TUI Income continuance

dingding

Just looked at the TUI income continuance plan.

https://www.tui.ie/financial-insurance-services/income-continuance-plan.196.html

And while in the headlines it is an income continuance plan, it includes a number of other products which inflate the premium and the comission to cornmarket.

The Commission is 12.5% and for a salary of 50,000

The cost of the income continuance part is 575 per year of which 71.81 is a commission

The total cost is 850 per year which includes the commission of 106.25

Also at the commencement of the policy, there is the conveniently vague payment of 0 to 400 euro

The additional items include:-

Disability Benefit
Death Benefit
Specified Illness Benefit
Pension Premium Protection Benefit
Medical Immunity (allows you to join Cornmarket’s Retired Members’ Life Cover Plan, without medical underwriting)

The death benefit covers accidental death and the terms exclude most causes of accidental death. The specific illness benefit also has exclusions which act to the detriment of the client.

The Disability benefit has the following conditions

TUI Income Continuance Plan
Almost everything in your life depends on your income – your family, your home, your regular outgoings.
Income Continuance helps you to protect your salary against the impact of illness, providing you with a replacement income of up to 75% of your salary less any other income (e.g. Early Retirement Pension, Temporary Rehabilitation Remuneration, State Illness Benefit)

And there are more details in the plan. The 75% also includes a deduction for any social welfare payment.

So at 50,000, your income continuance would be up to 37,500 less your social welfare illness payment. less approx 10K social welfare, = 27,000


https://en.wikipedia.org/wiki/Product_bundling


What are your opinions on this

https://www.tui.ie/_fileupload/TUI%20Income%20Continuance%20Plan.pdf

The cornmarket booklet, not linked to from the TUI site offers more information. (Page 27 details the charges)

https://cornmarket.cdn.prismic.io/cornmarket%2Fae371deb-cd49-4d06-896f-df96a0a4bafd_12706+tui+ic+plan+summary+booklet+v2+06-18_rebranded_.pdf


Was this a good deal ??????


Also Cornmarket offer a FREE retirement planning and financial advice service.

https://www.tui.ie/financial-insurance-services/motor-and-other-insurance.193.html#Finan%20Plan

A further opportunity to flog overpriced and bundled packages to members.

dingding

Some articles on tying / bundling of financial products.

https://www.irishexaminer.com/business/study-mixed-bundling-of-financial-products-replaces-tying-109810.html

https://eba.europa.eu/regulation-and-policy/consumer-protection-and-financial-innovation/guidelines-for-cross-selling-practices?p_p_auth=hSXr2fx1&p_p_id=169&p_p_lifecycle=0&p_p_state=maximized&p_p_col_id=column-2&p_p_col_pos=1&p_p_col_count=2&_169_struts_action=%2Fdynamic_data_list_display%2Fview_record&_169_recordId=1019950

Should we lobby at Congress for an unbundled deal or a better range of options?

dingding

Also, note Cornmarket won the tender at a later stage for the AVC.

https://www.cornmarket.ie/uploads/12748_Update_AVC_charge_statements_11-17_rebranded_TUI.pdf

This helpful leaflet identifies the charges for the AVC's

There is a setup charge taken from the first years premium of 525 euro and the annual charges are helpfully vague.

Cornmarket is paid initial and renewal commission
out of the opposite referenced charges for the
ongoing administration and marketing of your AVC
Scheme. They are not additional charges.

It would be interesting to see what TUI are paid as a finders fee for both of these policies

TheDriver

There is tax relief on the payments. Its a difficult one as every product on market has fees and commission attached and difficult to establish if its a rip off or standard practice. Like all insurance, it seems useless until you need it

gaiscioch

Cornmarket is generally more expensive. I paid €150 to an independent financial guy in Maynooth who specialises in public sector pensions and he advised me to leave various Cornarket stuff I had purchased via ASTI promotions. Essentially he said their Irish Life funds are "C students" in terms of their returns, and the commissions are far higher than better performing funds (Zurich, in both cases). So I moved.

Curiously, the only Cornmarket policy he advised to keep was the Salary Protection one, which like yours has similar bundled cover. He said it's expensive, but good.

As regards insurance policy commission generally, there is an insurance "discount broker" in Greystones called LA Brokers which frequently gets a mention on this website as it has very low commission insurance policies for PRSA, mortgage protection etc policies but doesn't give advice. Once I had researched my options, I saved quite a lot by going through it to purchase various policies. There are probably similar "discount brokers" in Ireland that would be worth checking, although I'm not sure if any do salary protection (as I stayed with Cornmarket for that).

Millem

I had written a big long post!!

I couldn’t find a income protection plan cheaper plan than cornmarket. Teachers are very high risk apparently when it comes to sick leave.....some companies wouldn’t even quote me!!!


On the cornmarket one you end up with more than 75% of your income if you are sick as they refund you your premium for the period that you are claiming. I pointed out to them there is a tax issue as part of your premium is tax deductible but then if they refund it to you they give you back the full amount so it’s tax free!

dingding

Thanks, everyone, I tried a couple of other quotes and the issue it is cheap for my age now, but not cheap for the age I commenced at. The lack of an age loading makes it good value for an older person.

The main point I was making is that if is bundled with a load of other products many of which you would not buy if yor had a choice and each additional product is additional premium and additional commission for cornmarket.

If you need it, it is good value but I hope you never need it, a bit like health insurance, you don;t really want to be claiming on the policy.

The life insurance portion did anyone ever get it secured on a mortgage or to secure a loan. I am paying for life insurance separately to meet this.

joebloggs32

A few years ago I was in with the bank looking to set up a college saving fund. The financial advisor/salesman looked at everything I was buying. He asked me if I had income continuance with the TUI/Cornmarket. When I said yes he said I'm not going to even try sell you that as you won't get anything cheaper.

TheDriver

I had same experience. I was advised similar to above, cornmarket product was better than anything they could sell me