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How much are you paying for life assurance?

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  • 27-07-2011 6:42pm
    #1
    73trix
    Registered Users Posts: 1,190 ✭✭✭


    I have life assurance with serious illness cover - currently paying E62/month. The serious illness is a bit dubious as it is v specific and rules out alot of things. I signed up a few yrs ago when taking out mortgage as the bank guy advised me it was a good option as I was going alone on mortage. However, it does bug me that there are many illnesses apparently not covered. Then I wondered would I be better off on an income protection policy instead of serious illness but I really haven't a clue. I got a couple of on-line quotes but they were quite pricy e.g. E120/month ish.

    Like everyone else, I am trying to cut back and savemoney wherever I can and It bugs me that this policy could actually be useless to me if I were to get the wrong condition(god forbid of course) down the road after paying so much money out.

    Any suggestions welcome, thanks.


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    #2
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    Serious/Critcal illness is now often termed 'Specified Illness' as it is more accurate. It worth can only be judged by you yourself and it is an expensive benefit but it covers a number of illnesses. How many people do you know that has had a heart attack or a stroke...a lot right? God forbid that it befalls you at least you know you wont have to worry about making mortgage payments.

    Income protection is another policy and should not necessarily be seen as an alternative to Specified illness cover. They can work very well as complimentary policies. It will provide you with a replacement income and does not limit you to the type of illness you have. You are entitled to tax relief on your premiums which will make it more affordable.

    At the end of the day cost is king, while it is important to ensure you are covered effectivly, there is very little point in impoverishing yourself to pay for it.


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    #3
    73trix
    Registered Users Posts: 1,190 ✭✭✭73trix


    [QUOTE You are entitled to tax relief on your premiums which will make it more affordable.
    .[/QUOTE]

    Thanks but I did look into tax relief but was told I'm not entitled to it as I do not have a stand-alone serious illness cover. It's a life assurance with serious illness cover combined. Sucks really as, if I just had serious illness alone, apparently I would be entitled to tax relief. Hibernian say that they cannot separate the policy into two separate ones for the purpose of tax relief and as such revenue turned it down.


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    #4
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    73trix wrote: »
    [QUOTE You are entitled to tax relief on your premiums which will make it more affordable.
    .

    Thanks but I did look into tax relief but was told I'm not entitled to it as I do not have a stand-alone serious illness cover. It's a life assurance with serious illness cover combined. Sucks really as, if I just had serious illness alone, apparently I would be entitled to tax relief. Hibernian say that they cannot separate the policy into two separate ones for the purpose of tax relief and as such revenue turned it down.[/QUOTE]

    Hi 73, im sorry just need to clarify, Income protection policies attract tax relief, specified illness policies do not.


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    #5
    skippy2
    Registered Users Posts: 393 ✭✭skippy2


    I have Income protection policy through my pension policy at work and was diagnosed with a long term progressive illness that i would definitely not have had covered on the Specified illness policy so am i glad I had the right one in my case. This policy payment is also tax deductible unlike the serious illness protection policy
    This will payout as long as I am unable to work - I have another 20 years to normal retirement - so well worth it over a short term once off payment.
    My suggestion would be forget the serious illness cover and get income protection. I my case at least I am much happier and better off long term and so grateful that i did have this in place.


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