RTE Drivetime: ‘Talking Money’ on good versus bad insurance, 2nd March 2015

Talking Money is a segment every Monday on RTE’s Drivetime show where Karl Deeter and Jill Kerby talk about big financial issues. This week it was about insurance, and how to tell the difference between the ‘good’ kind, the ‘bad’ kind and how much each one matters and costs.

This is an important topic because too many people have too much of the wrong type of cover and not enough of the good type.

Read More

Talking Money on Drivetime RTE1: End of community rating, 16th February 2015

Sorry about the delay on the sound clips! We faced a delay in getting them recorded (all our own fault too). On the 16th of February ‘Talking Money’ was one of the early adapters of the issues surrounding the end of lifetime community ratings in health insurance. Listen in as this is going to be a very important consideration up to the end of April and inevitably there will be people caught out by it.

 

Read More

Newstalk: Coleman at large ‘Economic recovery… Are we there yet?’

We discussed housing and the economy with Marc Coleman on his Sunday night show ‘Coleman at Large’. Other guests included Dan White from the Herald, Constantin Gurgiev of Trinity, Sheena Horgan who works in marketing and Karl Deeter.

Read More

Talking Money on RTE Drivetime: Keeping up insurances

This week on ‘Talking Money’ which is on RTE’s Drivetime Mondays at 18:15 we covered the issue of mortgage arrears and how it impacts on insurance, in particular life cover.

The problem we see time and again is that people cancel their life insurance to save money and that is false economy, or worse, they took out cover with the bank and it’s tied to the mortgage payment so that when you miss one you miss the other, this is a mistake and we set out what you have to do to fix it.

Read More

Sunday Independent: Weigh up the cost of insurance

This is a piece we wrote for the Sunday Independent (originally appeared on the 4th of May).

We buy insurance to protect something we own or value. When asked, ‘What is your greatest asset?’ many people will say their family home; the more enlightened might say it’s their health.

Wealth is clearly something which many of us value – however, some people incorrectly mistake their income for wealth.

Cashflow can have endless liabilities stacked against it, which is why believing a person making six figures is ‘wealthy’ is often wrong – when viewed in the totality of their financial position.

Assets minus liabilities equals wealth – that’s a basic accounting equation.

It’s important to have a good understanding of wealth and of what you value before buying insurance. You should also ask yourself if the insurance in question is worthwhile.

The principle of indemnity is that you can’t be insured beyond the loss you experience, and there is always the issue of the cost of insurance versus the risk of the …

Read More

Does an e-smoker have to pay higher insurance prices like a smoker does?

Do e-cigarrette smokers get treated like regular smokers when it comes to life assurance prices? The smoking status (which is in its strictest form described as having smoked ‘any tobacco in the last 12 months’) varies from insurer to insurer. 

Irish Life: at present someone who uses e-cigarettes (ie no other tobacco-related products) is classed as a non-smoker (Please note this may change in the future).

Aviva: smoker rates

Zurich: rate “e-smokers” at +50%, assuming that they have already been off (tobacco) cigarettes a minimum of 12 months, the reason being the likelihood of these smokers returning to full smoking habit is quite high.

Caledonian: considers anyone smoking tobacco or e-cigarettes, or anyone using nicotine replacement patches, gum etc in the past twelve months to be a smoker. Smoker rates will apply to that client.

New Ireland: classes e-cigarette users as non-smokers, but this is currently being reviewed.

Friends First: smoker rates

Worth considering which company to speak to if you use e-cigarettes!

Read More

Talking Point with Sarah Carey: the role of unions, joined by John Moynes, Gerald Flynn & Karl Deeter

I had the pleasure (and it was fun I admit) of joining Sarah Carey on talking point on Saturday. The thrust of the show was about unions (or ‘labour price fixing cartels’ as I like to call them) and their general role in a modern economy. I did try to make some fairly polarised anti-union arguments, but in truth there are always nuances and they get brushed over in any debate even when you don’t try to take a one sided approach.

The pro’s and con’s of unions are many, and some were learned first hand (I mentioned a few of them). Sarah presided well over the shower of troublemakers lovingly called ‘the panel’. John Moynes and Gerald Flynn also did a fine job of justifying the necessity for labour unions in the workplace, they even managed to do it without getting angry at me and I did try to give them every opportunity.

A special hats off to …

Read More

Permanent Total Disability insurance explained

Permanent Total Disability cover pays out the sum assured when the life assured is diagnosed as being permanently unable to work again due to disability or sickness. Because this policy only pays out on permanent disability there is typically a waiting period of  6-12 months before payments is made, this is to ensure that the medical condition is permanent. However, in case where the medical condition is obvious payment can be made sooner.

There are two types of  PTD, a: any occupation cover, where the benefit is only paid  if the life assured is permanently unable to follow any occupation. b: own occupation cover; where the benefit is paid if the life assured is permanently unable to follow his or her own occupation.

Permanent Total Disability may not be offered to certain professions or may be offered at increased premiums, where the life assured has a higher risk of injury due to their employment. e.g. farmer, construction worker. PTD cover usually ends at 60-65 years of age.

Some life companies offer an alternative PTD cover for those who are over …

Read More

What is ‘Permanent Health Insurance’?

Permanent Health Insurance is an insurance which may be optional or required in relation to a housing loan.  PHI can be arranged as an individual or as part of a group scheme organised by their employer or a trade union. PHI is to provide an alternate income in the event that the individual suffers a loss of income by being unable to work due to sickness or disability lasting longer than the “deferred period”.

This period is typically 26 weeks (although it can be as low as one day or four weeks), so the policy does not pay out until the 26 weeks have passed. The payments are liable for income tax, under the PAYE system, however the policy premiums qualify for income tax relief at the individuals marginal rate, up to a limit of 10% of total income.

The payments could continue until the individual returns to works or the policy cease date is reached, which might be at the age of 60 or 65.

An optional extra usually offer with PHI policies is a “waiver of premium” (wop), …

Read More