SAVE CASH

When was the last time you reviewed your life assurance.
Very often people take out a life assurance plan when they do their Home Loans.

Very often the Life Assurance Plan is sold with a few addons and what may seem reasonable in the early years is now becoming expensive. Very often people never seek to review their ongoing needs even when family/dependents come along.

The bottom line is that it is a legal requirement when you take out a loan on your family home that there must be life assurance in place to cover this loan, so that in the event of your premature death this loan is cleared. In all cases the simplest life cover is mortgage protection, which insures you for the full term of the loan on a reducing basis in line with reductions in your mortgage. This is usually the cheapest form of cover and will range up to 40 years if necessary.

However, there is a wide range between costs among the various providers and in more recent years the cost of this type of cover has reduced significantly. A lady now aged 33 took out such a policy @ €13.64 pm on €125k for 30 years 5 years ago, today she can get cover on the same €125k for the remaining 25 years @ €10 pm – this represents a saving of €750 over the lifetime of the loan.

This is just on area of saving, another is unsuitable cover being provided to people such as providing long term life along with serious illness cover – say selling 35 year term cover and serious illness to a couple when it is quite obvious that they really only need the high level of cover when their kids are dependent and excessive cover in later years is at it’s costliest.

In a nutshell there are huge savings to be made but it is imperative that you get Independent Professional Advice.

The Recession: Are u or is your business under pressure?

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 – seek Independent Professional Advice, 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.