What is life assurance?
Life assurance is money an insurance company pays to your beneficiary, such as your spouse, when you die. The company will pay an amount called the sum assured, in return for your payment of premiums. Following your death, a lump sum is paid to compensate your family for the loss of regular income, to clear outstanding loans and to provide for your children.
Your needs will change as you go through life
When you’re single, you only have to consider protecting yourself financially. When you get married and have a family, you’ll want to protect them. When you buy a home or start a business, you’ll want to protect your investment and the people you employ. You might need just one type of cover or you may need to mix and match plans to suit you better.
How much cover do you need?
Everyone’s situation is different. When working out how much cover you should plan for, it may be helpful to figure out how much money you or your family would need each month to pay the bills. You can do this by writing out a simple list of monthly expenses like your mortgage repayments, groceries, energy bills, childcare and socialising costs.
Then, decide how long you want the cover to last (e.g. until your children are finished college ). Remember that your circumstances will change over time so if you have an existing plan, it may be worth reviewing it now.
How much will it cost?
The cost of your life cover will take into account the following factors:
• Your age
• Your health
• Your smoker status
• Your term of cover
• The benefits you choose
CMCC Financial Solutions are a firm of independent financial advisers with offices in Headford and Moycullen.
Call today to arrange a no-obligation review your financial planning arrangements on 093 34033 (Headford ) or 091 556399 (Moycullen ) or email; [email protected].
Conor Carey BBS QFA