5 Things You Need To Watch Out For When Getting Mortgage Protection

If you’re looking into whether it would be a good idea to get mortgage protection insurance then knowing all the pros and cons of such a decision is the first, and most important step in doing so. While the recession may already have been officially declared over, the reality on the ground has forced many homeowners to seriously consider mortgage protection as a safeguard against redundancy or illness.

What is mortgage payment protection?

Mortgage protection guarantees cover for your mortgage payments in the event that you are unable to work due to redundancy, illness, or an accident. Mortgage protection is not compulsory, but some policies may require it, and it is one of the most popular options for mortgage cover in Ireland although there are also other options available.

5 Things You Need To Watch Out For When Getting Mortgage Protection

Property owners with a mortgage should seriously consider taking out protection on their payments. In these days of austerity it is even more important to be covered in case of any unforeseen periods of unemployment. To this end, here are five things you will need to watch out for when getting a mortgage protection policy:

Make Sure You Get the Best Deal

As most mortgage protection policies are taken up at the same time as the mortgage, most property owners will usually opt to simply use the one offered by their mortgage lender. However, since there is no obligation to take up a deal offered by any lender, shopping around is beneficial. Particular attention should also be paid to the excess period each policy has. This is the period of time you will have to wait before your mortgage lender can begin receiving their payments through your cover so choosing one that is comfortable for your finances is also crucial.

How selective are your chosen mortgage protection underwriters?

The more selective your chosen mortgage protection providers are, the more likely you are to get the best deals that offer the lowest premiums. These are worked out according to your age with policies getting more expensive the older you are and as in the first tip, independent providers are usually able to offer better deals than household names.

What does your mortgage protection policy cover?

An unplanned drop in your income will not only impact your mortgage repayments, it may also affect your livelihood. As one of the biggest investments most people are ever going to make, it makes sense to get mortgage cover, but so does investigating the available life insurance or income protection policies available to you if your finances are already stretched.

Understand Your Policy

If any aspects of your policy are particularly hard to understand then it is advisable to get advice and help from specialists in the industry to ensure your peace of mind and full mortgage cover.

Employment History

With conditions still difficult for borrowers, proof of steady employment is a positive factor. Being in a position for over at least six months (ideally more) will reassure lenders that you currently have a guaranteed and stable income which will improve your premium choices.

Conclusion

Mortgage protection should always be an important consideration for both new and existing property owners, as getting a policy not only provides peace of mind, it also provides actual cover in the event of any unplanned disruptions to your livelihood.

The Benefits of Taking Out Income Insurance Protection and What Does It Cover

With most people still feeling the effects of the recession, one area that has now become a significant part of financial planning for those in employment is income insurance protection. Studies have shown that while most households have insurance cover for most common insurance policies such as mortgage or vehicle insurance, most do not have cover for their income in the event that they are unable to work for a period of time.

What is income insurance protection and what are its benefits?

Income insurance protection policies typically provide cover if for some reason you are unable to work and there are many benefits to taking out such a policy. Comprehensive income protection policies will generally provide cover for a percentage of your earnings in the event of accidents, sickness, and unemployment, while simpler plans may cover only one of these. Either way, the benefits of taking cover for your income include a guaranteed tax-free percentage of your salary, and the ability to choose the length of your protection to suit your financial situation.

Other benefits include monthly payments while you are unable to work, peace of mind, and financial security at a time when you are most vulnerable to falling behind your financial obligations and living costs.

What does income insurance protection cover?

Income insurance protection cover varies between policies depending on whether you choose short-term cover or long term. A short-term policy will typically provide cover for anything between six months and a year until you are ready to go back to work. Long term income protection insurance cover is designed to provide cover in the event of long term illness and can last until the age of retirement, or until the time you are able to return to employment.

Income insurance policies with lower premiums will have longer periods before they start paying out, so prospective policy holders have to strike a balance between how long their employer will continue to pay them while they are away, and the beginning of income insurance payments.

How much cover should I take out?

How much cover you will need depends on your financial circumstances. If your finances are already at starching point, or if you have dependants or are self-employed, income protection can be a good investment to help you keep up with your outgoings should you be unable to work for a period of time. However, while searching for the best cover, it may also be worth considering other avenues of ensuring financial stability such as having your own savings to complement your income insurance protection pay outs.

While income protection insurance will not cover redundancies unless specifically stated, getting cover in case you are unable to work and earn your regular salary makes good sense. With due care and research to ensure you know everything you are covered for as well as what you are not insured for, it is time income protection took on the same, if not more, importance as other common insurance types.

Why Your Business Needs Insurance Protection

For most companies, whether they are small to medium sized businesses or large corporations, insurance protection is a vital component of their operations and financial planning. Depending on your product or services, your business operations can be severely affected in the event of an accident, a natural disaster, the death of a senior figure, or other unforeseen circumstances.

