Because you and your family deserve the very best care: An exclusive optional benefit available with selected Aviva Protection policies.

We’ve teamed up exclusively with Best Doctors® to offer Overseas Treatment Plan –an additional optional benefit available with selected Aviva Protection policies. Overseas Treatment Plan makes treatment abroad possible if you’re suffering from a covered cancer or neurology, as it will pay a pre-determined cash benefit amount.

When you add-on Overseas Treatment Plan to your Aviva Protection policy, the Plan will also cover your children (or children of your spouse/ civil partner; up to the age of 21).

How Overseas Treatment Plan works

1.      Investigate: On diagnosis of one of the covered illnesses requiring treatment, you have access to the expert Second Medical Opinion service offered by Best Doctors through our Aviva protection policy.

2.      Choose: After reviewing the information, and if the condition is eligible, Best Doctors will recommend up to four treatment centres of excellence (with at least one of them being in the United States) and you choose where you would like to be treated. Best Doctors will help you make decisions and be available to answer any questions.

3.      Arrange: Best Doctors arranges your hospital admission and coordinates and pays for travel and accommodation for you and a companion. If it’s your child needing treatment, then two companions can travel.

4 .Treatment & Cash Payment: You receive treatment at your chosen hospital, and on your return home, we’ll pay a predetermined cash amount based on the number of days you spent being treated. See the section ‘What’s Covered?’ for details of the benefits payable. Also see the section ‘Exclusions’.

How much does it cost?

€12.50 monthly per life insured. Please note: The premium for Overseas Treatment Plan benefit is reviewable and may change (increase or decrease) on each anniversary of the start date.

Eligibility & Qualifying Conditions

·         You can only take out Overseas Treatment Plan with an Aviva Protection policy. It can’t be taken out as a standalone policy and we’ll only cover you under one Overseas Treatment Plan. Overseas Treatment Plan is subject to underwriting and will be underwritten along with the main protection policy.

·         Applicants for Overseas Treatment Plan must have reached the minimum age and be under the maximum age which applies to their main Aviva Protection policy in order to apply for this plan.

·         Policyholders must be both tax resident and reside at an Irish address at the time they complete the application form and throughout the term of the policy.

·         The duration of a patient’s stay necessary for treatment as an in-patient in the nominated treatment centre must be a minimum of 48 consecutive hours (24 hours for follow-up treatment).

·         If the main Aviva Protection policy is being taken out on a joint or dual-life basis, then each life assured will need to apply for- and pay the premium- for Overseas Treatment Plan separately. We’ll add the premium for Overseas Treatment Plan to the premium for your main protection policy.

·         The claimant must be fit to travel and hold valid travel documentation as required for travelling to the location of the nominated treatment centre.

What’s covered?

Overseas Treatment Plan provides the option of treatment abroad as it will pay a pre- determined daily cash amount - plus covered travel and accommodation expenses - in the event of diagnosis with a covered cancer or neurology. It helps give you and your children financial freedom to access high quality treatment in leading US and European hospitals.

Daily Benefit Amount

Once you or your child is eligible, you’ll be paid a daily benefit amount depending on the length of stay at the nominated treatment centre, for up to 60 days. The daily cash benefit is paid to you on your return home.

Table of benefits

Nominated treatment                                                United States            Europe

centre location

Number of days of

overnight stay in nominated                    Day 1-7     Day 8-60       Day 1-7     Day 8-60

 treatment centre.

Amount of benefit                                    €30,000      €100             €30,000      €100

 per day      per day           per day      per day

Best Doctors will advise you in advance of travel of the likely cost of treatment in each of the recommended treatment centres. If the total cost of treatment is less than the daily benefit amount above, the surplus amount is yours to keep in this instance. In the event that the total cost of treatment is more than the daily benefit amount, it’s your responsibility to meet any outstanding payment due. Best Doctors will assist you in arranging direct payment to the hospital.

Subject to the minimum & maximum benefit duration:

If your stay at the nominated treatment centre is less than 48 consecutive hours (24 consecutive hours for follow up treatment), then the treatment isn’t covered under the policy and you’ll be liable for all costs including treatment, travel and expenses.

If your stay at the nominated treatment centre is more than 60 days, continued treatment is not covered under the policy and you’ll be liable for all costs including travel and expenses after 60 days have passed. In this instance, we will still cover your return home travel costs.

Medical conditions covered

Cancer treatment

Any malignant tumour positively diagnosed with histological confirmation and characterised by the uncontrolled growth of malignant cells and invasion of tissue. The term malignant tumour includes leukaemia, sarcoma and lymphoma except cutaneous lymphoma (lymphoma confined to the skin).

For the above definition, the following are not covered:

·         All cancers which are histologically classified as any of the following: pre-malignant; non invasive; cancer in situ; having borderline malignancy; or having low malignant potential.

·         All tumours of the prostate unless histologically classified as having a Gleason score greater than 6 or having progressed to at least clinical TNM classification T2N0M0.

·         Chronic lymphocytic leukaemia unless histologically classified as having progressed to at least Binet Stage A.

·         Any skin cancer (including cutaneous lymphoma) other than malignant melanoma that has been histologically classified as having caused invasion beyond the epidermis (outer layer of skin).

Neurosurgery

Cover is provided for any surgical intervention including minimally or non-invasive techniques of:

·         the brain (or any other intracranial structures); or

·         benign tumours located in the spinal cord.

Travel & Accommodation expenses covered

Overseas Treatment Plan pays for economy class travel and 3-4 star accommodation costs for you and a companion. If it’s your child, or the child of your spouse/ civil partner who is ill these expenses will be paid for both parents (or a parent and companion).

Are the benefit amounts enough to pay for my treatment?

They're based on Best Doctors' experience as a medical services provider and expertise in the insurance sector. In the event the cost of the treatment is more than the daily cash benefit, Best Doctors will advise you if this, and your options. If this happens, then you will be responsible for paying any additional or outstanding charges due to the treatment centre. Conversely, if we pay your benefit entitlement, but the cost of your treatment is less than the amount of the daily cash benefit, the surplus amount is yours to keep. You might want to use the money to help you get back on your feet following treatment.

