DO I NEED LIFE INSURANCE?

It is important to consider life assurance particularly if:
• your family or others rely on you for financial support.
• you have loans or debts, such as a mortgage on the family home.
• you act as a guarantor on a mortgage for somebody else.

If you are in a permanent relationship and have dependant children, you may want to consider a joint or dual policy, even if just one of you is earning an income. If your partner is involved in looking after the home and children, their death could lead to extra childminding or housekeeping costs. A joint policy covers two people on the same policy and could pay out a lump sum benefit if either of you die (joint life cover) or if both of you die (dual life cover) within the term of policy.

You may NOT need life cover or you may need LESS cover if:
• no family member or close friend depends on your income.
• you have 'death-in-service' benefit through your job or pension plan - this kind of plan pays out a lump sum if you die during your working life.
• your dependants would be entitled to certain social welfare benefits after your death. • you have investments or property that could provide an income or be sold for cash.
• you are older and your family is grown up or if your partner is earning an income - in general, the older you are the less life cover you should need.

Your circumstances:
You are single with no dependants.
Why you may need life insurance:
Clear any debts you may have. Leave money to a sibling, close relative or friend.
Your need for life insurance:
Low.

Your circumstances:
You have a partner but no dependant children.
Why you may need life insurance:
Replace your income and pay off any debts Pay for any taxes that might be due on your death.
Your need for life insurance:
Medium.

Your circumstances:
You have a partner and dependant children.
Why you may need life insurance:
Provide enough money for your family's dayto- day.
Your need for life insurance:
High.

HOW MUCH LIFE COVER DO I NEED?
This depends on your life stage. Generally, if you have a young family, you would need a larger lump sum than if your children are older. You will need to consider buying enough insurance to:
• cover your family's income needs for as long as necessary.
• pay off your mortgage and any other loans.
• cover costs that might arise when your children are older, for example school or college fees.

How long do I need life cover for?
If you have a young family or plan to have more children, you may need life cover until your youngest child has left school or college. This could mean a term of 20 to 25 years. If your children are older, five or ten years of cover may be enough.

THE RECESSION: ARE U OR YOUR BUSINESS UNDER PRESSURE
Unfortunately, we are in the midst of a deepening and very harsh recession, with further hardships to be endured before we turn the corner. Undoubtedly, there will be casualties, with business folding, significant job losses, large drops in income, less money around, incomes across the economy cut, and households struggling to make ends meet. These alone are huge pressures but also there will be additional perceived pressures.

If a business or indeed a household is under pressure the first signs are picked up on by their banks, payments missed, overdraft limits being pushed out, more regular breeches of overdraft, less being lodged to account, etc – these are all tell tale signs. What do I do when I feel that we are taking water, when credit is going to dry up and income also reducing and the problems are threatening to get worse?

Well here are a few Dos and Do Nots

Do Not
• Stick your head in the sand and pretend the problem will go away
• Take on more borrowings without proper advice
• Avoid creditors, ignore post or phone calls
• Make false promises or spin stories to keep creditors or banks at bay.

Do
• Communicate, communicate and communicate with your banks and creditors
• Once Difficulties become apparent advise your creditors immediately
• Be truthful and upfront regarding your difficulties • Only make realistic commitments -- ones that you know you can honour
• Seek help --- get a trusted adviser
• If you are unable to meet the banks or feel that you are at a disadvantage have an adviser intercede on your behalf and make the necessary negotiations
• Initiate the first meeting Get Help. Do not isolate yourself or your family.

Jim O Kelly QFA,CEB, BFS Jim O Kelly is executive director and sole proprietary owner of Benchmark Financial Services BMW Ltd, The Square, Ballaghaderreen. Jim Has 30 years experience in the Financial Services industry and has an Hons degree in Financial Services from UCD. Jim also holds Diplomas in Investment Advice and Wealth Management and is a member of both The Institute of Bankers in Ireland and Professional Insurance Brokers Assoc.