Whilst the front door of our office is closed, we have the full team working behind the scenes from their home. Over the last number of weeks, we have been receiving many queries in relation to insurance protection cover and claims.
The coronavirus is impacting all our lives and has caused a lot of uncertainty for everybody.
In this post I want to answer some of the said, COVID-19 related questions, and also want to revisit the area of securing life and general insurance.
8 Frequently Asked Insurance Questions
I would like to point out up-front that insurers will assess all individual cases on their merit and will
always seek to be fair in their assessment.
Am I still covered by my policy?
The cover that you put in place will remain as long as you have continued to pay your monthly
premiums. If not, ring us and we can see what can be done.
Cash is tight – can I arrange a premium holiday?
Some of the bank lenders are offering this facility at the moment. Some of the Life and Insurance companies are also trying to be flexible. For example they might give you a few months off with a view to making up the missed premiums over the next 12 months.
What about cancelling my policy and reinstating when I’m back at work?
I cannot stress enough that whatever you do, you should keep your existing plan(s) in place and take
advice before taking any further steps.
Is dying from the Coronavirus virus covered?
If you were to die, then assuming the medical information you provided when signing-up for the
policy was correct, then the answer would be yes.
Is critical illness covered during the Coronavirus?
The evidence is that the majority of people recover fully from this virus, therefore it is not an ongoing
critical illness. If you were unfortunate enough to die, then you would be covered.
How about Income Protection Policy pay-outs?
If, whatever your claim is for, is as a consequence of COVID 19, I would expect the income protection
to be paid (usually after a deferred period).
How about my Mortgage Payment Protection Policy and unemployment?
These policies have become less common in recent yeas but if you have one then I would imagine it unlikely that furloughs, voluntary redundancy or reduced hours by an employer would be covered. However, full unemployment claims should be paid.
Should I take out a new policy to cover myself/family?
You should know that many insurers are looking at the extra risk caused by COVID 19. They are accepting new life, critical illness and income protection policies but I recommend that you contact us before doing so.
I am aware that there are many questions not covered by the above answers. These are the most frequent that we have received. I hope that we have addressed at least some of the fears and concerns that you may have.
If you have any additional questions, whatsoever, please do not hesitate to contact us at admin@mortgageline.ie or call us on (01) 707 9880.
Home Insurance
Despite the current coronavirus environment, this is the time of year when people start to look for
new houses or start researching a move.
Either of those two options will call for having the right insurance for your home so as to provide
peace of mind. Here are some key points to consider when choosing a policy:
– Buildings Sum Assured – (the cost of rebuilding, not the market value)
– Contents Cover – (sometimes a standard % of the sum assured, above, is suggested)
– Accidental Damage – (automatically cover you for the consequences of certain events e.g. flood and fire, but not accidents)
– All Risks – (a separate element of the policy covering items away from the home)
Be very careful about being attracted to go for the cheapest premium –
a) it may not offer you the right level of cover
and…
b) it might include hidden excesses.
When buying online directly, watch out for default settings. These are there to generate cheaper quotes.
In all honesty, it really is best to get professional advice call us on (01) 707 9880.
Life Insurance
Life insurance has one job: It replaces your income by paying a lump sum when you die. If you have family/dependents relying on you financially, you really must have life insurance – fact. Unfortunately, many people skip looking into buying life insurance as it looks at a financial scenario after death. It helps those we leave behind if we have plans in place to secure sufficient finances for their everyday living.
In a previous blog post, I spoke about the types of insurance needed for a mortgage. Now I just
want finish this post by giving you a few key points about life insurance.
Types of Life Assurance
There are two main types of life insurance.
The one most people need is ‘term’ insurance.
This pays out if the policyholder dies within a stated period – the ‘term’.
and…
The other type – ‘whole of life’ insurance – pays out on your death, whenever that occurs.
This is more expensive and sometimes has an investment element.
If you need life cover my opinion is that it is best in most cases to go for a basic Level Term Policy.
You can get the cover you need at a reasonable price.
The biggest difference between term and whole life insurance is the length of coverage.
Whole life insurance policies have no expiration date and are more expensive than Term life because they will pay out at some point (as long as you keep paying the premiums) and can also have a cash value or Investment component.
Deciding whether whole life insurance is right for you boils down to two questions:
1. Do you want to build cash value?
And/or…
2. Do you want to leave money behind for your spouse, children, or grandchildren?
My Key Points:
– Start as soon as you can. (Life cover in your 20’s and 30’s is much more affordable)
– Get enough cover
– If you’re a couple – you both need one (separately)
– Work cover isn’t enough
– Review regularly
It is important to take professional advice before making any decision relating to your personal
finances. There are many sources of information for you such as insuranceireland.eu and of course
our own MortgageLine site. If we can be of any assistance, please call or email us and we’ll get back
to you pronto.
Thank You, Stephen
This blog post is intended to provide a general appreciation of the topic and it is not intended as advice.