Types of Business Insurance Protection

The complicated nature of business insurance can sometimes put off smaller businesses, but the law requires all businesses to have certain types of insurance. Below are some of the types of insurance a business may need to include in their cover, not only to meet legal requirements, but as a safety net to protect the company:

  • Business Protection Insurance

Although a lesser-known part of insuring a business, business protection insurance is nonetheless one that most companies should consider, especially small firms. This type of insurance provides cover to help your business continue trading should a company owner or other key member get seriously ill or pass away. Business protection insurance also covers crucial aspects of a business such as shareholders and loan protection.

  • Liability Insurance

Commonly referred to as ‘employers’ liability insurance, this type of cover is required by law if your business employs staff. Liability insurance provides cover should one of your employees get injured, suffer illness, or death and it is deemed to be a result of their work. Therefore, in addition to being a legal requirement, liability insurance also makes perfect business sense.

  • Public Liability

As above, your business activities may be carried out around members of the public or private property, so cover is advisable. While not legally required, public liability insurance is essential to provide cover for unforeseen incidents that may involve the public and is also a requirement from most public sector clients looking to do business with any company.

  • Vehicle Insurance

Just like we insure our private vehicles, businesses may also need to take out motor insurance that provides cover specifically for business use. The same applies even if employees use their own private cars and have their own insurance policies. If any vehicles are used for business work – no matter how minimal it is – then it is the company’s responsibility to ensure the right cover is in place.

With the added cost that comes from insurance premiums, some business owners may look to forego taking out cover for their company, especially as the prospect of events such as natural disasters affecting them may seem highly unlikely. However, it’s important to remember that any number of factors can come into play in affecting your trade, profitability, and continuation. For example, the impact that fire damage, burglary, or flooding can have on operations can end up being very costly, not to mention being a time consuming inconvenience.

Businesses, both large and small, should therefore get advice on the type of insurance required to provide adequate cover to ensure business continuity and security. In conclusion, your business needs insurance protection not only as a means to get financial cover in the event of any unplanned events, but getting adequate cover is also a great way to enforce continuity planning in the organisation that ensures the company’s stability and longevity.

Common Life Insurance Mistakes & How To Avoid Them

 

When it comes to investing in home or car insurance, it’s only natural that you’ll want to do the adequate research that’s involved to get the best company and the best quote. Taking out a life insurance policy should be no different. After all, it’s such a major long-term commitment that choosing the right company and policy is something that you must get right the first time, as making mistakes could have detrimental effects on the ones that you’re try to protect by taking out the policy.

As with most things that involve contracts and deliberation, it’s easy to make mistakes when taking out such a policy. We’re about to delve into this a little further by revealing five of the most common mistakes that people make when getting life insurance:

1.Choosing the wrong policy coverage

When it comes to choosing a life insurance policy, a lot of people underestimate the amount that they will need to properly cover themselves and their family. Consulting with a financial advisor is one of the first steps that you should take when deciding on which policy and how much coverage to take out as they will be able to help you calculate the amount of money that will be needed to help look after your dependents.

2.Forgetting to re-evaluate the policy regularly

A lot of people that have an insurance policy would have sat down with a financial planner and evaluated their insurance needs before signing the contract and although this is definitely necessary, it’s not enough. Just have a think about this for a moment – if you purchased a policy 15 or 20 years ago your benefits might be less than what you and your family require today. As a good practice, it’s always a smart idea to sit down every few months or at least yearly and reassess your policy from start to finish.

3.Choosing a policy based on the premiums alone

When it comes to taking out a life insurance policy for the first time don’t pay attention to the price alone. Be sure to look at the company’s strengths and benefits and ask around for reviews and recommendations both online and from people you know regarding the company services. When comparing the insurance policy that a company offers always be sure to compare apples to apples and evaluate similar policies with other companies. Regardless of which company you choose and policy you take out, it’s always important to read the fine print.

4.Taking out a policy at the wrong time

Your age is extremely important, as it will determine a lot of what your policy will cover. One of the biggest mistakes that people make when choosing their coverage is taking out a policy at the wrong time. For example, providers usually up a person’s age so if you are six months away from being 30 years old when taking out a policy, an insurance company will take that information and give you a price as if you were already 30. Again, this is why it is important to shop around and do your research when it comes to getting the best quote and policy for you.

5.Relying on third party policies

While it’s common nowadays for companies to take out insurance policies for their staff, it’s always best to have your own independent insurance policy. A lot of third parties insurance, which you are covered for from your employer or workplace, doesn’t often include the full amount of coverage that you would expect it to. A lot of these policies also leave you locked in meaning that you’ll be unable to re-evaluate and alter them at a later date. Some policies are also known to expire in the event that you leave that company.

Investing in life insurance and finding a suitable policy is not something that should be rushed, and make sure that you do not fall victim to the five mistakes that are outlined above.

