Irish Life  have published our annual claims report where we paid out €204 million to customers and their families affected by injury, illness and death during 2015.  The data, which provides a valuable insight into the health of the nation, includes analysis of the illnesses and conditions that led to payments for 5,449 Life Insurance, Specified Illness Cover and Income Protection claims in 2015.

The analysis of the claims book shows that we paid out €48 million for 763 Specified Illness Claims with an average payment of €62,913.

Cancer accounted for 64% of the Specified Illness Claims with heart related conditions responsible for 18% of claims.

 Commenting on the data Gerry Hassett, Managing Director, Irish Life Retail said that the scale of the claims paid by Irish Life during 2015 highlighted the importance of people protecting themselves and their families. “When you consider that we paid an average of €4 million a week to people and families affected by illness and death, and that 40% of our specified illness claims were to people under 50 years of age, it really shows how insurance can help ease the financial burden for families at difficult times,” he said.

Get your Quote for Serious Illness Cover Now www.lowcostlifecover.ie/live-quote

Anthony Curran is an advocate for your financial future who takes a holistic approach to your needs and goals. He will work collaboratively with you to define what success and financial independence mean to you and how best to achieve them. Anthony is well qualified to provide long-term support and guidance on a variety of financial challenges and will help you focus on what you can control. Defining your own financial freedom will help you be more comfortable about retirement and the possibilities of creating the life you want. Whether you are single, married, or raising a family, your approach to financial well-being now will shape your life for years to come. www.lowcostlifecover.ie

We have published our annual claims report where we paid out €204 million to customers and their families affected by injury, illness and death during 2015.  The data, which provides a valuable insight into the health of the nation, includes analysis of the illnesses and conditions that led to payments for 5,449 Life Insurance, Specified Illness Cover and Income Protection claims in 2015.

The average annual Income Protection benefit amount was €19,380.

In the case of Income Protection, mental health illness was the biggest cause of claims paid, accounting for 19% of those unable to work during the year.  Both back pain and cancer were the second most frequent conditions, at 14% for each of these conditions.

Adrian Cardiff, Head of Income Protection Claims in Irish Life commented “Thankfully most workers who become ill or are injured do return to work after an absence. We provide the support and services, alongside employers, to help make this happen. For those unable to return to work for longer periods, we provide financial security through a very difficult time.”

Do you think stay at home mums need Life Insurance? Watch this and see. Yes it's a little American but the message is the same. It was close to 11 p.m. the December night when boxer Oscar de la Hoya lost his fight to Manny Pacquiao. The Virgens were saying goodbye to their extended family after watching the match together. Still basking in the glow of family and good food, they headed off to their house. On the way, their pickup was slammed by a hit-and-run driver. The truck rolled over, pinning Nicolas and wife Teresa inside. Son Gabriel and daughter Mayra managed to crawl out and were only slightly injured. When rescue workers arrived, Teresa was already dead. Nicolas had three broken vertebrae and multiple fractures in his arms. “In one second your life changes,” Nicolas says. After their injuries were tended to, the Virgens started picking up the pieces. Thankfully Teresa had life insurance to help them do it. Initially the couple wasn’t convinced that Teresa needed a policy of her own since she did not work outside the home. As a building contractor, Nicolas saw the rationale for his own life insurance. But their insurance professional Irene Henry made the case that there would be expenses if something were to happen to Teresa. “Think of all the things that Teresa does,” Irene recalls explaining to them. The life insurance allowed them to pay bills while Nicolas was out of work for nearly two years recovering from his injuries, including an amputated finger. It also helped with college expenses for Mayra and her older sister, Susana. If not for the insurance, Nicolas is certain that his family would have lost their home. “It’s like Teresa is still watching over us and taking care of us,” he says.

Hopefully the following examples will explain this and provide solutions for the tax liability

Example 1

John & Mary buy a house in joint names. They contribute equally to the deposit, the mortgage repayments and the joint mortgage protection policy.

John dies in the first year of the mortgage (House valued at €300,000)

The mortgage is cleared by the Mortgage Protection Policy

Mary inherits 50% of property (assuming held as joint tenants)

Threshold for Mary €15,075 at 33% on €134,925 = €44,525

Options

1. Increase Mortgage Protection policy by €45,000 (possible tax on €45,000 at 33% = €14,850)

or

2. Life of another policy for €45,000

Example2

Marylives withJohninhis house.Johnpaidthedeposit,andasthesoleearner paysthemortgagerepaymentsandthe joint mortgage protectionpolicy.

John dies after only two years of them living together (House valued at€300,000)

The mortgage is cleared by the Mortgage Protection Policy. Mary inherits 100% of property (John leaves this to Mary in his will) Remember, cohabiting couples have no automatic rights to their partnersproperty!!

Threshold for Mary €15,075, tax at 33% on €284,925 =€94,025

Options

1.   Increase Mortgage Protection policy by €95,000 (possible tax on €95,000 at 33% €31,350) or

2.   Life of another Life Cover policy for€95,000

 Remember if the conditions for Family Home Relief are not met then there could be significant tax implications for the survivor.

For further information on how to structure life assurance arrangements for cohabiting couples and for more details about the legislative and taxation changes resulting from the Civil Partnership Act and Finance Act(No3) please contact us on 01-6853818 or Mullingar on 044-9348531 www.lowcostlifecover.ie

The legal and tax information included in this technical guide is currently correct but subject to change. The examples included in this document are not based on any real individual circumstances and should not be constituted as advicein any particularinstance

Anthony Curran is an advocate for your financial future who takes a holistic approach to your needs and goals. He will work collaboratively with you to define what success and financial independence mean to you and how best to achieve them. Anthony is well qualified to provide long-term support and guidance on a variety of financial challenges and will help you focus on what you can control. Defining your own financial freedom will help you be more comfortable about retirement and the possibilities of creating the life you want. Whether you are single, married, or raising a family, your approach to financial well-being now will shape your life for years to come. www.lowcostlifecover.ie

Why do I need life insurance?

1. To Protect Your Family and Loved Ones

If your loved ones depend on your financial support for their livelihood, then life insurance is a must, because it replaces your income when you die. This is especially important for parents of young children or couples who’s partner will find it difficult if they no longer have the source of income provide by their partner.

You will also need to provide enough money to cover the costs of hiring someone to cover the day to day household tasks, like cleaning, laundry, cooking, childcare and everything else a growing family needs.

2. To Leave An Inheritance

Even if you don’t have any other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. This is a great way to set your kids up for a solid financial future and provide for any monetary needs that will arise.

3. To Pay Off Debts and Other Expenses

In addition to providing income to cover everyday living expenses, your family needs insurance to cover any outstanding debts, like the mortgage, credit cards and car loans.

Other expenses include funeral and burial costs that can easily run into the tens of thousands of dollars. You don’t want your spouse, parents, children or other loved ones to be left with any extra financial burden in addition to the emotional burden they’re already suffering.

4. To Add More Financial Security

Like most parents you probably want to know your kids will be well taken care of when you’re gone. You not only want them to get a quality college education, but to provide for other life ventures like getting married or starting a business. For this reason, additional coverage is absolutely essential while your kids are still at home.

5. To Bring Peace of Mind

No amount of money can ever replace a person. But more than anything, life insurance can help provide protection for the uncertainties in life. Without a doubt, having life insurance coverage will bring you and your family peace of mind. It’s one thing you can be sure of and no longer question if they’ll be taken care of when you’re gone.

None of us know when we’ll pass away. It could be today, tomorrow, or 50 years into the future, but it will happen eventually. Life insurance protects your heirs from the unknown and helps them through an otherwise difficult time of loss.

For your low cost life insurance quote log onto www.lowcostlifecover.ie

Anthony Curran is an advocate for your financial future who takes a holistic approach to your needs and goals. He will work collaboratively with you to define what success and financial independence mean to you and how best to achieve them. Anthony is well qualified to provide long-term support and guidance on a variety of financial challenges and will help you focus on what you can control. Defining your own financial freedom will help you be more comfortable about retirement and the possibilities of creating the life you want. Whether you are single, married, or raising a family, your approach to financial well-being now will shape your life for years to come. www.lowcostlifecover.ie

“Ireland’s 140,000 co-habiting couples should be aware of potential tax liability

when it comes to Life Cover claims.”

Most co-habiting couples are unaware of the potential tax implications for them on claims of Life Cover policies.

They can however, legitimately manage the potential tax implications on their Life cover claim, by arranging it on what is known as ‘Life of another.’

Anthony Curran Financial Consultant with Low Cost Life Cover.ie explains, “According to Census 2011 there are over 140,000 co-habiting couples in Ireland, of which approximately 60% have children. The likelihood is that although these people are not married, they will have or will want to have financial protections in place such as Life Cover, to ensure security for their family and/or partner, in the event of the premature death of either partner.”

However, anecdotal evidence suggests that many of these people may be under the false assumption that, if either of them were to pass away, their partner will automatically be entitled to the proceeds of the deceased’s Life cover policy tax free. And they then can in turn, use it for example to provide an income for their family, pay off debts or cover ongoing expenses such as education fees.. Therefore they would think, leaving their surviving partner and family in a secure financial position. The reality however, is far more complex, and the remaining partner may face a major tax bill.

For example, on a Life cover policy of €400,000 in this domestic co-habiting scenario, the surviving party could potentially be liable for an inheritance tax bill of an eye watering €127.025.25, if they have not paid for any of the Life Cover premiums themselves.

Anthony Curran say’s that this is an issue which will become increasingly prevalent in years to come because according to the CSO statistics, co-habiting couples are by far the fastest-growing type of family unit in Ireland. Figures rose from 77,600 in 2002 to 121,800 in 2006’ accounting for 11.6% of all family units, and this has since risen to 143,000 in 2011.

Anthony went on to say, “The tax position of a Life cover policy in the event of death is naturally not something many of us actively think about. For married couples this doesn’t present a problem as there are no tax liabilities resulting from inheritances between them, regardless of the value of the assets. The same unfortunately doesn’t apply to co-habiting unmarried couples.”

He stated, “As a cohabiting couple and as such, not married or a civil partner, you may be liable to Inheritance Tax.

That’s because you will be treated as ‘strangers’ under tax law, and more to the point, the tax exempt threshold is only €15,075. Inheritances over this amount are subject to tax at 33%.”

As an example, let’s say the deceased partner pays for the Life Cover of €400,000 solely themselves from their own bank account. As part of a cohabiting couple, you as the surviving partner and based on the terms of the will, received the value of the Life cover policy of €400,000. You could now be liable for Inheritance tax of a whopping €127,025.25 (€400,000 – €15,075 = €384,925 x 33% = €127,025.25.).

Even if you have equally paid for the Life cover policy between you from your joint account, as the surviving partner of a cohabiting couple, if you are paid the policy proceeds of €400,000, you could still be liable for a tax bill of over €61,000 (€400,000/2 = €200,000 – €15,075 = €184,925 x 33% = €61,025.25).

The Revenue will look for evidence to determine who has been paying the premiums. If it is clear that the premiums were paid from a joint bank account and contributed to by both parties, then it is deemed that 50% of the proceeds have been inherited. So you face a lesser, but potentially still substantial tax bill.

