FAQ
Q. What is the average life cover?A. This is a question I get all the time and the answer is simple - there is no average. Life cover is designed to replace income, therefore it is a very personal decision for each individual. The industry recommends a minimum of 10 - 14 times annual income, eg. €20,000 should have a minimum of €200,000. A very simple calculation will show that this replaces income for 10 years. This begs the question, what do your dependents do after that. The level of life cover people have on average is considerably below that level. People in general are under insured.
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Q. When should I start a pension?
A. The simple answer is now!
The earlier you start the better - even if you just start with small payments. Remember that there are very generous tax savings for payments into a pension plan, so if you are not currently paying into a plan, then you are effectively losing money all the time - paying more tax than you should be!
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Q. What is term assurance?
A. This is where you insure your life for a specific period. If you die within that time the sum assured will be paid to next of kin. It is the cheapest of all life assurance but it has its shortcomings. You can have an added benefit of a conversion option, which extends the term.
