3 Ways You May Be Underinsured For Life Insurance

Let me know if this sounds familiar.

Although you’ve had to make drastic cutbacks, you’ve come through the worst of the last few years.

Now you find your finances are finally under control; in fact, you even have some money left over at the end of each month!

But what should you do with the extra few bob?

Before you start overpaying your mortgage or starting a pension, check to see how you’d fare in a toe to toe with the three biggest threats to your financial security.

1. Death

I assume you have a mortgage protection policy to clear your mortgage?

Good.

Your family can keep their home should you die.

But how will they pay for anything else?

• Is your partner’s income sufficient to maintain the lifestyle you planned for them?
• Have they enough savings they can use to replace your income?

If the answer is no, you need to consider a life insurance policy.

How does life insurance work?

2. Illness

Ah but shur, I’ll never get sick, my parents lived till they were 400

Optimism is a powerful thing, and such thinking might keep illness away. I hope it does.

I do.

However, the facts don’t lie.

1 in 4 of us will get cancer.

Let that digest for a second.

If you go for lunch with three people tomorrow, the odds are, one of you will get cancer in your lifetime.

Not because you went for lunch with them…just because of odds and stuff.

Serious illness cover pays a tax-free lump sum if you contract a serious form of cancer, heart attack, stroke (and 58 other illnesses)

That lump sum will give you the freedom to take time off work to focus on recovery without the stress of paying your bills.

3. Injury

Physical health injuries (leg breaks, car accidents, back injuries) and mental health injuries (anxiety, stress, depression) are the main reasons people cannot work.

If you can’t work, you can’t earn an income.

If you can’t earn an income…well, you’re screwed.

Check with your employer whether you have a policy that covers long term disability.

I hope you have such a policy, but you should consider insuring your income if you don’t.

How does income protection work in Ireland?

Over to you…

Are you anxious that you may be underinsured?

1. Don’t panic.
2. Start small.
3. Insure against all the things that threaten your family’s future.

If you’d like me to make a recommendation on the types of cover you should consider based on where you are in life, please complete this questionnaire, and I’ll be right back.

Nick McGowan
lion.ie | making life insurance easier