Colm J Kelly Financial Planning offers Personal Protection advice on protecting your income in the event of your death.
You can protect your family against financial loss due to death as follows:
- Life Cover: To financially protect your family in the event of death, it makes sense for your income to be insured as your loved ones depend on you financially. A life insurance policy pays out a lump sum in the event of your death that replaces your income.
- Mortgage Protection: To ensure the borrowings are covered in the event of death during the specified term of a loan. If you are under 50 years of age when starting your main home mortgage, your lender must make sure you have a life policy to clear the loan in the event of death. This is to make sure your family home would not have to be sold to pay off the mortgage. If you are over 50 you do not need this cover or if your mortgage is on an investment property, but it can be beneficial.
- Specified Serious Illness: CJK Financial Planning offers advice on protection your income in the event of a specified serious illness. Specified Serious Illness also known as Specified Critical Illness Insurance, pays out a tax free lump sum if you are diagnosed with one of the specific illnesses or disabilities that your policy covers. Specified Serious Illness policies are not the same as private health care plans such as those provided by VHI or Quinn Healthcare, these plans pay your medical fees and costs up to certain limits but do not pay out any cash benefit. Typically, Specified Serious Illness Insurance covers a diagnosed and certification of a prescribed specified serious illness such as a Heart Attack or Cancer.
- Income Protection (PHI cover): CJK Financial Planning offers advice on income protection. An income protection policy pays a regular weekly benefit that replaces part of your lost income due to a long term illness or disability on the basis that you cannot carry out your own remunerative occupation. The amount paid is on top of any other benefits you may be entitled to. Income protection is particularly important for self employed individuals who in the event of sickness or ill health are not entitled to social welfare payments from the state. Income protection policies are not the same as those provided by VHI or Quinn Healthcare