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

Deciding to buy life insurance is one thing. Deciding how much cover you need is quite another.

The most common motive for buying Life Insurance is to make sure your loved ones will be financially secure if you’re not around, but it can be all too easy to underestimate exactly how much cover is enough.

Here’s our guide to some of the things you’ll need to consider…

Don’t just protect your mortgage

When taking out life cover, many people simply opt to choose a sum equivalent to their mortgage.

But while your mortgage is likely to be your biggest monthly outgoing, there are lots of other bills that will need to be paid if you’re not around.

So as well as insuring the amount you still have outstanding on your mortgage, think about all your other expenses too. These include credit card debts, personal loans, and any car finance schemes you might be paying for.

Look at all your other outgoings too - what sort of lump sum would your family need to cover not only immediate expenses following your death, such as your funeral, but also longer term costs, such as tax and energy bills.

Providing for your dependents

If you’ve got children, you should think carefully how much they need, every year until they can stand on their own two feet financially.

If you’re paying school fees, for example, you’ll need to be certain these are covered if you die.

Even if you’re not working, but are bringing up your children, life cover is still important, as whoever is left looking after your children in the event of your death may not be able to stay at home to care for them.

That means you’ll need to think about how much it would cost to replace the childcare you were providing.

If you’re hoping your children will eventually go to university, then you might also want to include tuition fees and their accommodation costs in your sum insured.

The more life insurance you opt for, the higher your premiums will be. But it’s essential not to skimp cover if you can afford the premiums.

If you do, your loved ones could be left high and dry financially after your death.

Check existing cover

Before buying life insurance, always check whether you’ve already got cover in place, as you don’t want to pay for cover twice.

Find out from your employer what sort of pay out your dependents might get in the event of your death.

Employers often provide ‘death-in-service’ benefits that can be up to four or five times your salary, which would reduce the amount of life cover you needed to take out.

Which type of cover?

There are different types of life insurance, so you’ll need to think carefully which sort of policy is right for you.

There are two main types:

- Term insurance is the cheapest and most popular kind of cover. It will pay out a lump sum if you die within a set period of time, such as the number of years left on your repayment mortgage. People looking to protect their dependents plump for term cover.

- Whole-of-life insurance offers protection for your lifetime, and therefore premiums are much steeper than they are for term cover (because you’re guaranteed to die at some point). This can be used as a tax-planning and investment product.

You can bolster your protection portfolio further with critical or serious illness insurance, which is often bought alongside term cover.

Critical/serious illness insurance pays out a lump sum on diagnosis of one of a list of lengthy illnesses such as cancer and heart disease.

Single, Joint or Dual Cover

What’s the difference between single, joint, and dual Life Assurance?

A single life contract covers one person, and pays out on the death of that person.

A Dual Life Cover policy is a life insurance policy that provides cover for two people and continues after the first person dies. It pays out benefits on each death. It could potentially pay out twice during the course of the policy

A joint life contract covers two people, and pays out on the first death of either person covered, and therefore pays out only once.  This is why Joint Life Cover is usually cheaper than dual life cover.

Please note: This blog is for information purposes only and not to be taken as advice. We advice all our clients to seek the advice of an independent Financial Adviser before carrying out any financial transaction.

Struggling to put spare cash aside each month? These top tips will give you a helping hand.

 Having a savings cushion to fall back on in case you’re made redundant or your boiler breaks down is important, but managing to put money aside each month can be a challenge, to say the least

So here are five steps to help you get into the savings habit.

1. Draw up a budget

A good place to start is with a list of your earnings and outgoings. This will help you to see what you are spending, and show you how much – if anything – you have left once all your bills and other payments have gone out.

It should also help you to assess whether you can make any cutbacks. You might, for example, decide to ditch your gym membership or reduce the amount you spend on your weekly food shop by buying fewer branded products.

2. Shop around and switch

If you’re finding it hard to make cutbacks, see whether you can free up some cash by switching to a better deal. Could you switch to a cheaper mobile contract or broadband deal, for example?

And when it’s time to renew your car, home or Life Insurance make sure you don’t auto-renew with the same insurer – shop around for a cheaper deal instead. Check out www.lowcostlifcover.ie/live-quote for Life Insurance and Mortgage Protection.

Similarly, why not see if you could pay less for your gas and electricity by switching to a cheaper energy tariff.

 3. Set a monthly target

Once you’ve done that, it should be easier to assess whether – and how much – you can afford to pay in to a savings account each month.

Make sure your target is realistic. There’s no point overstretching yourself or deciding you’ll sacrifice your annual holiday just to meet your target, as you’ll only end up resenting saving or give up all together.

4. Find an account that suits you

Once you’ve set your target, you’ll need to find the right home for your savings.

If you want to be more disciplined with your saving, a good option is a regular saver account.

It’s also a good idea to put some money in an easy access account as this type of account allows you to get your hands on your cash whenever you need it which could prove vital in an emergency.

You can also pay funds in to an easy access account as and when you want to.

Just keep in mind that some easy access accounts will limit the number of withdrawals you can make in a year.

PTSB have a launched a new explorer current account which seems interesting. Check it out here

5. Set up a monthly direct debit

Once you’ve opened your savings account, an easy way to ensure you pay in to it each month is to set up a monthly direct debit from your current account.

It’s a good idea to do this just after you’ve been paid so the money goes out straightaway and you are not tempted to spend it on something else.

Please note:  These savings tips are for information purposes only and should not be taken as Financial Advice. We advise you seek the advice of a Qualified Financial Adviser before carrying out or changing any financial products.

Life is full of regrets. Don't make how you managed your money one of them.

Here are eight financial decisions you can make now that you’ll never regret. Make the moves on this list soon, and you’ll dramatically increase your odds of a happy financial future.

1. Save More for Retirement

How much money will you need each year to enjoy a happy and healthy retirement? That depends on what you want to do after you leave the working world. You’ll need more money if you plan to travel the world, and less if you envision days spent reading, binge-watching TV, and playing with your grandchildren.

A survey released last April by the Employee Benefits Research Institute suggests that more workers understand they’ll need large amounts of money to enjoy their retirement years. Put away as much as you can each year now, even if your retirement days seem far away.

2. Building an Emergency Fund

What happens if your boiler conks out today? What if your car needs to be replaced? If you’re like too many people, you’ll put the cost of replacing these items on your credit card, building your debt.

The better option is to draw from an emergency fund of cash that you have already saved, usually in a savings account. Financial experts recommend that you build an emergency fund that can cover at least six months of your daily living expenses.

This might seem daunting. But if you deposit what you can each month — even if it is as small as €100 — that emergency fund will steadily grow.

3. Pay Off Your Credit Cards

Carrying a balance on your credit cards each month is a terrible financial decision. That’s because cards come with such high interest rates — sometimes 18% or more. This makes your monthly debt grow by too much, even if you don’t add any new purchases to your cards.

Don’t just make the minimum monthly payment on your cards. If you do this, it will take far too long to pay off your credit card debt. Say you have a credit card with a balance of €5,000 and an interest rate of 18.9%. If your minimum monthly payment is 4% of your outstanding balance, it will take you more than 11 years to eliminate this debt, even if you don’t make any new purchases with this card.

The better move is to always pay more than the monthly minimum. And don’t buy items with your cards that you can’t afford to pay off at the end of every month.

4. Pay Your Bills on Time Every Month

A single missed payment — on credit cards, mortgage loans, car loans, and other debts — can drop your credit score. That missed payment will also stay on your credit report for five years.

Decide today to never make a late payment again. Having a low credit score makes it difficult to qualify for loans or credit. When you do qualify for these loans, you could be faced with high interest rates.

5. Buy a Home That You Can Actually Afford

It’s tempting when home shopping to stretch your budget to get into a bigger, more expensive home. But buying a home that’s out of your budget, even by a bit, can be a big financial mistake. Those monthly mortgage payments can quickly become a burden.

Instead, buy a home that you can comfortably afford, even if it’s not your dream residence. Mortgage experts recommend that your total monthly housing expenses, including your estimated new mortgage payment, be no more than 30% of your gross monthly income. Follow this guideline if you don’t want to feel the strain each time your monthly mortgage payment comes due.

6. Track Your Spending

You might be surprised by how much you spend each month on take-out lunches or morning coffee runs. But if you create a spending book and track those expenses, it might help you make lifestyle changes that can add up to big savings each year.

A spending book is just a notebook in which you record all your daily purchases for a set period of time, usually anywhere from two weeks to two months. Once you’re done tracking your expenses, add them up. This gives you an idea where you are overspending. (You can also use automated tracking at free sites like Mint.com.) If you’re spending too much on those morning coffees, for instance, you might decide to limit your time at Starbucks to twice a week instead of five times.

7. Create a Household Budget

You might shudder at the thought of drafting a budget for your household. But you can’t get control of your finances if you first don’t know exactly how much money is coming in and going out of your home each month. Fortunately, creating a budget isn’t difficult.

First, write down the income you receive each month. Then write down those monthly expenses that never change, everything from your mortgage payment to your car payment to your student loans. Then, write down those payments you make each month that fluctuate a bit. This would include your utility bills, credit card bills, and transportation costs to and from work. Estimate these. Finally, include estimated amounts for monthly groceries, entertainment, and eating out.

Once you have these figures, you can determine how much money you should have left at the end of the month. Armed with this information, you can figure how much money you can save, invest for retirement, or put away for a child’s college education.

8. Save First, Then Buy It

You want that new computer or that high-end flat-screen TV. It’s tempting to simply use your credit cards, but the better move is to save up for that big-ticket non-necessity, and only buy it when you can pay for it with cash.

This takes patience, of course. It might take you several months to save up for that new TV. But you’ll enjoy your new electronic treat more if you don’t have to dread next month’s credit card bill.

One afternoon my parents sat my sister and me down for a family meeting that would change our lives forever. “I have bladder cancer,” my father told us.

He had previously one of his kidneys removed that was cancerous. My father never told us because he was assured it was a low-grade cancer. The doctors confirmed he had stage 4 bladder cancer. It was an incurable and inoperable cancer and his life expectancy was limited.

August 2010 was the beginning of the end. His condition worsened, and he was admitted into the intensive care unit due to renal failure followed by a brain aneurysm and coma. At the time, I didn’t know what to think, but the worst feelings came over me. I was scared I would never be able to say good bye to my dad or tell him that I loved him.

On Nov. 19, 2010, the day before my 15th birthday, I watched my father take his last breath at 4:20 A.M.

My father’s death impacted me emotionally. He was my best friend. We were inseparable! My freshmen year of high school was one of the most difficult times in my life. His death made me realize that my life would never be the same.

All the repercussions of my dad’s death

My father’s death greatly affected our family financially. After three years of treatment, our savings were completely depleted, as he was being treated at and travelling to Hospital.

My father didn’t have adequate life insurance coverage. I have had to grow up quickly and work to help my mother.

My mother was faced with medical bills and major house repairs. The exterior walls of the house, chimney and duct units in the attic had holes. Rodents were in the attic and walls of the house. My mother had not worked so she could care for my father.

My father didn’t have adequate life insurance coverage. I have had to grow up quickly and work to help my mother.

Had my father had life insurance we would not be in the position we find ourselves today. His death has made my future plans to attend college even harder to achieve. With the values my parents taught me, I have worked hard to achieve high academic accomplishments and I was accepted into University.

Life would certainly be different if my father was still here and cancer free. However, this isn’t the case and my only hope is that I would be blessed with financial help in order to pursue my educational goal. With all I went through with my father, it has inspired me to become a doctor of radiology. With that degree I hope to help others in similar situations as my father. I am a strong and better person today as a result of all the obstacles I have overcome. I have learned how important life insurance is to a family with young children. 

“If I didn’t have this income protection policy, I would have had to sell my house”

Clodagh, Dublin

The financial headache you face when an illness or accident prevents you from working can be severe. Income protection is a policy that provides an alternative income if you find yourself in that situation. It means you can focus on your recovery.

It can provide you with up to 75% of your normal income when you're off work due to illness or injury - helping to cover regular expenditure & ensure minimal lifestyle changes for you and your family.

Income Protection

When the unexpected happens, we know that what matters is peace of mind from a policy you can trust. An income protection policy:

• ·         Can pay up to 75% of your usual income*, allowing you to continue to take care of your loved ones

• ·         Some plans qualify for Tax Relief at your marginal rate

• ·         Pays a daily replacement income if you are in hospital during your deferred period

What exactly does Income Protection cover?

Income Protection can replace up to 75% of your usual income less any social welfare payments when you’re off work due to illness or injury. You pay a monthly premium determined by your age, occupation and health status.

If you are absent from work due to illness or injury, income protection provides you with a replacement income after a deferred period which is chosen by you at the outset of your policy.

Why would I need Income Protection?

When illness or injury leave you unable to work you need the financial security of a product that keeps you on top of the bills that matter including:

• ·         mortgage payments
• ·         car loans
• ·         food bills
• ·         rent and more

If you do not have an alternative source of income, how would you maintain your lifestyle? In 2015, the State Illness Benefit amounts to just €188 per week. Could you survive on this?

Income protection helps take care of your financial needs while you are focusing on recovery - a time when money worries should be the last thing on your mind.

What are the chances?

• ·         One in three people in Ireland will develop cancer during their lifetime (Irish Cancer Society, 2013)
• ·         An estimated 30,000 people are living in the community with disabilities as a result of a stroke (Irish Heart Foundation, 2013)
• ·         With medical advances, people are more likely to survive serious illnesses but this means that more people are likely to take prolonged periods off work for treatment and recovery. This could have a huge impact on their ability to earn.

While Life Insurance pays out after you die, Specified Illness and Income Protection cover pay you while you are living. You need the benefit of financial assistance at these difficult times, which is why they are often referred to as living benefits.

Additional Income Protection Benefits

Other Benefits include rehabilitation assistance, relapse benefit, partial benefit, home-visits with independent qualified nurses or professionals, return to work support, and career change guidance.

Income Protection will help to relieve the financial burden while you get your life back on track. Get cover today - contact us in Dublin on 01-6853818 or Mullingar on 044-9348531 or online at http://lowcostlifecover.ie/income-protection-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

It is a time bomb that has yet to detonate, but all the evidence seems to suggest that it’s a case of when, not if, it will go off.

The problem facing countries all around the world is how will they continue to pay for pension benefits at a time when the population is living longer than ever before. And if they can’t, will someone joining the workforce today have to wait until they are 75 before they can retire?

Longevity is the key issue. Department of Social Protection figures suggest that the number of people in Ireland aged 65 and over will increase from 570,000 in 2013 to 855,000 in 2026. By 2055, just two people will be working to support every pensioner, down from about five today.

Given that one in every two workers in the private sector doesn’t have private pension coverage, the importance of the State pension is clear – and cutting it may have a huge societal impact.

“I don’t think it’s fair on the next generation,” says Michael Culligan, a principal with actuarial firm Milliman, who was commissioned by the Society of Actuaries in Ireland and Publicpolicy.ie to assess the financial sustainability of the State pension last year. (To see the full report, ).

One issue with the way Ireland’s State pension scheme is constructed is that it operates on a pay-as-you-go model. This means that PRSI contributions made by those working today go towards paying State pensions for those who have already retired. However, as the population ages, the balance, or ratio, of those who are working and paying for those are retired is set to change dramatically.

Ireland is not alone in its current approach. Many other European countries set aside almost nothing, funding benefits instead out of tax revenues as they come in. But the cost of servicing the State pension is set to rocket, jumping from 5.6 per cent of GDP in 2015 to 7.9 per cent in 2045 and 8.9 per cent by 2065, according to Culligan’s figures. And the shortfall between PRSI contributions and the amount being paid out is expected to widen from 2.6 per cent at present to 4.9 per cent by 2045 and 5.9 per cent by 2065.

“When you look at these numbers, something’s got to give,” says Culligan. “You have a situation where you have projected costs increasing very substantially.”

And there are no easy solutions, he adds. “You can cut pensions or you have to increase contributions. There’s no other way around it”.

It’s also a challenge for individuals.

“They must decide, if they are currently relying on the State pension [to fund their future retirement], do they expect that it will be payable when they retire, or if it will be at a level which is sufficient to provide them with a realistic lifestyle in retirement,” says Aisling Kelly, senior associate with Mercer Ireland.

There have been efforts to address this shortfall. In 2001, then minister for finance Charlie McCreevy established the National Pension Reserve Fund to build up a war chest to deal with the future pension funding issue.

The financial crash, of course, meant the fund was later raided to recapitalise the banks. And while there have been some calls of late to reinstate it, it is not clear where the money to fund it would come from.

A Universal Retirement Savings Group is also working on a review of the issues involved, but discussion of a looming pensions crisis was noticeably absent from recent election manifestos.

Putting it on the long finger may no longer be an option.

From 2017, under new EU rules, the Irish government will be obliged to calculate the total amount they must pay current and future pensioners. This will put the pension time bomb firmly on the agenda, but what will happen is not yet clear.

“It’s ultimately a political/societal choice: if society feels it wants to maintain the State pension, or increase it, that means we need to increase contributions,” says Culligan, adding: “On the other hand, if society can’t afford it, then we should go in a different direction.”

So if it is unsustainable, what measures might future governments take to defray the costs and put the benefit on a more secure footing?

Option One: Cut the value of the pension

The State pension currently pays out a top rate of €233.30 a week, thanks to the €3 increase last year. Qualified adults may get a further €209 a week, while those on a non-contributory pension get up to €222 a week.

By cutting how much it pays pensioners each week, the government could, in one fell swoop, significantly reduce the burden of the State pension.

A report from the Department of Public Expenditure and Reform in 2014, for example, said that cutting the rate must be considered as an option to ensure the sustainability of the State pension. A €1 reduction in the weekly contributory and non-contributory rates, for example, could generate savings of €19.7 million. If this cut was applied on a pro-rata basis to the qualified adult payment, a further €3.1 million in savings could be achieved.

Another suggestion put forward by the department was to scrap the €10 a week top-up pension payment for the over-80s.

Politically, however, Culligan says that such a move would likely be “very difficult”.

Option Two: Increase the retirement age

It’s already been done, but that doesn’t mean it can’t be done again. It’s possible, in theory, to keep on increasing the age at which people qualify for the State pension.

Since 2014, the qualifying age for the pension has risen to 66. That will rise to 67 by 2021 and 68 by 2028 under current plans. But it could rise again. After all, delaying the age at which people qualify for the State pension – and thereby reducing how much they’re entitled to over their lifetime – could offer some relief to the exchequer. Moreover, the higher the number of people working, the higher the number of those who are making PRSI contributions.

Over in the UK, the government has just launched a radical review of the pensions regime to assess whether or not their system is sustainable and affordable for future generations.

The UK already expects to link its pension age to general life expectancy after 2028. The Office for Budget Responsibility, the financial watchdog, has forecast that the pension age will have to rise to 69 by the late 2040s before increasing again to 70 by the early 2060s.

For Culligan, it’s “the most credible approach”, provided that life expectancy continues to rise. Today, a 65-year-old male is expected to live until he is 81.3 years, and a female until she is 84.8 years. Fast-forward 30 years, however, and by 2045 life expectancy may have increased to 86 years for a man and 88.9 years for a woman. Push out the dial to 2065 and a man may be expected to live until 88.6 years and a woman until 91.4 years.

As such, Culligan suggests in his report that the pensionable age should increase again to 69 years by 2038 and by one year every 10 years thereafter. In practice, this would mean that the State pension age would have risen to 70 years by 2055, and to 71 years by 2065. So, anyone born after 1969 wouldn’t be entitled to a pension until they were at least 69, while those born after 1994 wouldn’t get their pension until they were 71.

While it might reduce the period of pension payments for the State, and therefore ease the burden, this won’t offer a solution of itself. As Culligan notes in the report, “using this lever in isolation would not put the State pensions system on a sustainable footing”.

Moreover, increasing the pension age can be a bit of a “distraction” from the real issues at hand. After all, people retiring at 65 now have to wait until they are 66 before they can claim the State pension – but they are entitled to jobseeker’s benefit, albeit at a lower rate of €188 a week. This means that there is still a cost to the exchequer, whether people in this category are getting the pension or not.

While employers have been loath so far to increase their own pension age to match the new State pension age of 66, Kelly says that new legislation will make it more difficult to prevent employees from working longer.

“It will become an area under increasing pressure,” she says. “Employees will want to work beyond age 65 or their contractual age, and employers will be grappling with that.”

Another option, suggested by the OECD, in its review of the Irish pension system in 2014, is that “increments and decrements of the State pension could be introduced for late and early retirement”. This means that the later you retire, the more you would be entitled to get in your weekly pension.

Option Three: Cut eligibility for the pension

If fewer people qualify for the State pension, and fewer people are entitled to get it, the cost of servicing it will drop significantly. Already eligibility has tightened. People are now required to have 520 full-rate social insurance contributions, up from just 260 prior to April 2012. The actual pension paid is then determined by the annual average number of contributions since you first joined the system. An average of 48 a year will give you the maximum weekly pension payment, while you will need a minimum of 10 a year to get the minimum contributory State pension of €93.20 a week, with an additional €61.80 for a qualifying adult dependant.

This could introduce the possibility of means-testing the payment, or simply introducing an arbitrary threshold, such as €100,000, and deciding that no one earning more than that should be entitled to the State pension. However, this would cut the link between social insurance contributions and benefits for higher earners, which could lead to considerable resistance.

If that was to be introduced, it would have an impact on about 5 per cent of the population, according to statistics from the Revenue Commissioners. However, according to figures prepared by Culligan, it would deliver only a “slight reduction” in the cost of the pension to the exchequer, with the cost of pension provision as a percentage of GDP dropping to 6.5 per cent, from 6.8 per cent, by 2035 under tighter eligibility rules.

Another option would be to allow certain types of workers, such as manual workers, to retire earlier than those who are office-based.

If auto-enrolment – whereby employees have to opt out, rather than opt in, to a private occupational pension scheme, and employers are obliged to contribute – was to be introduced in Ireland, this could also be factored into how much someone gets in their State pension.

Option Four: Increase PRSI contribution rates

This is perhaps the simplest solution, and the one that will keep benefits as they are. But increasing taxes is always a contentious move.

At present, employees and the self-employed currently pay PRSI at a rate of 4 per cent, with employers paying a further 10.75 per cent. However, while the system might just about work now, with fewer and fewer people working and paying PRSI to support those in retirement in future, it won’t be enough to cover the level of benefits the State pension offers.

As Kelly points out, there are currently five employees working for every person in retirement; fast-forward to 2055, however, and that ratio drops to just 2:1.

To fill this contribution gap, Culligan suggests that the State could increase the level of PRSI people pay. However, to make a real difference, it would need to increase by 20 per cent over the next couple of decades, and by about 25 per cent thereafter.

This would mean that people paying PRSI at a rate of 4 per cent now would need to be paying 6 per cent, while their employers would need to pay more too, up from 10.75 per cent to 15.6 per cent.

Option Five: Change pension indexation

The stated goal in delivering pensions in Ireland is to maintain the minimum value of the pension at about 35 per cent of economy-wide average earnings. In 2011, this stood at about 36.5 per cent, up from about 30.5 per cent in 2002.

This is done by indexing the State pension with the rate of inflation in earnings, so that, as earnings rise, the State pension must rise too. But this is expensive. A better alternative could be to link the pension with price inflation. Doing so would bring down the percentage of GDP that the pension burden would account for, to 5.2 per cent by 2025, down from 6.2 per cent otherwise, and to 4.9 per cent, down from 7.9 per cent, by 2045, according to Culligan’s report.

Opting for an average of the two would reduce the benefit to the exchequer but could still be helpful, as could delaying the switch to price inflation until 2040.

There has been some move along this path already, with public sector pensions already linked to price inflation.

However, changing indexation would ultimately result in a decrease in income for those on the State pension, and would reduce that 35 per cent ratio to the average earnings for which the government is aiming.

Source: http://www.irishtimes.com/business/personal-finance/how-safe-is-your-state-pension-five-ways-the-benefit-may-be-cut-1.2597941

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

It is a time bomb that has yet to detonate, but all the evidence seems to suggest that it’s a case of when, not if, it will go off.

The problem facing countries all around the world is how will they continue to pay for pension benefits at a time when the population is living longer than ever before. And if they can’t, will someone joining the workforce today have to wait until they are 75 before they can retire?

Longevity is the key issue. Department of Social Protection figures suggest that the number of people in Ireland aged 65 and over will increase from 570,000 in 2013 to 855,000 in 2026. By 2055, just two people will be working to support every pensioner, down from about five today.

Given that one in every two workers in the private sector doesn’t have private pension coverage, the importance of the State pension is clear – and cutting it may have a huge societal impact.

“I don’t think it’s fair on the next generation,” says Michael Culligan, a principal with actuarial firm Milliman, who was commissioned by the Society of Actuaries in Ireland and Publicpolicy.ie to assess the financial sustainability of the State pension last year. (To see the full report, ).

One issue with the way Ireland’s State pension scheme is constructed is that it operates on a pay-as-you-go model. This means that PRSI contributions made by those working today go towards paying State pensions for those who have already retired. However, as the population ages, the balance, or ratio, of those who are working and paying for those are retired is set to change dramatically.

Ireland is not alone in its current approach. Many other European countries set aside almost nothing, funding benefits instead out of tax revenues as they come in. But the cost of servicing the State pension is set to rocket, jumping from 5.6 per cent of GDP in 2015 to 7.9 per cent in 2045 and 8.9 per cent by 2065, according to Culligan’s figures. And the shortfall between PRSI contributions and the amount being paid out is expected to widen from 2.6 per cent at present to 4.9 per cent by 2045 and 5.9 per cent by 2065.

“When you look at these numbers, something’s got to give,” says Culligan. “You have a situation where you have projected costs increasing very substantially.”

And there are no easy solutions, he adds. “You can cut pensions or you have to increase contributions. There’s no other way around it”.

It’s also a challenge for individuals.

“They must decide, if they are currently relying on the State pension [to fund their future retirement], do they expect that it will be payable when they retire, or if it will be at a level which is sufficient to provide them with a realistic lifestyle in retirement,” says Aisling Kelly, senior associate with Mercer Ireland.

There have been efforts to address this shortfall. In 2001, then minister for finance Charlie McCreevy established the National Pension Reserve Fund to build up a war chest to deal with the future pension funding issue.

The financial crash, of course, meant the fund was later raided to recapitalise the banks. And while there have been some calls of late to reinstate it, it is not clear where the money to fund it would come from.

A Universal Retirement Savings Group is also working on a review of the issues involved, but discussion of a looming pensions crisis was noticeably absent from recent election manifestos.

Putting it on the long finger may no longer be an option.

From 2017, under new EU rules, the Irish government will be obliged to calculate the total amount they must pay current and future pensioners. This will put the pension time bomb firmly on the agenda, but what will happen is not yet clear.

“It’s ultimately a political/societal choice: if society feels it wants to maintain the State pension, or increase it, that means we need to increase contributions,” says Culligan, adding: “On the other hand, if society can’t afford it, then we should go in a different direction.”

So if it is unsustainable, what measures might future governments take to defray the costs and put the benefit on a more secure footing?

Option One: Cut the value of the pension

The State pension currently pays out a top rate of €233.30 a week, thanks to the €3 increase last year. Qualified adults may get a further €209 a week, while those on a non-contributory pension get up to €222 a week.

By cutting how much it pays pensioners each week, the government could, in one fell swoop, significantly reduce the burden of the State pension.

A report from the Department of Public Expenditure and Reform in 2014, for example, said that cutting the rate must be considered as an option to ensure the sustainability of the State pension. A €1 reduction in the weekly contributory and non-contributory rates, for example, could generate savings of €19.7 million. If this cut was applied on a pro-rata basis to the qualified adult payment, a further €3.1 million in savings could be achieved.

Another suggestion put forward by the department was to scrap the €10 a week top-up pension payment for the over-80s.

Politically, however, Culligan says that such a move would likely be “very difficult”.

Option Two: Increase the retirement age

It’s already been done, but that doesn’t mean it can’t be done again. It’s possible, in theory, to keep on increasing the age at which people qualify for the State pension.

Since 2014, the qualifying age for the pension has risen to 66. That will rise to 67 by 2021 and 68 by 2028 under current plans. But it could rise again. After all, delaying the age at which people qualify for the State pension – and thereby reducing how much they’re entitled to over their lifetime – could offer some relief to the exchequer. Moreover, the higher the number of people working, the higher the number of those who are making PRSI contributions.

Over in the UK, the government has just launched a radical review of the pensions regime to assess whether or not their system is sustainable and affordable for future generations.

The UK already expects to link its pension age to general life expectancy after 2028. The Office for Budget Responsibility, the financial watchdog, has forecast that the pension age will have to rise to 69 by the late 2040s before increasing again to 70 by the early 2060s.

For Culligan, it’s “the most credible approach”, provided that life expectancy continues to rise. Today, a 65-year-old male is expected to live until he is 81.3 years, and a female until she is 84.8 years. Fast-forward 30 years, however, and by 2045 life expectancy may have increased to 86 years for a man and 88.9 years for a woman. Push out the dial to 2065 and a man may be expected to live until 88.6 years and a woman until 91.4 years.

As such, Culligan suggests in his report that the pensionable age should increase again to 69 years by 2038 and by one year every 10 years thereafter. In practice, this would mean that the State pension age would have risen to 70 years by 2055, and to 71 years by 2065. So, anyone born after 1969 wouldn’t be entitled to a pension until they were at least 69, while those born after 1994 wouldn’t get their pension until they were 71.

While it might reduce the period of pension payments for the State, and therefore ease the burden, this won’t offer a solution of itself. As Culligan notes in the report, “using this lever in isolation would not put the State pensions system on a sustainable footing”.

Moreover, increasing the pension age can be a bit of a “distraction” from the real issues at hand. After all, people retiring at 65 now have to wait until they are 66 before they can claim the State pension – but they are entitled to jobseeker’s benefit, albeit at a lower rate of €188 a week. This means that there is still a cost to the exchequer, whether people in this category are getting the pension or not.

While employers have been loath so far to increase their own pension age to match the new State pension age of 66, Kelly says that new legislation will make it more difficult to prevent employees from working longer.

“It will become an area under increasing pressure,” she says. “Employees will want to work beyond age 65 or their contractual age, and employers will be grappling with that.”

Another option, suggested by the OECD, in its review of the Irish pension system in 2014, is that “increments and decrements of the State pension could be introduced for late and early retirement”. This means that the later you retire, the more you would be entitled to get in your weekly pension.

Option Three: Cut eligibility for the pension

If fewer people qualify for the State pension, and fewer people are entitled to get it, the cost of servicing it will drop significantly. Already eligibility has tightened. People are now required to have 520 full-rate social insurance contributions, up from just 260 prior to April 2012. The actual pension paid is then determined by the annual average number of contributions since you first joined the system. An average of 48 a year will give you the maximum weekly pension payment, while you will need a minimum of 10 a year to get the minimum contributory State pension of €93.20 a week, with an additional €61.80 for a qualifying adult dependant.

This could introduce the possibility of means-testing the payment, or simply introducing an arbitrary threshold, such as €100,000, and deciding that no one earning more than that should be entitled to the State pension. However, this would cut the link between social insurance contributions and benefits for higher earners, which could lead to considerable resistance.

If that was to be introduced, it would have an impact on about 5 per cent of the population, according to statistics from the Revenue Commissioners. However, according to figures prepared by Culligan, it would deliver only a “slight reduction” in the cost of the pension to the exchequer, with the cost of pension provision as a percentage of GDP dropping to 6.5 per cent, from 6.8 per cent, by 2035 under tighter eligibility rules.

Another option would be to allow certain types of workers, such as manual workers, to retire earlier than those who are office-based.

If auto-enrolment – whereby employees have to opt out, rather than opt in, to a private occupational pension scheme, and employers are obliged to contribute – was to be introduced in Ireland, this could also be factored into how much someone gets in their State pension.

Option Four: Increase PRSI contribution rates

This is perhaps the simplest solution, and the one that will keep benefits as they are. But increasing taxes is always a contentious move.

At present, employees and the self-employed currently pay PRSI at a rate of 4 per cent, with employers paying a further 10.75 per cent. However, while the system might just about work now, with fewer and fewer people working and paying PRSI to support those in retirement in future, it won’t be enough to cover the level of benefits the State pension offers.

As Kelly points out, there are currently five employees working for every person in retirement; fast-forward to 2055, however, and that ratio drops to just 2:1.

To fill this contribution gap, Culligan suggests that the State could increase the level of PRSI people pay. However, to make a real difference, it would need to increase by 20 per cent over the next couple of decades, and by about 25 per cent thereafter.

This would mean that people paying PRSI at a rate of 4 per cent now would need to be paying 6 per cent, while their employers would need to pay more too, up from 10.75 per cent to 15.6 per cent.

Option Five: Change pension indexation

The stated goal in delivering pensions in Ireland is to maintain the minimum value of the pension at about 35 per cent of economy-wide average earnings. In 2011, this stood at about 36.5 per cent, up from about 30.5 per cent in 2002.

This is done by indexing the State pension with the rate of inflation in earnings, so that, as earnings rise, the State pension must rise too. But this is expensive. A better alternative could be to link the pension with price inflation. Doing so would bring down the percentage of GDP that the pension burden would account for, to 5.2 per cent by 2025, down from 6.2 per cent otherwise, and to 4.9 per cent, down from 7.9 per cent, by 2045, according to Culligan’s report.

Opting for an average of the two would reduce the benefit to the exchequer but could still be helpful, as could delaying the switch to price inflation until 2040.

There has been some move along this path already, with public sector pensions already linked to price inflation.

However, changing indexation would ultimately result in a decrease in income for those on the State pension, and would reduce that 35 per cent ratio to the average earnings for which the government is aiming.

Source: http://www.irishtimes.com/business/personal-finance/how-safe-is-your-state-pension-five-ways-the-benefit-may-be-cut-1.2597941

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

If you are in your 20s or 30s, you may not spend much time thinking about life insurance, but – surprise – maybe you should. Read on to find out why now is the right time to investigate life insurance.

As a rule of thumb, if you have loved ones who depend on you financially, or who could be affected financially in one way or another if you were no longer here, you should consider getting a life insurance policy, even a small one.

• ·         Who can be a dependent? Virtually anyone: a spouse, significant other, child or children, other family members, or even loved ones who are not blood relatives.
• ·         The longer you wait, the higher the cost, because Life Insurance premiums are based on your age when you apply.
• ·         The longer you wait, the greater the chance of being turned down later for reasons of health, hobby or occupation.
• ·         If you plan to buy life insurance when you’re older, or fear that the monthly cost may be too high, remember that it’s OK to start small, to play safe and buy more coverage later.

Ask yourself these questions in the event that something suddenly happened to you:

• ·         How much money would my loved ones need to spend to cover my funeral costs?
• ·         Would my spouse or significant other have enough money to pay the rent or mortgage?
• ·         How much money would be needed to replace my share of household income?

·         Do I have a sizable amount of debt, such as credit card or student loans, that someone else would be responsible for paying?

Whole Life Insurance vs. Term Life

Generally, there are two basic kinds of life insurance – whole life and term life – either of which may make sense for you, depending your particular situation. Both have advantages.

Whole life policies provide coverage for up to a lifetime, as long as premiums are paid. Some people prefer whole life insurancebecause policies will pay out the sum insured when they die regardless of term.

Term life policies provide coverage for a fixed period of time (or term). Term Plans offers a term from 5 years up to 50 years. Some Millennials opt for term life insurance because premium rates are usually lower than for whole life coverage.

Want more information?

At Low Cost Life Cover.ie, we’re available online or by phone. Our knowledgeable Customer Service representatives will be pleased to answer your questions or help you determine which kind of policy makes the most sense for your needs. Call us today on 01-6853818 or our Mullingar office on 044-9348531

Irish banks are charging as much as €3,000 more for life cover than brokers are, according to a new survey.

The survey, by the life assurer Royal London, found that you could pay pay as much as 21pc more a month for life assurance if you buy it from a bank instead of a broker. This could add an extra €3,067 to the cost of a policy over 30 years.

Royal London checked the price of various life assurance policies sold by AIB, EBS Building Society, KBC Bank and Permanent TSB. It then compared those prices to the cost of similar policies sold by brokers.

Life insurance pays out a lump sum or regular income to your dependents should you die while the policy is in force. A 35-year-old non-smoker could pay €23.79 a month for a 30-year life insurance policy of €200,000 were he to buy it from a bank, according to the survey. However, a broker could charge €19.63 a month (about 21pc less) for a similar policy. The pricier monthly premium charged by the bank would add an extra €1,500 to the cost of the cover.

A couple taking out mortgage protection insurance (which repays your mortgage should you die before repaying it) to cover a 30-year mortgage of €500,000 could pay €55.65 a month were they to go through a bank, but €48 a month were they to use a broker - assuming neither partner smokes, according to the survey. Going with a bank instead of a broker could therefore cost this couple an extra €2,754 over the lifetime of their policy.

Were the same couple to buy a 30-year life insurance policy of €500,000, they could pay an extra €3,067 for their cover by using a bank instead of a broker. In this case, the survey found that a bank could charge as much as €81.57 monthly for cover; while a broker could charge €73.05 monthly.

The main reason banks often charge more for life insurance than brokers is because they are usually tied agents - so they can only offer you the products of one company, according to Joe Charles, a spokesman for Royal London. Most Irish banks are tied to Irish Life for life assurance, apart from Bank of Ireland, which is tied to New Ireland.

"Brokers can shop around," said Mr Charles. "They have access to multiple life companies' products and prices."

As a result, brokers will often know - and be in a position to offer you - some of the best deals and discounts on the market.

When asked to comment on the Royal London survey, AIB, EBS and KBC (which are tied to Irish Life) said their prices for life insurance were "competitive".

"Looking at price alone ignores the fact that protection plans across the market vary in terms of the quality and benefits," said a spokeswoman for AIB. "For example, Irish Life plans include additional benefits not included in all protection plans offered by competitors."

All the same, with savings of as much as €3,000 up for grabs, it could certainly cost you to blindly stick with your bank when buying life cover. By choosing a broker who offers you the choice of a wide range of life insurance products on the market (including those sold by the banks), you could save yourself about €100 a year - more if you're buying a number of products.

Choosing a bank over a broker when buying life cover isn't the only thing which could push up the cost of your insurance. Your habits - as well as any illnesses or medical conditions you have - also come into play.

What habits will cost me with life cover?

Smokers could pay as much as 50pc more for life cover than non-smokers "A non-smoker is generally someone who has not smoked any tobacco products in the past 12 months,".

Similarly, you could pay three times as much for life cover than a teetotaler would - if you have a history of heavy drinking. You could also struggle to get insured.

When you apply for life cover, your insurer will ask you how many units of alcohol you typically drink a week. "If your weekly consumption of alcohol is above certain limits, you may not be able to get cover,". "If you have suffered from alcohol dependence, you may not be able to get cover until a year has passed since you stopped drinking."

After that year, you may be able to get cover - but at three times the price charged to someone who does not have a history of alcoholism or heavy drinking. "This 300pc loading could decrease gradually over the years to 50pc as certainty of recovery becomes apparent,".

Adrenaline junkies will also pay more for life cover - because of the high risk of accidental death. So a fondness for boxing, diving, motor racing, mountaineering, parachuting, hang-gliding and pot holing could lead to a higher premium.

Another thing which could push up the cost of life insurance is your weight. Overweight people can pay more than twice the price for life cover as slim people do. Insurers look at your body mass index (BMI - your weight in kilos divided by your height in metres squared) when you apply for life insurance.

"Insurers would expect you to fall within a 'normal' BMI range,". "If you go beyond this, you could see your premium increase by between 75pc and 225pc. If you are underweight, but with no other underlying medical or mental condition, you can also pay around 50pc extra for cover, depending on by how much you are underweight."

You could struggle to get cover at all if seriously overweight.

What about illnesses and medical conditions?

There are a number of medical conditions that you might consider manageable, but which could still see you either paying over the odds for life cover - or having insurers turn you down. These include anxiety, asthma, Crohn's disease, coeliac disease, raised cholesterol, diabetes, depression, epilepsy, hypertension, and stomach and thyroid disorders.

People with diabetes often struggle to get life and mortgage protection cover - particularly if it is type 1 diabetes.

"There are many factors that insurers say they consider when looking at type 1 diabetes - not just the fact that the person has diabetes,".

"For example, the insurer claims that they consider the current age of the applicant, the number of years since the individual was diagnosed with type 1 diabetes, and how well he is controlling the condition.

"They would also claim they take into account factors like raised blood pressure, cholesterol, family history of cardiovascular disease - as well as whether the individual is a smoker or not. Obesity would also be an important factor."

If you have poorly managed type 1 diabetes and are at risk of falling seriously ill (because you are a heavy smoker perhaps or have a family history of heart disease), you will probably find it hard to get life cover. You could get insured if you manage your condition well - but at a price.

But even if you are healthy, sporty and have type 1 diabetes, your premium can be loaded by as much as 700pc - which can represent over 10pc of the purchase price of a house.

Insurers certainly have themselves well covered with life insurance.

Sunday Indo Business

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

http://www.independent.ie/business/personal-finance/are-you-paying-3000-too-much-for-insurance-31085012.html