Policies, Policies, Policies

I (stupidly) was in with an AIB financial advisor for a quote for mortgage protection.

He tried to sell me the kitchen sink - life cover, serious illness cover, term life assurance - I left with my head in a spin, and I’d consider myself financially minded, god knows how does less so feel.

Anyway my question is what policies what you got and why?

We’ve no dependents - both have good jobs with a decent income split 55%/45%, some savings left over - so my thoughts are we don’t need much more than the mortgage protection at this stage.

My thought are to keep saving separately rather than pay for expensive policies

(a) I’ll probably never use
(b) Probably struggle to get them to pay out on anyway (income protection)

Now we hope to have kids in the next year or so so maybe I’ll have to re-assess then.

I’d love some input on what people feel about all these policies and what they feel is absolutely necessary.

PS no policies via work for either of us, both 30 and healthy, wife has aviva policy for maternity issues

Shop around for mortgage protection. The bank will demand you have it, but they can’t make you buy theirs. Two choices - life assurance first-die policy for lump sum or reducing balance, I think. AAM is a good source of this info.

The rest is rubbish IMO. As you say, never use or never pay out or can’t afford it if you have a period of unemployment etc. If you have company life insurance (death in service benefits), you’re well covered - check the small print of your contract, that’s pretty standard.

Thanks Yogan - have mortgage protection lined up via La brokers about €200 but only €45 in year one.

Must check the death in service thing out.

Fixed that for ya.

This is a legal requirement if you want a mortgage on your PPR rather than something the banks want you to have.

Lots of company pensions give you the death in service benefits even when your contract doesn’t say it.

In the exact same boat myself. Putting mortgage protection in place (no issue).

After that I don’t know what I should have/need.

Thinking a round sum like 2/300k life cover on both of us (wife expecting at present) to cover off the other plus child if one of us dies.

I assume that wouldn’t be double coverage - i.e the mortgage would be paid off and the wife woul get 2/300k if i kicked the bucket.

Not sure about illness/income protection. Will the fuckers payout? Better off saving yourself? That 20/30pm would build quickly anyway.

Herself works so least if one of us got sick we’d survive for while. All a bit confusing.

I’m also in a similiar situation. Buying a house this year, so obviously will have the mortagage protection in place when that goes through.

However I’m single so if something happens to me (such as long term illness) then I’m in trouble. I have a permanant post in the HSE, however I don’t know how long / what sort of illness benefit I would get if I was hit by a car or got cancer or something else that meant I couldnt work for a significant period of time. Therefore I presume I should be looking at some sort of income protection as well?

Most public sector workers PHI (worth approx 10% of basic salary).

Can you expand please? I have no idea what you mean :blush:

Permenent health insurance (PHI) pays approx 66% of your basic salary until you recover/retire/die after you have been off for 6 months (deferral period).

You referring to LF?

^^ cheers Mantissa, have discussed pension policies with him previously, so will probably go back now that you’ve reminded me.

These can be quite difficult to claim under, and there are usually all sorts of exclusions in them in the private sector. If signing up, definitely check the small print as it can end up being worth less than you pay. Especially check that your job is covered too. Quite a few of them mis-sold over the last number of years.