What Is Family Protection?
Many families have not considered the financial impact a premature death or unexpected illness would have on their family.
We cannot predict what life has in store and when it comes to things like premature death or specified illness, we often think it will never happen to our family. However in truth we all know someone who has been affected.
At Peavoy Financial Planning we remove these risks from families that can’t afford them and hand them to a big company that can. We feel family protection forms the cornerstone of a solid Financial Plan. It isn’t some luxury to be taken out when you can afford it. It is necessary to have because your family can’t afford to be without it.
Why Peavoy Financial Planning?
One of the key benefits of working with Peavoy Financial Planning is, all clients will deal with the Business Owner when conducting this business.
We will meet with our clients at a time that suits them, either at their home or in our office. We feel it is important for everyone to shop around for their Family Protection. At Peavoy Financial Planning we do this for you. We will provide you with quotations from six different product providers. These are Aviva, Friends First, Irish Life, New Ireland, Royal London and Zurich. This ensures you will get offered the Best Price Family Protection policy available. From time to time some of the Product Providers offer discounts on Term Assurance. At Peavoy Financial Planning, we pass this discount fully onto our customers.
Not all Family Protection policies are the same and some have more additional benefits than others. We will point out these to you at quotation stage. At Peavoy Financial Planning we listen. We work out an affordable plan for you, to give your family the security you want for them. We will help you decide how much life cover you need, how long do you need it for, should it be level or linked to inflation and what insurance company you should place it with.
How is Family Protection Structured
Family protection is normally provided under either Term Assurance contract or a Guaranteed Whole of Life contract. The following are brief explanation of these contracts plus some Optional Benefits. These Optional Benefits can include:
- Specified Illness Cover
- Cancer Cover
- Conversion Options
- Hospital Cash
- Broken Bones Benefits
- Personal Accident Benefits
- Monthly Income on Death
This is the cheapest form of cover. It is insurance cover for a specific period of time. The key benefits of term assurance are
- It protects your family from a substantial financial burden on death of the life assured by payment of a specific lump sum payment which is chosen at outset.
- You can add cover for specified illnesses. This also pays out a lump sum in the event of you be diagnosed with one of the specified illnesses covered under the policy
- You can cover both parents on the one policy
- You can add Monthly Income cover which pays out a regular income from the time of death to the end of the policy term.
- You can add a number of optional benefits discussed below to Term Assurance, such as Cancer Cover, Personal Accident Benefit, Hospital Cash, Broken Bones Insurance to name but a few.
Guaranteed Whole of Life Cover
Guaranteed Whole of Life cover is different from term assurance in that it lasts for a lifetime and not a specific term. The key benefits of Guaranteed Whole of Life Cover are:
- It provides a cash lump sum to your family whenever you die
- It can be set up for a specific level of cover suitable to your needs.
- It can be used to cover your Funeral Expenses
- If it is set up under a specific structure called Section 72, the proceeds of the policy can be used by a family to pay some or all of the Inheritance Tax they are liable for on your death.
Specified Illness Cover
Specified Illness Cover pays a lump sum if you are diagnosed as suffering from one of a number of specified illness covered under your contract. These illnesses include Cancer, Heart Attack and Stroke which are the main reason for claims. The cost of Specified Illness payment is higher than the cost of Life Cover because the chance of being diagnosed with a specified illness during the term of your policy is significantly greater than the risk of death.
One of the main specified illnesses affecting Irish families is Cancer. Cancer Cover pays a specific lump sum if you are diagnosed with specific types of cancer during the policy term. Whilst it costs much less than Specified Illness Cover, Cancer cover can provide real peace of mind to a Family. If you have been previously declined Specified Illness Cover, it is possible that you may be accepted for Cancer Cover, depending on what the underlying condition you were declined for was.
This is also sometimes known as Guaranteed Cover Again or Continuation Option. This benefit allows you to convert your cover to another plan at any stage throughout the term of your plan without the necessity to provide any new evidence of health for your new plan.
Hospital Cash pays you a daily amount if you are in hospital for over 3 days (72 Hours) up to a maximum of 365 days. The daily amount is selected at policy outset.
Broken Bones Benefit
If you play sport, work with animals, machinery or are Self Employed Broken Bones Cover may be of interest to you. While a broken bone is not life threatening, it can stop you from working for weeks or even months. Broken Bones Benefit will pay you a lump sum of between €1,000 and €3,000 if an accident results in a number of specific injuries.
Personal Accident Benefit
This benefit pays you a weekly amount of up to 50% of your average weekly earnings if unable to work due to an injury resulting from an accident. This benefit is normally paid after a deferred period of 2 weeks up to a maximum of 52 weeks.
Monthly Income on Death
Pays a Monthly Income on Death for the remainder of the chosen policy term