mortgage be paid off?

  • Will my loans be paid off?

  • What sort of lifestyle will I be able to maintain?

  • Have I appropriate provisions in place long term?

  • Would I be able to afford to not work for a period of time?

In most cases, Life Assurance has a set amount of Life cover and a set time period. The average Life Assurance policy is cancelled within 8 years which means that many people will be taking out a new policy and will not receive any benefits from their current plan. There is generally no value on these policies unless you are making a claim.

A Life Assurance company has recently introduced a Whole of Life cover that offers you several options once you have passed 16 years. Once you have paid into it for this term, every year thereafter you will have an option to continue paying, encash the policy (receiving 70% of your premiums back) or stop paying for the cover and you will maintain a specified amount of Life cover forever.

Here is an example for a person who is 45 years of age, a non smoker who takes out €100,000 Whole of Life cover. The cost of this would be €111.66 per month (half the cover would cost roughly half the price). Let’s imagine they are retiring at 65 years of age, so they have paid into this plan for 20 years at that stage but they want to know what options they have at that time:

  1. Change Nothing:  They can continue paying this policy. The premium will always be €111.66 and the Life cover will remain at €100,000 while they continue payments.

  2. Guaranteed Life Cover €35,023: They can cease paying the €111.66 per month premium. They would be told at that time that they will have €35,023 Guaranteed Life assurance for the remainder of their life.

  3. Guaranteed Cashback €17,644: They can cease paying the €111.66 per month premium. They would be entitled to encash the policy for a guaranteed €17,644. There would be no further cover from this policy.

Unlike some of the older whole of life “with savings/encashment” benefits, these are not investment policies. The figures are guaranteed and you can see the different options available from year 16 onwards (every year you pay beyond year 16 increases the offer available). If the policy is cancelled before 16 years, then the above options are not available.

Survey reveals more women (36%) than men (24%) think that personal responsibility is at the core of overcoming the obesity epidemic

 A survey from a well known protection provider has revealed 48% of Irish people believe that the way to tackle the rising national obesity levels is through school-level education. A survey commissioned by the leading life assurance provider asked 1,000 people throughout the country their views on how they think Ireland’s expanding waist lines should be addressed.

The survey found a split in opinions between genders and age divides as to what is considered the most effective approach. More women than men, 36% as opposed to 24%, believe it’s up to each individual themselves to take personal responsibility if this is a health issue they face; with this view being most prevalent amongst those aged over 55 (46%).

While the healthy living lifestyle trend appears to be very popular in Ireland today, from the booming gym and personal training industries to the popularity of ‘healthy living’ advocates, such as TV personalities and bloggers, it’s hard to believe that now only 40% of Irish people are at a healthy weight.  

Obesity and its impact on Life Assurance

Life cover is different from most insurance products because it is priced based on a number of key criteria which take into account the insured individual’s lifestyle. It is one of the few insurance products which is tailored specifically for the person insured.

This usually means the healthier you are, the lower the cost of the cover. A person’s medical history and lifestyle always comes into play when underwriting life assurance as the cost of cover is based not only on the sum assured and the length of the policy, but also on the individual’s age, state of health and certain lifestyle factors. So, if you smoke, drink a lot of alcohol or are obese, your premiums will be higher to reflect the increased risks to insure someone that has a greater chance of medical issues and shortened life expectancy associated with smoking, liver damage and obesity.

Life companies follow a matrix compiled by reinsurers which give ratings for specific lifestyle factors which are analysed to determine pricing.  It’s important to note that if someone is about 10 pounds over their ‘ideal’ weight, the cost of their life cover should not be affected. If an individual is looking for life cover and would like to know more about how their weight or lifestyle may affect it, why not contact a Financial Broker. A Financial Broker will be happy to provide expert guidance around the available options based on individual needs.

 

Irish worrying less about money, health is still biggest focus……

According to research commissioned by a leading protection specialist, 37% of Irish people view money as their biggest worry this year. What is particularly noteworthy about these findings is that this is almost 10% less than the 46% who said that money was their biggest concern in 2016. The survey asked 1,000 respondents nationwide what their biggest worries were and what their biggest focus was in 2017.

Health was cited as the majority of people’s main focus (37%), followed by career (26%) and travel (13%). What is surprising is that there has been quite a drop in the number of people who identified money as their biggest concern in 2017 when compared with last year. This could this be an indicator that things are on the up for people financially as Ireland is on track to have the EU’s fastest growing economy for the fourth successive year and has a decreasing unemployment rate which last month was at a near 9-year low.

The survey found that after money, 22% worried about their family most in 2017, a big jump from the 14% who said the same the previous year. Meanwhile double the number of respondents said they were concerned with loneliness compared to 2016; 8% versus 4% respectively.

The survey results also highlighted the large difference that exists between the priorities of the younger and older generations surveyed. For 18-34 year olds the focus lies, understandably, much
more on their career (42%), health (19%) and family (13%). While an equal amount of 18-34 year old respondents (10%) said property and travel were at the forefront of their minds. For over 55s their
biggest priority was their health (60%) and travelling (27%).

Overall health is a big focus for every age group surveyed. It is the top focus for 35-54 year olds and over 55s whilst it is the second top focus for 18-34 year olds. One of the ways people are prioritising their health is shown by the uptake in more Health Insurance policies. The largest uptake increase has seen people in their 40s taking out policies, with almost 33,000 people between the ages of 40 and 49 joining a scheme since the start of 2015. As people are becoming more informed and involved in protecting themselves, there has been a noticeable increase in people interested in discussing Serious Illness cover and Salary Protection cover.

There is no escaping that money is still a big worry for many people throughout the country. Unfortunately managing household finances can be challenging. The thought about what might happen in the future that could adversely affect family finances, is never far from peoples’ minds, it would appear. Making contact with a local Financial Broker to discuss personal finances and the options available to people may be one way of helping to alleviate this worry.