Personal Protection

Many people have not considered the financial impact of an unexpected illness, injury or premature death within their family. The unfortunate reality is that Irish families are struck by these events every day and the impact financially can be significant and long lasting. Family /personal protection benefits are essential to put in place to safeguard you and your families existing lifestyle and to protect future earnings. The main purpose of financial protection is to make sure you or your family won’t suffer financially in the event of an accident, death or illness in your family

  • How would you cope financially if you were unable to work due to accident or ill health?
  • Would the expense of an illness affect the financial well-being of you and your family?
  • Would your death have a devastating effect on your family’s standard of living and future plans?
  • Will the state provide for your family if you are unable to work?
What would happen to a family if the main income earner or sole provider was to suddenly pass away? Life is unpredictable therefore prudent financial planning gives you the peace of mind of securing your family’s financial well-being. Life Assurance pays your family a lump sum amount or a monthly income in the event of your death. A Life Assurance policy offers genuine security when you need it most, and is the most cost-effective way to insure your life and protect your family.
Imagine the consequences of a major serious illness – like cancer, a heart attack or a severe stroke. The repercussions could result in a very negative personal, but also financial impact, for you and your family. It could also have major implications for your business partners. Serious illness insurance pays you a tax-free lump sum if you are diagnosed with one of a number of specific illnesses or disabilities; you are free to spend the lump sum however you like to maintain your standard of living or to help you and your family to cope financially during a difficult time. You can also add optional benefits to protect you and your family in the short term including a stay in hospital, an accident leaving you unable to work for more than two weeks, suffering a broken bone, undergoing one of a number of surgeries.
Your income is directly related to your ability to work. This in turn is dependent on your continued good health. If you are unable to work it may be difficult to afford medical treatment and pay for the day to day expenses we all take for granted The state illness benefit for an individual is €188* a week, if you are self employed, you are not entitled to any state benefit. Income protection provides a monthly benefit of potentially up to 75% of your existing income until age 65 should you be unable to work due to accident or ill health.** The main advantage is that this income is provided for as long as it takes you to get back on your feet. For the self employed or those who have no sick pay it gives great peace of mind that they will be able to maintain their lifestyle even in the event of such an illness. Your Income Protection Plan is a tax efficient way of protecting your income as the premiums qualify for tax relief.
* Department of Social Protection illness benefit as at 14 January 2014.
**This information is correct as at 10/07/2014. Source : http://www.consumerhelp.ie/income-protection#income
Buying a home is the biggest financial commitment most people will ever make, so ensuring the right cover is in place to protect it should be a top priority. The purpose of a Mortgage Protection policy is to pay off the outstanding balance of your mortgage in the event you die prematurely. Mortgage Protection Policies offer you a range of benefits including the option to take out serious illness cover as part of your policy.
Many people plan to leave inheritances to their children and relatives when they die. With the increases in Capital acquisition taxes over the last number of years and the reduction in the gift thresholds there is a growing need for inheritance tax planning to ensure wealth gets passed to the next generation in the most tax efficient way .CAT is applied both to gifts and to inheritances at the rate of 33% (2014). A certain amount can be gifted or bequeathed tax free, depending on which ‘group’ the recipient falls into, as follows:

CAT

Source: http://www.revenue.ie/en/tax/cat/thresholds.html (July, 2014)

We can provide you with independent advice* helping you to put plans in place to ensure the tax efficient transfer of your assets during or after your lifetime

*Our fee schedule can be found in our Terms of Business Letter. Click here to view.


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