Lifestyle Protector Plan and Personal Income Protector

D

Dinarius

Registered User
Messages
508
I am self employed/sole trader.

I have had both a Lifestyle Protector Plan and a Personal Income Protector plan policies with Irish Life since 2001.

I am paying about €200 p/m to pay for them. (Lifestyle €140/ Personal Income €60)

Lifestyle covers me for specified illnesses and would pay €190k. It has a cash-in value of about €5,700.

Personal Income would kick-in after 13 weeks of illness. It will stop when I am 60. (I'm 55)

I have no children and no dependents.

Do they make financial sense?

Thanks.

D.
 
If you were unable to work, what would you survive on? As a sole trader, you get nothing from the State if you couldn't work.

The Personal Income plan will become more expensive as you get older. But if you work past 60 and do not have the assets to retire comfortably, it may be a good source of income when your income protection finishes. Although it is more limited in its scope for payout.

Steven
www.bluewaterfp.ie
 
I'm reviving this thread since I recently received a letter from Irish Life about my Lifestyle Protector Plan policy.

As of 1 February, 2016, I will have to increase the premium to maintain the same level of cover. The situation is as follows:

Current cost of cover is €142p/m for €190k illness cover and a value of €5.5k

Suggested alternatives are as follow...............

Option A: Specified illness cover €190k
Revised Premium €250.00 p/m

Option B: Specified illness cover €145k
Maintain same cost of cover €142p/m

Option C: Specified illness cover €170k
Revised premium €194p/m

I'm 55, non-smoking, commercial photographer.

My wife is 8 years younger, civil servant.

We are double income, no kids.

I could afford the extra premium, but I also am reasonably secure as I am. We could easily live on what my wife earns.

So, should I simply pocket the extra premium money and allow the level of cover to drop?

Thanks.

D.
 
Last edited:
I can't advise you on whether to keep the cover or not. The cost of the cover will keep going up and up after each review.

But when you say you can easily live on what your wife earns, I presume that's when you are healthy and not bringing in an income. What about if you had a stroke or got cancer? Will the situation be the same with the additional bills and stress of having a very sick husband and having to provide an income to make sure everything is paid for?


Steven
www.bluewaterfp.ie
 
Many thanks for the reply and I take your point.

I have no intention of giving up the policy, and I will probably retain it with the existing premium and the resulting reduced cover.

Question: Given I've been paying into this policy for 30 years, or thereabouts, and never had a claim (thankfully!), why does the cost of it keep rising?

Thanks.

D.
 
Dinarius said:
Question: Given I've been paying into this policy for 30 years, or thereabouts, and never had a claim (thankfully!), why does the cost of it keep rising?
Click to expand...

Don't be equating this to car insurance, where if you don't make a claim you get a discount.

As you get older, you are actuarially more likely to make a claim. That is why it was so cheap when you first took out the policy. It is highly unlikely that a 25 year old will have to claim for a serious illness. Now you are 55, it's much more likely that you will and you are being charged accordingly.

Steven
www.bluewaterfp.ie
 
You must log in or register to reply here.
Back
Top