It may not seem fair or equitable, but it’s the law. Anthony has some good news on this potentially worrying issue for co-habiting couples. “Thankfully, there is a simple and legitimate solution to this potential tax liability on the Life cover policy proceeds, whereby each partner pays for the other partner’s Life assurance policy, from their own bank account and income. This is known as ‘life of another’ in industry parlance. In this scenario, where one partner has paid the others premiums (and vice versa) and if the other partner died, there would be no tax liability as it would be deemed that the surviving partner paid for the benefits and therefore is entitled to the proceeds.”

This is a complex area and it’s very important that co-habiting couples are aware of this potential tax liability as well as the potential solutions and should seek professional legal and taxation advice call us on 01-6853818 or log onto www.lowcostlifecover.ie

Anthony Curran is an advocate for your financial future who takes a holistic approach to your needs and goals. He will work collaboratively with you to define what success and financial independence mean to you and how best to achieve them. Anthony Curran is qualified to provide long-term support and guidance on a variety of financial challenges and will help you focus on what you can control. Defining your own financial freedom will help you be more comfortable about retirement and the possibilities of creating the life you want. Whether you are single, married, or raising a family, your approach to financial well-being now will shape your life for years to come. www.lowcostlifecover.ie

Christmas is an exciting time of year but many of us are short on time and money.  If you’re trying to tighten Santa’s belt this Christmas, follow our Christmas shopping tips this festive season.

• Leave the credit card at home and bring cash or your debit card instead. Credit card debt can be very expensive if you can't repay it in full immediately or within a few months. When you are spending the cash in your pocket or in your bank account, you will be much less likely to overspend than if you pay with a credit card.
• If you do need to use your credit card, then take a look at our credit card cost comparison. There are still some providers offering 0% interest on balance transfers. If you can't afford to pay your Christmas credit card bill in full, you could take advantage of one of these offers in the New Year. But before you sign up, make sure to check what rate will apply when the introductory offer ends and if there are any conditions attached to it.
• List everyone that you intend to buy for, then budget a reasonable amount that you can afford to spend on each person. Making a shopping list will also help you avoid impulse buying and keep track of your spending. Our Christmas budget planner can help you plan for and keep track of all your expenses.
• Avoid shopping at the last minute and try to arrange to go shopping when it’s quieter.  Shops are a lot quieter late at night or first thing in the morning.  Leaving yourself plenty of time and avoiding busy shopping times will make your Christmas shopping a bit easier.
• Try a new approach to buying presents. You could agree a spending limit with your friends and family or try an option like a Secret Santa, so each person only has to buy one present. Or if there is a special item that you really want to give to someone, consider splitting the cost with a friend or relative. Keep an eye out for coupons or deals on gifts wherever you can.
• Do your research. If you have a present in mind, shop around and compare prices, both in store and online.  Keep your eye out for discounts and promotional offers.  If you do plan to do some shopping online, be careful. What might seem like a great deal could be more expensive when you add on delivery charges, so be sure to take them into account.  Make sure you leave plenty of time for delivery too.
• Don’t get caught out by credit. In the run up to Christmas, personal loans and in-store credit may look like attractive options, especially for larger purchases like PCs, electrical equipment or furniture, where stores may offer you 0% finance for a period of time. Before signing up to store credit or a personal loan, consider the full costs and not just the monthly repayment. Would the repayments still be affordable if your income dropped for any reason, or if you had an unexpected expense?
• Be realistic with your food shopping.  It can be easy to buy more than you need, but bear in mind that most shops are only closed on Christmas Day and New Year’s Day, so there’s no need to go overboard. Read our helpful money saving tips on groceries.

Anthony Curran is an advocate for your financial future who takes a holistic approach to your needs and goals. He will work collaboratively with you to define what success and financial independence mean to you and how best to achieve them. Anthony Curran is qualified to provide long-term support and guidance on a variety of financial challenges and will help you focus on what you can control. Defining your own financial freedom will help you be more comfortable about retirement and the possibilities of creating the life you want. Whether you are single, married, or raising a family, your approach to financial well-being now will shape your life for years to come. www.lowcostlifecover.ie