Keep your life on track and take care of your greatest asset
As we get down to the business end of the county hurling and football championships, I overheard a conversation on the side-line last weekend which included comments like; “He doesn’t get paid if he is out of work” and ” He is self employed you know. If he gets injured he wont be able to work.”
Players who haven’t trained all season, return at this time of year for one last hurrah at getting their hands on a county medal at some level, with their club.The rugby and soccer season is also starting, so September always acts as a timely reminder for me to raise awareness about some of the ” income insurance benefits ” that are available in the market place to give families some peace of mind, if the main breadwinner in the household is unable to work. In this post I have a look at three different benefits that may help you in this regard.
Income Protection – We rely on our income to fund everything from what’s in the fridge to holidays. If you are age 40 and earn €50,000 per year, between now and your State Pension Age of 68, you would earn €1.4 million . As a result income is without doubt most families greatest asset and is well worth insuring. If illness strikes and you are unable to work, Income Protection can help provide an income for everyday living and ensure you can continue to meet the mortgage repayments and household bills. It is the most comprehensive solution available today to replace your income if you are unable to work. You can protect up to 75% of your earnings, less any social welfare payments you may be entitled to. Income Protection benefit becomes payable after your chosen deferred period which you choose at the policy outset. This generally ranges from 4 weeks to 52 weeks. Income Protection is paid right up until your chosen retirement age OR until you return to work, whichever is sooner. It may not cost as much as you think because the monthly premium you pay for Income Protection attracts tax relief at your marginal rate. Better still if you are a Company Director or a Key Employee, you may get your company to pay for it. At Peavoy Financial Planning we work with five different providers of Income protection which ensures you get the best contract at the best price. Qualification for Income Protection depends on what occupation you work in. If you would like to determine if your Occupation qualifies for Income Protection Benefits please do make contact with us
Personal Accident Benefit – Pays 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 payment begins after two weeks and is paid for a maximum of 52 weeks. Qualification for this benefit is also determined by your occupation. This benefit is an optional benefit that can be purchased with Life Cover
Broken Bones Benefit – Pays a fixed lump sum of between €1,000 and €3,000 if the insured suffers one of the broken bones covered. These include but are not limited to fracture of arm, fracture of ribs/collarbone, fracture of vertabrae, shoulder blade or sternum, fracture of upper leg, dislocation of ankle etc. While not Life Threatening a broken bone can stop you from working for weeks or even months. Broken Bones cover is an optional additional benefit that can be purchased with life cover.
When the unexpected happens, it is sometimes hard to keep going. Make sure you have peace of mind for you and your family by exploring how you can protect some of your income today.
David Peavoy BA, QFA, LIAP is the Owner of Peavoy Financial Planning whose practice is based in Office 5b, Portlaoise Enterprise Centre, Clonminam Business Park, Portlaoise, Co Laois.
David Peavoy T/A Peavoy Financial Planning is regulated by the Central Bank of Ireland
Disclaimer: All data and information provided within this blog is for information purposes only. It should not be taken as specific advice for your situation. Peavoy Financial Planning makes no representations as to the accuracy. completeness, or suitability of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its use