Make Me Richer: a guide to cover in case of illness  


SERIOUS ILLNESS COVER

This pays out a tax-free lump sum in the event that you contract one of the defined illnesses covered under the plan, which usually includes certain types of malignant cancers, heart attack, stroke, and multiple sclerosis. What would a couple in their mid-30s fork out each month? They were looking for €100,000 serious illness cover on a joint life convertible basis over 20 years with no indexation of benefits or premiums.

Best: €55.52 Low.ie (via Friends First)

Avoid €67.27 Zurich Life

Save: €2,820 over the term of the policy.

www.low.ie, 1890 300 388

INCOME PROTECTION

Another way to make sure you have regular income to pay your bills if you are out of work due to illness or injury is income protection.

It is sold on the back on some of those cheery statistics that suggest a 30-year-old is more likely to be off work due to an illness or injury for a long period, than to die before the age of 65.

The policy is designed to replace some of the money you earn each month, but payments don't kick in until you are off work for a certain length of time known as the deferred period – which in this case is 13 weeks. This 39-year-old white-collar worker does not smoke, will have income benefit of €33,750, and expects to retire at 60.

Best: €71.78 Aviva, via Low.ie

Avoid: €98.07 Irish Life

Save: €6,467.34 over the term of the policy

www.low.ie, 1890 300 388

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Sunday Indo Business
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