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.”

€51,000 deposit puts homes beyond the reach of workers

Stark new figures from the banks show the value of the average deposit has risen by 38pc in a year from €38,000 to an average of €51,000 for Dublin buyers, figures uncovered by the Irish Independent show.

The banking data shows a deposit of €20,000 being used outside of Dublin by the end of 2015, up from €16,000 in 2014.

In Galway, the average deposit is now €27,000, up from €21,000. And in Cork, it is €32,000, up from €24,000.Experts said this meant that qualifying for a mortgage was now beyond ordinary workers.

The figures were provided to mortgage brokers and estate agents by the Banking and Payments Federation in a presentation last Monday, but were left out of a publication given to the media on the same day.

The scale of the deposit used to secure a mortgage comes as a new survey shows that seven-out-of-10 people believe Central Bank rules on home-loan deposits should be changed or scrapped.

Central Bank lending restrictions that were introduced a year ago mean that to qualify for a mortgage, you have to have a deposit of 20pc of the property's value.

First-time buyers can qualify with 10pc of the property values for amounts borrowed up to €220,000, and 20pc for amounts over this.

A spokeswoman from the Irish Banking and Payments Federation (BPFI) confirmed that the figures were not issued to the media.

"I can confirm that this was not in the BPFI 'Housing Market Monitor' published on Monday. It was used as part of a presentation to stakeholders to offer more insight and context," she said.

There was no reply when she was asked if the figures on deposit sizes were kept from the media in case they would scare off potential mortgage applicants.

Figures earlier this week showed first-time buyers are being pushed out of the property market due to the lending limits.

Just over 1,000 want-to-be-buyers got approval for a mortgage in January.

Mortgage broker Karl Deeter said: "This is the price of protecting banks because for a person looking to buy a home, requiring another €20,000 means only two things: you stay a renter or you ask a preferably rich mum or dad for the money."

Most people feel the Central Bank lending rules should be eased, according to a survey commissioned by life insurer Royal London, and carried out on 1,000 adults here by iReach.

The survey results illustrated that general support exists for the Central Bank's lending rules, Joe Charles of Royal London said.

However, the majority of respondents feel that some fine tuning of the measures is needed, with 48pc suggesting that there should be some relaxation for first-time buyers.

Meanwhile, the housing crisis has worsened with news that the stock of homes for sale has reached its lowest level since records began in 2009.

There are just 26,773 properties for sale nationwide compared with January 2010, when there were twice as many homes on offer (54,121).

Irish Independent

http://www.independent.ie/business/personal-finance/51000-deposit-puts-homes-beyond-the-reach-of-workers-34516814.html

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

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 you do need long-term financial planning advice?

Now more than ever, people have a need for professional and impartial financial planning advice, as the majority of people do not make adequate provisions for their long-term financial needs. If you don’t agree with this sentiment have a read of the following statements.

1. Your family and dependents would have adequate income and be financially secure if you:

a. Died unexpectedly or;

b. Were diagnosed with a serious or life threatening illness resulting in prolonged medical treatment or;

c. Were unable to work for a prolonged period due to an injury, disability or mental condition.

2.  You and/or your employers are funding a pension plan and you are familiar with the key features and benefits.

Therefore  you:

a. Know whether it’s defined benefit – a final salary arrangement which will pay you a percentage of your final salary on retirement or a defined contribution arrangement where your pension is determined by the size of the fund at retirement;

b. You know what income your pension will provide in retirement based on what is being contributed and the growth in your fund over the period;

c. Are confident based on A+B that your standard of living will be maintained in retirement supplemented by a state benefits and other savings;

d. Know when you can retire and what options you have at retirement – how much you can take as a lump sum as opposed to how much you will receive as an income;

e. What your pension monies are invested in and why;

f. Are aware of the risks that your pension will not deliver your required level of income in retirement based on the investment strategy selected;

g. The tax relief available on your pension contributions and the tax treatment of your benefits on retirement

3.  You have a documented savings and investment plan to ensure you will have monies available for major life events and contingencies including:

a. Cost for children’s education;

b. Paying off a mortgage or loan;

c. Unexpected costs e.g. medical.

4. You have a comprehensive and up-to-date networth statement outlining all of your assets and liabilities and a personalised income statement and a plan for paying off any loans.

5. You cannot answer the above questions as you have a competent financial adviser who looks after your affairs.

 Viable plan

If your answer to the first four statements is an unequivocal yes, then it is very likely that you have a documented and viable long- term financial plan and the required products and services to meet your needs. Unless you are a financial adviser or someone with a high level of financial literacy and experience, then it is likely that this plan was prepared for you by an authorised financial adviser.

If your answer to the five statements is no then why is this the case? Our research and supporting anecdotal evidence highlights one important reason for this but not the most important. This is due to the impact of the protracted economic slowdown and austerity measures on most peoples’ income. When households are encountering financial pressure then financial planning requirements will be sacrificed to allow available income to be used to pay for day-to- day expenses. According to research undertaken by Friends First in 2013, 67% of households finances have experienced a reduction in income over the last 12 months, a rise of 15% over the previous years plus:

6.   A rise of 15% has seen their household income reduced over the past 12 months.

7.  63% of participants without a pension do not have one as they cannot afford it.

8.  20% of participant reduced pension contributions in the last 12 months.

9.   49% of these have stopped contributing altogether, a rise of almost 10% compared with the previous year.

10.  One in five were unable to meet all of their monthly financial commitments with mortgage commitments being the primary stress factor.

11. Almost half of participants without a pension would be encouraged to start one if they were automatically enrolled into a voluntary pension scheme.

 Informed decisions

If you do not have the income to pay for your financial planning needs then it is understandable that some of these will be sacrifice, but if you are an employee, there

are tax efficient ways for your employer to fund your pension and life cover and you should ensure that these option are fully explored with your financial adviser and employer.

However, the economic slowdown is not the main reason consumers have been reluctant to financially plan for the future, as before the economic slowdown government research from 2008 highlighted that less than 50% of  people had a private pension and this number included state employees, so when they are excluded, the number of uncovered private sector workers without a pension was over 60%. This is due to a factor we know as ‘short-termism’ where people spend money today (earned or borrowed) and fail to sacrifice short-term spending so they can divert income into saving for the long-term and in providing for contingencies. The outcome from failing to plan can be economic hardship for you and your dependents when you need income security most.

 Solution

This is why it is imperative that you engage with a professional adviser or broker who can provide you with a comprehensive overview of your financial planning. Even if you can’t afford to act on his/her recommendations, you are at least armed with the knowledge as to what you should do, when your income increases and your economic circumstances improve. The key objective in financial planning, as in many aspects of one’s life, is to make informed choices and ensure we have access to the best and most up-to-date information. If you do not have a financial plan, talk to a financial adviser today.

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

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Newly engaged couples spend a lot of time dreaming about the future — how many kids they'll have, what kind of house they'll live in, the exotic places they'll explore together. What they don't spend much time talking about is how they'll pay for it all.

But according to several studies, not talking about finances before saying "I do" is the single biggest mistake a couple can make.

"Money is the number one source of tension in relationships," says Monica Mazzei, a family law attorney at Sideman & Bancroft. Unsurprisingly, a 2012 longitudinal study found it's also the top predictor of divorce, since financial stress and fundamental differences in values tend to put a strain on the marriage. 

Despite the importance of hashing out money issues early, only38% of couples say they plan together for retirement. "We're not taught how to talk about money with other people," Mazzei says. "But it drives a lot of major life decisions."

If you're considering tying the knot, the most important thing you can do to increase your chances of having a long and happy marriage is to have a frank, open discussion about money. Here's a guide to the crucial conversations every couple should have.

What's your money philosophy?

Before there's any talk of joint bank accounts or wedding venues, the first thing couples should do is sit down and describe their upbringing. Start talking about your backgrounds, where you're coming from. Try to get a sense of how the other person approaches money. What are their attitudes toward money? What are yours? What did your parents teach you about spending, saving, philanthropy? 

For many people this is the first time they've thought about their own money habits, let alone tried to align them with someone else's. It's bound to be uncomfortable to start, but once you're married you're going to be in some uncomfortable situations. If you never had that conversation from the beginning, you're fighting two battles: you're fighting the financial battle and you're fighting the emotional one trying to salvage that particular part of the relationship.

To make sure you and your partner are on the same page we recommend tackling three key topics:

1. Financial priorities: Just because you may now have two incomes doesn't mean you can afford everything you want. There are some needs and wants that are more equal than others. Whether it's paying for frequent holidays or owning nice cars, your values won't always match up. Draft independent lists of your wants and needs so you can spot potential conflicts before they arise.

2. Life goals: Does one partner plan on staying home with the kids for a period of time? Is there debt that needs to be paid off? What are you hoping to accomplish in the short term, and where do you want to end up 20 years from now? You may not have a clear timeline sketched out in your head, but the earlier you start talking about your ideas for the future, the more likely you are to achieve what you want.

3. Retirement plans: When people go from one-income families to two-income families, the temptation is there to start doing some of the things you've always wanted to do or...[rationalize] changing your savings regimen. This is absolutely not the time to do it. Instead, couples should think carefully about when and where they want to retire, and how much they want to have saved up by then. That way, every decision is made with that end goal in mind.

In some cases, just the process of asking these questions can cause couples to rethink their engagement. You might realise you didn't see eye-to-eye. It's better to know early than embark on a marriage that's doomed from the start.

What are your assets?

Once you've talked about the big picture, it's time to lay out the facts — all of them. Couples need to be totally transparent about their financial situation. Whether you've got student loans, child support payments, or a trust fund you never told your partner about, it's time to come completely clean and make sure your partner knows exactly what's in your name in case something happens to you.

Here are some essential issues that should be covered:

1. Saving accounts: By the time they get married, individuals often have one or two old savings accounts, and other accounts created for them by their parents. Sit down with a financial advisor who can go through all of the accounts in your name and determine what needs to happen with them, and make sure your partner has a clear understanding of them in case something happens to you.

2. Beneficiaries:  Now that you're coming together as a couple you're going to need to think about the beneficiaries of your savings our life insurance.

3. Debt: In the short term understanding what the debt situation is helps determine what a family unit can afford to spend. Student loans, car loans, credit card bills, etc. can add up quickly. It's also important to understand what happens to an individual's debt after they die, a process that varies by the type of debt in question, the state in which they reside, and the name on the loan. Once you've spoken with a financial advisor and identified your individual assets, write everything down and keep it in a place where your partner can find it. Include login information, phone numbers, and anything else they would need to access those assets.

Should we get a prenup?

The prenup conversation is almost never a fun one. For young couples without children and few assets entering their first marriage, we very seldom recommend getting one. However, when there are significant assets at stake from one or both partners, or if there are children from previous relationships, having a layer of protection is not a bad idea.

In situations where one partner is much wealthier than the other, or when there are special needs in the family couples should at least have the conversation even if they decide not to go through with it.  

The Bottom Line

We see the most successful situations where people from the very beginning start having those conversations. The earlier that you can talk about this stuff, the better. Talk while everybody's healthy. Have these conversations while you're still renting or trying to buy a house. Have these conversations without the kids, before you have all this other stuff.

Start by laying out your personal philosophies toward money and what you envision for your future together. Then sit down with a financial advisor who can itemise your assets and make recommendations about who else you should consult. 

If you take the time to have honest financial conversations early, you will set yourself up for a long, healthy marriage to come.

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

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