By Dave Kavanagh

There are very different cover requirements in terms of what stage of life you are at. This is primarily based on the financial loss that may occur in certain eventualities. For those in their 20’s or 30’s, they may have recently purchased their first home, maybe started a family, and are settling into a career. This is the stage with potentially, the biggest financial loss, as their mortgage may still be quite substantial, children are young (so will remain dependant for longer) and savings may not be built up yet (or were used to buy their home.) Planning is so important at this stage, to make sure their is sufficient life cover, serious illness cover and income protection. The good news is that the younger you are and the earlier you plan, the cheaper these types of protection are. The next stage, possible 40’s or 50’s, as children are older or grown up, mortgage balance is lower, and some savings have been built up. At this stage, it is a good time to “future proof” cover, while it is still relatively affordable and also, possible to be accepted for cover. It may be that health issues have occurred, needing you to avail of conversion options that are already in place with existing cover (if you don’t know if your cover has such an option, now is the time to check!) The financial loss may not be as potentially high as the earlier stage so lower amounts of cover are more appropriate. At the stage when people are coming close to, or have reached retirement, it will very much depend on their own, specific circumstances, as some may be mortgage-free and have good pension and savings in place. Others may still have a mortgage to clear and may not have made the same provisions for pension and savings. Either way, the specific, potential financial loss needs to be examined to make sure sufficient planning is in place. This could range from simply making sure things like funeral costs would be covered, up to planning that inheritance tax is cleared from any estate you may leave behind, by commencing a section 72 plan. Whichever stage you’re at, make the time to plan.

Dave Kavanagh QFA has been advising people financially for over 25 years. For quotes or information (with no cost or obligation) he can be contacted by emailing info@financialcompanion.ie or use the contact form on www.financialcompanion.ie or @Davekav_advice on Twitter and Instagram. Combined with his previous role of gym/nutrition adviser, he regularly gives talks and workshops at seminars and events for groups, companies and government departments on financial wellbeing, positivity and motivation. As heard on RTE 2FM , LMFM and TV3.