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Welcome to the Financial Column in association with Money Plus, Bridge St., Boyle

Q. Last week’s question focused on protecting your family if you’re unable to work…
Following on from this we received a couple of questions also relating to protection ….What amount of life insurance should I have to protect my family (especially where there are young children) in the event of death through accident, illness etc. and how much would this cost ?

A. This is a very important and relevant question. To put it in context – recent research carried out by Irish Life found that over half a million parents with children under 17 have no life insurance at all.

So how much life cover should you have and how much will this cost? As a general rule of thumb – the standard recommendation is to have life insurance of about 10 times your net after tax wages.
We recommend that this should be taken out as level term life insurance at a minimum, and in the case of a couple, also on a dual life basis.

Level Term life insurance means that you have an amount of life cover, i.e. €300,000 and that this amount remains the same for the term of the policy. If taken out on dual life basis, this means that there is life cover of €300,000 on each life.

The cost of life insurance has fallen over the last number of years due to the fact that we’re all living longer, and increased competition between the life insurance companies. The younger you are when taking out life insurance, the cheaper the premiums.

The examples below shows the monthly premiums for a person (male or female), non-smoker, for a term of 20 years, for €300,000 life insurance (level term) at different ages, on a single life and on a dual life basis:

 

Single Life

Age                                                                                              25                        35                                45                                   55*

€300,000 life insurance for 20 years (Single)      €15.36pm                €22.45pm             €47.83pm                 €103.99pm
Dual Life

Ages                                                                                                25                   35                               45                              55*

€300,000 life insurance for 20 years (Dual Life)       €26.37pm      €337.75pm          €81.64pm                   €190.74pm

Note: Above quotes are based on rates at November 2015.
*Quotes at age 55 are for a term of 15 years.

You should consult an independent financial adviser like Money Plus to ensure you get the most suitable advice in order to protect yourself and your family, depending on your specific circumstances. In this regard Belinda McCauley would be delighted to assist you. Belinda’s contact details are : 086-7847827/071-9194000 or email: [email protected]

 

MoneyPlus are experienced investment and financial brokers and have been in the business of financial and investment planning for many years.  They are dedicated in providing bespoke financial planning advice to clients. If you would like further advice on the above or any other financial information please contact Belinda McCauley in our Boyle office on Bridge Street on 071 9194000 or [email protected]

 Boyletoday.com/MoneyPlus accept no responsibility for any decisions taken as a result of advice provided in this column.   A reliable recommendation can only be made following a full detailed consultation taking an individual particular circumstances into consideration

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