 

Getting Life Insurance If You Have Asthma

 

Did you know that approximately 470,000 people in Ireland suffer from asthma? To put it into context, that’s more than 10% of the entire population! There are varying levels of asthma and depending on how it is managed, it is possible to live a normal life, despite suffering from the condition. However, when it comes down to calculating life insurance premiums, asthma is one of the biggest health problems that can impact a premium.

Some life insurance companies may refuse to offer a premium to someone who suffers from asthma but this is very rare, as most insurance companies will quote for life insurance for asthma sufferers. However, the difference in quotes from provider to provider can be phenomenal. The premium quoted by an insurance company will likely depend on the severity of your asthma – best case (childhood asthma), mild, moderate or severe.

Categories of Asthma

Life insurance companies tend to categorise asthma sufferers for insurance purposes as follows:

  • Best case: Only a past history of childhood asthma or only suffers asthma symptoms after exercising.
  • Mild asthma: Suffers only very minimal symptoms that are easily controlled on regular prescription medication. Does not require hospitalisation or need to take oral steroids.
  • Moderate: Experiences asthma symptoms quite regularly where oral steroids and/or hospital admission are needed.
  • Severe: Frequently suffering from asthma attacks requiring hospital admissions and almost on-going use of oral steroids.

Will I pay a bigger premium?

If between yourself and your doctor, you have your asthma well managed, it is unlikely that the potential price of your life insurance cover will be higher than a non-asthmatic sufferer. However, if you’re not keeping your asthma under control and regularly find yourself in the hospital with respiratory issues and requiring heavy prescription medication, life insurance companies will see you as “high risk” and your premium will likely be higher.

Those considered as “best case” or “mild” asthma sufferers should really pay no more for life insurance than those without asthma, so they shouldn’t accept a higher premium too lightly. However, know that premiums can increase by up to 100% depending on the severity of your asthma. If you have any level of asthma and you smoke, premiums can also increase considerably as smoking has been proven to aggravate the condition.

How do I find the best insurer?

You need to find an insurer that is sympathetic towards asthma sufferers, who thoroughly understands the condition and one who isn’t going to hike premiums up by 150% because of your condition. One you’ve put in the time that’s required to find such a company, you should be able to get a reasonable life insurance quote without any hassle or risk of being hit with an outrageously high premium.

For your information, an asthma sufferer should only have to answer a questionnaire before being offered a life insurance quote, unless they have been hospitalised several times, in which case the insurer will request to write to their GP for more info.

Most Common Types of Life Insurance in Ireland

The decision to take out a life insurance policy is very important with the reason being that a life insurance policy ensures that dependents of the policyholder are paid out should he/she die while it’s in place. In short, a life insurance policy pays out a lump sum on your death, which can offer financial reassurance and assistance to loved ones in this unfortunate event. The cost of life cover depends on the benefits you want, but other factors like your age, gender, state of health and lifestyle are also very important factors that may affect your premium. If you have a dependent family, a life insurance policy should really be considered a necessity, as you don’t want your family to have to endure financial hardship during what will already be a very testing time in their lives.

When trying to choose a life insurance policy, it is important to shop around. The more channels you check out, the more likely you are to find a competitive quote. You’ll be offered the option of several different types of life insurance policies depending on your circumstances. To make the process of choosing the right cover a little easier, the following is a breakdown of the most common types of life insurance policies in Ireland:

Term Life Insurance

This is the most common and one of cheapest types of life insurance policies. You simply choose the period of time that you want cover for – be it 10 years, 20 years or more – and the amount of cover you wish to have paid out in the event of your death (an assured lump sum figure). The higher the amount of assured cover, the higher the monthly premium. In the event that you don’t die within the term period, you’ll simply be paid out the assured sum. In the event of terminal illness, you can apply for 80% of the assured sum to be paid out, with the remaining 20% paid to dependants on proof of your death. Term life insurance will not be paid out in the event of a suicide or death that’s caused by an illness that you had before taking out the policy and had not declared.

Whole Life Insurance

Whole-of-life insurance policies are not taken out for any fixed term, and as a result the premium is not fixed. A whole-of-life insurance policy is designed to financially protect your dependents should you die at any time. It is therefore a more expensive option than term life insurance. Whole life insurance may prove a more attractive option for those looking for long-term life insurance protection.

Mortgage Protection

Mortgage protection insurance pays out a lump sum to pay off your mortgage to a lender in the event that you die. Mortgage protection insurance will run for the same length as your mortgage term. If you die, your dependants will not receive a lump sum, your mortgage will just be paid off. Although it may seem like this is not directly beneficial for your family members, having this policy can take away a huge financial burden from them and you can rest assured that your family will still have a roof over their heads if you pass. Typically, as the years pass by and the remaining amount of your mortgage decreases, so too does the amount of your mortgage protection insurance premium.

We hope this guide helps you better understand the types of life insurance policies available to you. As previously mentioned, be sure to shop around and consult a financial advisor to ensure that you get the best policy for you and your family.