Jiblet-run
Registered User
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- 62
My background - married with infant son. Early 30's. I am the sole earner. I earn a good salary. Home owner. We are all in good health. My wife has no plans to enter the workforce anytime soon and we may plan to increase our family in the next few years.
My current level of protection is:
1) Basic mortgage protection cover for both me and my wife - to pay off the mortgage in the event of either one of our deaths
2) My DC pension provides a payout (in the event of ONLY my death) of 8 times my basic salary plus my pension contributions. Due to Revenue limits - 4 times basic salary plus pension contribution can be taken as a lump sum - the remainder can be used to buy an annuity and provide a salary for my wife & son.
I am looking at the following areas (and if there are areas I have omitted please let me know):
1) Serious illness cover - to provide a lump sum if either my wife or I contracted a serious illness
2) Income protection - to provide a salary if I was unable to work - my company only pays 10 weeks of sick leave.
3) Improvement of death pay out cover - supplement the lump sum pay out for my death and include my wife, so that I would receive a lump sum in the event of her death. -
I mentioned a Revenue limit above - my pension company informed me this - is there a limit to what death lump sum payout a person can receive? Or is the information that my pension company gave me just in relation to pension lump sum payouts due to the tax free nature of them?
Now I am aware that all of this can be quite expensive and in addition I may not need all elements.
I have reviewed a website http://low.ie/ (no affiliation with the website) and I've gotten different quotes based on putting differing lump sum amounts.
I guess I don't know how much of a lump sum I should go for? 100k, 200k, 500k?
Is there a way of estimating / a formula based on your salary perhaps?
In terms of life assurance companies - are there ones with better reputations that won't nit pick every detail and try to find loop holes to prevent paying out?
So if anyone is in a similar situation like me, I would appreciate sharing with me what options you chose or if anyone has any opinions that are welcome.
A work colleague mentioned to me that there is a tax deductible element to this? Is this for just income protection or does apply to all life assurance products?
Thank you for taking the time to read.
JR
My current level of protection is:
1) Basic mortgage protection cover for both me and my wife - to pay off the mortgage in the event of either one of our deaths
2) My DC pension provides a payout (in the event of ONLY my death) of 8 times my basic salary plus my pension contributions. Due to Revenue limits - 4 times basic salary plus pension contribution can be taken as a lump sum - the remainder can be used to buy an annuity and provide a salary for my wife & son.
I am looking at the following areas (and if there are areas I have omitted please let me know):
1) Serious illness cover - to provide a lump sum if either my wife or I contracted a serious illness
2) Income protection - to provide a salary if I was unable to work - my company only pays 10 weeks of sick leave.
3) Improvement of death pay out cover - supplement the lump sum pay out for my death and include my wife, so that I would receive a lump sum in the event of her death. -
I mentioned a Revenue limit above - my pension company informed me this - is there a limit to what death lump sum payout a person can receive? Or is the information that my pension company gave me just in relation to pension lump sum payouts due to the tax free nature of them?
Now I am aware that all of this can be quite expensive and in addition I may not need all elements.
I have reviewed a website http://low.ie/ (no affiliation with the website) and I've gotten different quotes based on putting differing lump sum amounts.
I guess I don't know how much of a lump sum I should go for? 100k, 200k, 500k?
Is there a way of estimating / a formula based on your salary perhaps?
In terms of life assurance companies - are there ones with better reputations that won't nit pick every detail and try to find loop holes to prevent paying out?
So if anyone is in a similar situation like me, I would appreciate sharing with me what options you chose or if anyone has any opinions that are welcome.
A work colleague mentioned to me that there is a tax deductible element to this? Is this for just income protection or does apply to all life assurance products?
Thank you for taking the time to read.
JR