John Smiles,
Qualified Financial Advisor,
Hooper Dolan Financial

Life insurance is not a simple product. Life policies have many elements to be carefully considered to arrive at the type and amount of cover required.

Life assurance myths

Do Single persons need cover?

Single people need enough life insurance to cover the costs of personal debts, medical and funeral bills. Otherwise, you may leave a legacy of unpaid expenses for your family or executor to deal with. Life cover can be a good way to leave a legacy to your favourite charity.

How much life cover do I need?

You need to cover the loss of the breadwinner's salary to provide for your family for several years. You also need to provide an amount equal to your mortgage; other loans and provide for medical and funeral bills.

Is life insurance at work sufficient?

It depends on your circumstances, for a single person of modest means; employer-paid cover may well be enough. But if you have a spouse or other dependents, or need cover upon your death to pay estate taxes, then additional cover may be necessary.

Are premiums tax deductible?

In most cases they are not, however the cost of personal life insurance may be deductible where you are self-employed or the cover is used to insure the business.

Is term cover best?

The cost of term life cover can become very high in later years; therefore, those who know for certain that they must be covered at death should consider permanent cover through a whole of life policy. The total premium outlay for a permanent policy may be less than the ongoing premiums for an initially cheaper term assurance policy.

Do only breadwinners need life cover?

The cost of replacing the services previously provided by a deceased homemaker can be higher than you think, especially when it comes to cleaning and day care.

Am I better off investing my money?

You take a big chance when you depend solely on your investments in the early years of your life, especially if you have dependents. If you die without cover for them, there may be no other means of provision after the depletion of your current assets.

Hooper Dolan Financial Limited is regulated by the Financial Regulator Hooper Dolan Financial offers one-on-one independent advice on Mortgages & Lending; Life & Pensions and Savings & Investments www.hdf.ie Tel: 051 849111