Research reveals how little time many of us put into choosing an annuity so this week we look at how to get the most from your retirement pot. This is one of the biggest decisions any of us will make. You only get one crack at it, but it’s a decision that can influence the next 20-30 years of your life. So it’s distressing to see some people spend less time than most of us put towards working out our next holiday or what car to buy.
What is an annuity?
We don’t need as much life insurance as life insurers would like to sell us! You don’t want to buy insurance you don’t need. Here’s how to figure out whether you need it and how much you need.
To avoid buying life insurance you don’t need, ask yourself a simple question:
If I die, will my family or loved ones miss my income or financial support?
That’s the key question for most of us. If you can’t think of anyone that you care about who depends on you financially or for other support (e.g. in the home), life insurance isn’t for you.
Please take a minute to read our 3 top tips for mortgage protection policies.
1. Most mortgage protection policies are assigned to banks to cover loans from borrowers, but what most people don’t realise is that you don’t have to use the same company that provides the mortgage and you can change the provider at any time, if you can find a better price. There has never been a better time to review your cover. For example one provider is offering to match the lowest price on the market and then give an additional 10% discount for the full term of the policy. Terms and conditions apply.
2. If there are two people on the mortgage, the mortgage protection is normally sold on a joint life first death, decreasing term
With the lifetime community rating (LCR), now in place, it is thought that between 75,000 and 100,000 people signed up ahead of last Thursday night’s deadline*. It’s reported there was an even split between people buying quality health cover and those buying a cheap, entry-level plan.
It’s worth bearing in mind that not having private health insurance does not mean that you can’t get access to top quality healthcare if you want. If you’re willing to bear the full costs of treatment, then you can have all the top quality healthcare you want, when you want. It’s just that many people could never afford it.
What is Lifetime Community Rating (LCR)?
In Ireland, everybody is charged the same premium for a particular health insurance plan, irrespective of their age, gender and the current or likely future state of their health. This is called community rating.
On the 1st May 2015, the government will introduce Lifetime Community Rating legislation. Under Lifetime Community Rating (LCR), community rating is modified to reflect the age at which a person takes out private health insurance. Late entry loadings are applied to the premiums of those who join the health insurance market at age 35 or over.
Please click here to see our latest Newsletter for quarter 1 2015