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Planning for the future

  • 05-03-2012 01:53PM
    #1
    reilig
    Closed Accounts Posts: 7,401 ✭✭✭


    Some sad news delivered to a good friend recently got myself and the OH talking about the future. While we are quite young still, you just never know what you'll have to face just around the corner. Certainly for my friend, one day he was working in a high profile job with a massive salary, and the next he was facing a life threatening illness, immediate surgery, and not knowing if he will ever be able to go back to work again - certainly never to take back on the role that he held.

    Our first step is to do a will. Have many people here got one done? Is it an expensive exercise? What planning/decisions do we need to make before meeting the solicitor?

    Have you got any other insurance/assurance?
    We have an insurance policy as part of our mortgage and decided to choose a more expensive opition than the norm which increases the amount (slightly) insured annualy as opposed to one which reduces with the amount of money that you owe on the mortgage. (eg. Original value was €200k, and it rises by about €3k each year).

    We recently went against the trend and slightly upgraded our health insurance this year. My OH was unwell last year after having our child and we felt that we got a lot of value from it.

    My OH has recently taken out a long term illness policy on her salary which covers her wages for a certain period of time if she was ill. Its not cheap, so I'm not sure if it would be worth my while having it? Has anyone got it? Do you recommend any particular policy??

    Has anyone got any other type of cover that might interest me or other readers?


Comments

  • #2
    Tora Bora
    Closed Accounts Posts: 1,258 ✭✭✭Tora Bora


    reilig wrote: »
    My OH has recently taken out a long term illness policy on her salary which covers her wages for a certain period of time if she was ill. Its not cheap, so I'm not sure if it would be worth my while having it? Has anyone got it? Do you recommend any particular policy??

    Has anyone got any other type of cover that might interest me or other readers?

    For the type of cover mentioned above, by far and away the best kind, are Permanent Health Insurance policies. PHI for short.
    They are designed to provide a percentage of your normal income in th event that you cannot work. Usually there is a period of either three or six months in the beginning of such an illness where you cannot claim.
    The beauty of these policies (PHI), is that you can claim full tax relief against the premium at your marginal tax rate. Helps a lot to fund it if you are on the top tax rate.

    I have a policy costing me €89 per month gross. After tax relief that costs just over €46 per month, or €10.68 per week over 52 weeks.
    I'm covered for income of €775 per week indexed linked for that amount. Of course the premium is also indexed linked.
    I chose 6 months at the beginning of any potential long term illness as the period for which I wouldn't be allowed to claim.
    As far as I know and I may be wrong on this, the major povidor of this kind of policy in Ireland is Friends First http://www.friendsfirst.ie/income-protection-faq/


  • #3
    reilig
    Closed Accounts Posts: 7,401 ✭✭✭reilig


    That's useful stuff Tora Bora.

    Do you know how many years they would pay out for in the event of you getting sick? My OH's is the same cost and they will pay for a maximum of 3 years.

    Tora Bora wrote: »
    For the type of cover mentioned above, by far and away the best kind, are Permanent Health Insurance policies. PHI for short.
    They are designed to provide a percentage of your normal income in th event that you cannot work. Usually there is a period of either three or six months in the beginning of such an illness where you cannot claim.
    The beauty of these policies (PHI), is that you can claim full tax relief against the premium at your marginal tax rate. Helps a lot to fund it if you are on the top tax rate.

    I have a policy costing me €89 per month gross. After tax relief that costs just over €46 per month, or €10.68 per week over 52 weeks.
    I'm covered for income of €775 per week indexed linked for that amount. Of course the premium is also indexed linked.
    I chose 6 months at the beginning of any potential long term illness as the period for which I wouldn't be allowed to claim.
    As far as I know and I may be wrong on this, the major povidor of this kind of policy in Ireland is Friends First http://www.friendsfirst.ie/income-protection-faq/


  • #4
    Tora Bora
    Closed Accounts Posts: 1,258 ✭✭✭Tora Bora


    reilig wrote: »
    That's useful stuff Tora Bora.

    Do you know how many years they would pay out for in the event of you getting sick? My OH's is the same cost and they will pay for a maximum of 3 years.


    Right up to normal retirement date, in the event that God forbid, your OH, were to be unable to work for that long a period.
    That is why I believe this kind of policy, is by far and away the most cost effective on the market. Tax relief on premiums, and open ended pay out period in the event that such a claim might be required.

    TB


  • #5
    Tipp Man
    Closed Accounts Posts: 4,023 ✭✭✭Tipp Man


    reilig wrote: »
    Some sad news delivered to a good friend recently got myself and the OH talking about the future. While we are quite young still, you just never know what you'll have to face just around the corner. Certainly for my friend, one day he was working in a high profile job with a massive salary, and the next he was facing a life threatening illness, immediate surgery, and not knowing if he will ever be able to go back to work again - certainly never to take back on the role that he held.

    Our first step is to do a will. Have many people here got one done? Is it an expensive exercise? What planning/decisions do we need to make before meeting the solicitor?

    Have you got any other insurance/assurance?
    We have an insurance policy as part of our mortgage and decided to choose a more expensive opition than the norm which increases the amount (slightly) insured annualy as opposed to one which reduces with the amount of money that you owe on the mortgage. (eg. Original value was €200k, and it rises by about €3k each year).

    We recently went against the trend and slightly upgraded our health insurance this year. My OH was unwell last year after having our child and we felt that we got a lot of value from it.

    My OH has recently taken out a long term illness policy on her salary which covers her wages for a certain period of time if she was ill. Its not cheap, so I'm not sure if it would be worth my while having it? Has anyone got it? Do you recommend any particular policy??

    Has anyone got any other type of cover that might interest me or other readers?

    How on earth did you get a mortgage without doing a will??

    Everybody should have a will no matter how young or old - and especially anybody with any assets


  • #6
    Tora Bora
    Closed Accounts Posts: 1,258 ✭✭✭Tora Bora


    Tipp Man wrote: »
    How on earth did you get a mortgage without doing a will??

    Everybody should have a will no matter how young or old - and especially anybody with any assets

    Absolutely no requirement for a will to be made in order to get a morgtage. Why would there be? How would the security of the loan be improved upon from the bank's point of view?


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  • #7
    reilig
    Closed Accounts Posts: 7,401 ✭✭✭reilig


    Tipp Man wrote: »
    How on earth did you get a mortgage without doing a will??

    Everybody should have a will no matter how young or old - and especially anybody with any assets

    Never heard of anyone having to have a will done in order to get a mortgage?


  • #8
    pakalasa
    Closed Accounts Posts: 4,552 ✭✭✭pakalasa


    Just be careful if you do decide to change your Health Insurance. I know of someone who changed theirs, to cover an extra family member, only to find out that they weren't covered to pay for an operation. In the previous insurance, they were covered. Some shock to get.


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