By Dave Kavanagh
There are many aspects of life that people take for granted, especially if it’s something that is long running and gets paid by direct debit from your bank account. I regularly see clients that have had the same cover plans in place, without ever checking if they are still suitable for their current circumstances. Changes in employment, income, new additions to family, or moving home are just some of the things that could completely alter your requirements. You could even be paying for something that is no longer required or needed. If a plan was taken out directly with a bank or insurance company (where it was not compared) you could be paying premiums way higher than necessary.
What kind of details should people be aware of?
For a start, just knowing the basics would be helpful. With things like life cover, mortgage protection or serious illness cover, what premiums are you paying? How much cover is in place? When is the plan due to expire? Does it have a conversion option that would allow you to continue cover beyond the end of the plan if your health deteriorated? Is it “dual” or “joint” cover? If you pay for income protection, has your salary reduced or increased over the years? Are you paying for levels that you may no longer be able to claim for? While it may not be the most “fun” exercise, taking some time to examine the details of anything you may have in place, is usually very worthwhile. You may save yourself money but you will also have the peace of mind that what you have in place is the most appropriate for your circumstances.
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 firstname.lastname@example.org or use the contact form on www.financialcompanion.ie or phone 087-6414570, 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 and TV3.