Already have Life Cover or Life Insurance? Then you are alright then…or maybe not…
Recent research from Caledonian Life has shown how many people who already have a Life Cover policy may be under-provisioning for their dependants and beneficiaries in the event of their untimely demise or serious illness.
Caledonian have revealed that the average claims payout on its Life Assurance business was €101,200 in both 2010 and 2011.
A hundred grand might seem at first glance like a princely sum but on closer examination, it is likely to provide only a few years of subsistence income to your beneficiaries if they have been previously been dependent on your income.
Marketing Director, Greg Dyer explains;
“What would most concern us is the fact that the average pay-out is actually quite low relative to the incomes of the people and would signal that most people have insufficient cover to meet the future financial needs of their dependants.
At 58 years of age an increasing number of people in this country still have dependant children living at home, and a €101,000 lump sum is very little for a family to substitute loss of income of the primary breadwinner.
Life assurance policies are intended to provide customers with peace of mind and financial security for their families should the worst happen – they pay out when people need it, but there needs to be a sufficient sum to provide the necessary security.”
As the graph above illustrates a surprisingly large 37% of claimants are under the age of 55, a great many of which would fit into the ‘squeezed middle’ bracket i.e. they are at a stage in their lives where outgoings on mortgage payments, children’s education and everyday living are at the most onerous.
If a family require an income of €4,000 per month, this would mean that in as little as two years the life cover payout would be exhausted!
To calculate your own Life Cover requirements, visit our Life Assurance Comparison Quote Form for more information. You can also contact Ocean Finance for qualified financial advice using our contact form or phone us on 01-8693400.