Update 17th November : Life Protection – the Basics

What types of life protection are most commonly offered?

There are four main types of protection to give you and your family a lump sum or a regular income in the event of an illness, accident or death:

·         Life Assurance

·         Mortgage Protection

·         Income Protection

·         Specified Illness cover

You can choose and combine these plans according to your needs

                                                                                                                                                        

What is Life Assurance?

Life assurance gives your family a cash payment if you die during the term of your plan. Your family can use this money however they choose. There are different types of life assurance:

·         Whole of life cover lasts until you die or for as long as you decide to make your monthly payments. Your payments can be increased throughout the life of your plan to make sure you get the lump sum you want.

·         Term life cover is a policy you pay for over a specified period. You can also use it to provide life cover during the term of your mortgage.

·         Mortgage protection is a lump sum paid on your death, or that of your spouse, to help your loved ones pay off the outstanding balance on your mortgage.  Mortgage lenders usually require you to have mortgage protection in place for the length of your mortgage. We offer mortgage protection plans that cover just you, or that include both you and your partner/spouse.

What is Income Protection?

Income protection provides you with a replacement income if an accident or illness affects your ability to work and earn a living, for a period longer than 4 weeks.

You get regular payments that begin after you have been on sick leave for a certain period of time. This is called a deferred period and you choose whether you want to set it to 4, 13, 26 or 52 weeks when you are setting up your policy.

What is Specified Illness Cover?

Specified illness cover is a health insurance plan. It provides you with a cash payment if you are diagnosed with any of a specific list of illnesses, including Alzheimers, cancer, cardiac arrest, multiple sclerosis or stroke.

You can take out specified illness cover alone, or combine it with life assurance to increase your protection

What is Accelerated Specified Illness Cover?

Accelerated Specified Illness cover is life assurance and specified illness cover in a single policy.

If you make a specified illness claim under this type of policy, the amount of money paid out on your death will be reduced by the amount you have already claimed.

If you would like further information please contact Michael on 086 8440541 or email info@mkfinancial.ie .

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland.

Update 9th November - Life Cover – Protect what matters most

Who knows what will happen next in our lives!

We always hope it will be something good, but nothing is certain in life. Fortunately, it’s possible to protect yourself from some of the financial uncertainties that come with unexpected events in your life.

Sudden or untimely death is not as rare as you think

·         Approximately 10,000 people die each year from cardiovascular disease including coronary heart disease and stroke. It’s the most common cause of death in Ireland, accounting for 36% of all deaths**.

·         One in three people in Ireland will develop cancer during their lifetime, and an average of 30,000 cases of cancer are diagnosed each year. Cancer is the second most common cause of death in Ireland, and accounts for over one quarter of the annual death toll.*

                * Cancer.ie, January 2014

                ** Irish Heart Foundation, January 2014

The unfortunate reality is that when you die, taxes, bills, mortgages, loans, education and grocery bills don’t stop and life must go on for your loved ones.

Affordable Peace of Mind

Life Cover is a lot more affordable, flexible and accessible get than you might think. You simply choose the level of cover that fits you and your family’s needs and the level of payments you can afford to make. You choose the length of time you want the cover to last and the amount of the lump sum that your family would receive if you were to die while the cover was in place.

Sample Life Cover Quote (subject to normal underwriting conditions)

€19.41 per month (approx. 64c per day)

20 year term

€200,000 Total Life Cover

Cover for one person, non-smoker, age 37

 Very little money for complete peace of mind!

Update 2nd November - What is income protection?

Income protection provides a replacement income if you cannot work due to illness or injury after a certain period of time.

How it works …

·         You must be in full-time paid work as a self-employed person, an employee or a company director to qualify for income protection.

·         Your occupation, health status and age could also affect your eligibility for the cover.

·         As a company director or employer, you can also offer group income protection to your full-time staff.

·         Decide how much of your income you want to protect. This depends on your salary, your sick pay arrangements and the amount of money you need to pay your bills and maintain your lifestyle. You can insure up to 75% of your normal income up to a maximum benefit of €262,500, less any social welfare payments.

·         Decide when you want your income protection to start.  The time between the start of your sick leave and your first income protection payment is called your deferred period. You decide whether it should be 13, 26 or 52 weeks. For example, if your employer will pay you for 6 months, go for a deferred period of 26 weeks. The longer your deferred period, the cheaper the cost of your income protection policy.

