LIFE & PROTECTION

The financial consequences of death, illness, incapacity or hospitalisation can be extremely difficult. Luckily, you can protect against such disasters. Call us now for a FREE financial health check.

Life Cover

Suitable Life Cover will ensure financial security for your loved ones or business in the event of your premature death. There are many different policy types offering death benefit each tailored to your personal circumstances. Talk to LMFS today to determine which products best suit your needs.

Mortgage Protection

Provides life cover that reduces in line with your mortgage. It clears the outstanding balance should you die during the term of your mortgage.

Mortgage Protection is a requirement when taking out a mortgage but this doesn’t mean you have to commit to a policy that does not suit you. Depending on the cover required, there are a range of different options available when it comes to Mortgage Protection. Talk to us today to determine the level of cover that suits you.

Income Protection

This is an insurance cover that provides a replacement income if you are unable to work on a medium to long-term basis due to a sickness or injury. Insurers will pay out once you can provide medical and financial evidence to support your claim. It means that should you be unable to work for a prolonged period due to sickness or injury your bills will still be paid.

Serious Illness Cover

Specified Illness Cover (SIC) is sometimes known as Serious Illness Cover and it provides a lump sum payment on the diagnosis of any of over 60 ‘specified illnesses’ covered in the contract. It is not a subject people like to think about but unfortunately, any one of us could be struck by a serious illness, at any age and any time.

Medical advances and healthier lifestyles mean that most people are now surviving serious illnesses and leading long active lives following recovery. Often, although they get a clean bill of health patients may be ordered to reduce their workload or stop working altogether. This could obviously have a serious financial effect, with mortgages and other outgoings remaining due. Once the diagnosis of a condition covered by the policy is certified the lump sum is paid to the claimant. At LMFS we can help you find SIC cover suitable to your needs.

Keyman Insurance

Keyman Insurance provides cover on skilled employees who have important roles in your business. This product is designed to compensate your company when a key employee dies or becomes seriously ill. The proceeds can be used to source and or train another person for the role the employee filled.

The main benefits are:
• If a key employee dies a cash lump sum is paid to help maintain your business.
• