Protecting Your Family

16 June 2022

As a Financial Advisor I always understood the importance of Life and Serious Illness Cover, however, since becoming a Mammy I am even more aware of the need for parents to protect themselves, their families and their homes against the potential financial hardship that can arise because of an illness or death within the family.

Work, school, and family life can be so busy that some of us might not take enough time to think about the benefits provided by family protection policies. It is prudent that we spend a little more time considering our options to ensure our and our children’s current standard of living can continue should an illness or death strike. Ask yourself a few simple questions:

  • What level of income would be missing?
  • What outgoings might need to stop?
  • What outgoings would continue?
  • What income would the family qualify for on the death of a spouse e.g., Widow’s/ Widower’s Pension?
  • Are there any life events or ad hoc payments that need to be provided for? e.g., birthdays, Christmas, weddings, children’s education, etc.

Protecting your family with Life and/or Serious Illness Cover is one of the most important financial decisions you will make in your lifetime. It means a lump sum or income is available to your family if you are diagnosed with a serious illness or die before your children become financially independent.

The cost of providing family protection is often a fear and can be seen as a barrier to many parents; however, protecting your family may be more affordable than you think. Regardless of how much Life Cover you require; the key factor is how much you can afford. It is important not to take out a level of Life Cover that you will struggle to pay each month. Life Cover should give you peace of mind, not be a source of worry. The minimum premium available on the market is €10 per month and if affordability is an issue, it is always better to have some cover in place than none at all. Life and Serious Illness Cover premiums are quoted depending on:

  • Age
  • Amount of cover
  • Term of cover
  • Type of cover
  • Health and whether you are a smoker or not
  • Your occupation (applies in certain cases)

Another challenge facing parents today is that they may not have regularly reviewed any existing policies, to ensure the level of cover is still adequate or even necessary, based on their current situation. Many of the Life Companies offer flexibility in that they allow changes within existing contracts in circumstances such as marriage, having a baby, taking out a new or additional mortgage or securing a salary increase. However, the terms and conditions vary between policies and Providers; therefore, it is important to get independent, professional advice when it comes to something as important as protecting your children.

Lisa Doherty, BBS QFA RPA SIA is a Qualified Financial Advisor, Retirement Planning Advisor & Specialist Investment Advisor. You can contact her through John F. Loughrey Financial Services by telephone on 074-9124002 or by email on lisad@jfl.ie

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