·         Decide how you want to manage your payments

Your options …

Guaranteed Premium

·         Your premium level is set and does not change

·         Your benefit level is set and does not change

Reviewable Premium

• Your premium can be reviewed every 5 years, which will give you an option of an increase in premium or a reduction in benefit

Indexation

·         You can choose indexation on both of these options. This will make sure that your benefit increases as the cost of living goes up. Just remember, if your benefit increases, so will your premium.

Term

Decide how long you want to keep your income protection. Many people keep their income protection until they retire. But you can pick any age between 55 and 70.

What it costs

How much you pay each month depends on:

• Your age
• Your occupation
• Your health status
• Whether you are a smoker
• How much of your income you want to protect
• Deferred period

It won’t increase if you make a claim and you can claim tax relief on what you pay.        

We at MK Financial will take you through all of the above decisions and can then recommend the best plan to suit your circumstances.

If you’d like more information, please give Michael a call on 086 8440541 or email info@mkfinancial.ie.

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Update 25th October 2016

Capital Acquisitions Tax for Business Owners

As a business owner you have probably created a successful and profitable business and you and your family enjoy a comfortable lifestyle.

With the changes to Capital Acquisitions Tax announced in the recent Budget, now might be a good time for you to take a look at the implications of CAT especially if you are thinking about passing on your business to your family when you die. Inheritance tax or Capital Acquisition Tax can become a real burden when financial resources are tied up in a business

There are some tax free thresholds but these depend on the recipient’s relationship to the business owner.

Did you know?

·         Your children can only inherit €310,000* from you tax free.

·         Anything in excess of this, per child, is taxable at 33%.

·         Leaving assets to your children may result in them having to pay Inheritance Tax.

Source: Capital Acquisitions Tax Consolidation Act 2003 (as updated). *Group 1 Threshold available from 12 October 2016.

If you do not plan ahead, your family could be faced with a difficult decision between having to sell the business or borrow the money to pay the tax liability.

There are a number of solutions including taking out a life assurance policy to cover the cost of the inheritance tax liability thus ensuring that the business won’t have to be sold off.

Every business should have a succession plan in place, even if retirement or sale is not a current prospect.

For further information contact Michael on 086 8440541 or email info@mkfinancial.ie

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland.

Why should I start a pension?

A pension is a smarter way to save.

If you like saving money but hate paying tax, you will love retirement savings. Unlike a deposit account where you pay DIRT on any growth, with a pension you can actually claim tax back!

• Tax relief available on contributions

• Tax free growth on your pension fund

• Regular income in retirement, potentially income tax free

Your income could drop by up to 66% in retirement.

When you retire, you’ll probably expect to maintain the same standard of living. However, unless you put a retirement plan in place, your income could drop by nearly 66% when you retire. The State

Pension Contributory is €12,132*, but the average industrial wage is €35,874**.

You need to save for your retirement to help avoid a big drop in income.

* Source: Weekly State Pension Contributory 2016, www.welfare.ie.

** Source: CSO, Average weekly Industrial Wage, Earning and Labour Costs, 31 March 2014.

You may need an income for up to 30 years or more when you retire.

You may be retired for up to a third of your life and that’s why it’s so important to have a savings plan that ensures that the money you earn during your working life lasts your whole life.

It can provide you with the security of a regular income to ensure a comfortable standard of living for your retirement.

Your retirement could amount to as much as a third of your life so it makes sense to save now so that you can relax and enjoy this time.

If you do qualify for the State Pension, you could be 68 before you receive it.

The age of eligibility for the State Pension (Contributory) has changed and no longer starts at age 65.

That’s potentially a three year gap in retirement income!

• If you were born on or after 1 January 1955 the minimum qualifying State Pension age will be 67

• If you were born on or after 1 January 1961 the minimum qualifying State Pension age will be 68

Don’t delay, talk to MK Financial today!

Call us on 086 8440541 or email info@mkfinancial.ie        

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Review your pension BEFORE the tax deadline!

Calling all Employees and Self Employed Individuals

If you are an employee or are self-employed, then you have a once off opportunity to maximise your tax savings and increase your pension contributions. But you must act now!

The Opportunity

You may be able to make a once off, lump sum payment into your pension before the tax deadline of October 31st and offset it against last year’s tax bill. This will allow you to increase your retirement savings and save tax!

Save Tax and Increase Your Pension Contributions in 3 Easy Steps

1.       Check out the Revenue limits table below or contact your local tax office, to ensure you are entitled to claim tax relief on the extra amount you now wish to save for the 2015 tax year.

2.       Pay the amount you wish to save by October 31st, and you will then be issued with proof of

payment.  Payments must be received by the October 31st, so don’t delay!

3.       Contact your local Revenue office with proof of payment by October 31st, stating that this contribution has been paid against your 2015 income.

Save Tax
If you paid tax at 40% in 2015, then a €1000 investment into your pension now could only cost €600, as you could claim a refund of €400* from Revenue.	Tax Bands	40% Tax	20% Tax
	Gross Payment	€1,000	€1,000
	Tax Relief Available	-  €400	- €200
	Net Cost To You	€600	€800

Terms and conditions apply

* Revenue limits, terms and conditions apply. It is important to note that tax relief is not automatically granted, you must   apply to and satisfy the Revenue requirements. Your benefits at retirement may be subject to tax.

Revenue Limits
The maximum percentage of your salary/earnings that you can normally save into your pension each year and claim tax relief on, is shown in the table opposite. For example, if you are 35 years of age and already contributing 5% of gross earnings to your pension plan, you could be able to pay up to 15% extra as a lump sum now!	Age	Revenue Tax Relief Limits
	Under 30	15%
	30 – 39	20%
	40 – 49	25%
	50 – 54	30%
	55 – 59	35%
	60 & over	40%

Warning: The value of your investment may go down as well as up.

Warning: If you invest in this product you will not have access to your money until you retire.

Don’t delay, talk to MK Financial today!

Call us on 086 8440541 or email info@mkfinancial.ie        

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Update 4th October - PROTECT YOU AND YOUR FAMILY

 If you earn an income, own a home, have a family, a business or an investment property, then protecting you and your family against the financial impact of ill-health, terminal illness or death is one of the most important decisions you can make.

 Having the facts to hand means you can make an informed decision on what life insurance you and your family need.

 

What should you be protecting?

We insure our home, our car, our holidays and sometimes even our family pets but the very thing we often overlook to insure is the most important of all, ourselves and our families.

Many people do not realise the financial impact that an unexpected serious illness, injury or premature death can have on a family. The unfortunate reality is that Irish families are struck by these events every day and the financial impact can be significant and long lasting.

You probably have mortgage protection to clear your mortgage and secure your home, but have you thought about how your family would cope with all the other outgoings each month if you got seriously ill or died prematurely?

Having a life insurance plan is an effective way of providing peace of mind knowing that should the worst happen, your loved ones will have the financial security they need at such a difficult time.

You can set up your life cover to pay a lump sum amount, a monthly income amount or both on a Single, Joint or Dual Life basis.

• Lump Sum on Death Benefit: this pays out a lump sum in the event of death, or in certain circumstances on diagnosis of a terminal illness, during the term of cover.

• Income on Death Benefit: this pays out a monthly income on death or, in certain circumstances on diagnosis of a terminal illness, for the remainder of the term of cover.

• Whole of Life Benefit: this pays out a lump sum of up to €50,000 on death. The difference with this benefit is that it will be paid out even if death occurs following the end of the term of cover for the main benefits. If, for example, your term of cover ends at age 65 for other benefits and you die at age 90, this benefit will still be paid out provided that you have paid all premiums when due.

What is the difference between single, dual and joint life insurance?

Single Life – Covers only one life insured.

Joint Life – A joint life insurance policy covers two lives and may provide for a payment in the event of death of the first or last life covered depending on the type of policy you have. For example:  Joint Life First Death cover will pay on the first claim for a benefit. The cover in respect of that benefit will then cease for other lives.

Dual Life – Covers two people independently. Dual cover could potentially pay out two separate payments for each benefit covered.  In the event of a claim by one of the lives insured, the cover on the other life insured will continue as before.

You can also protect your income (Income protection), your mortgage (Mortgage protection) or your assets (Business protection). 

If you’d like more information, please give Michael a call on 086 8440541 or email info@mkfinancial.ie.

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland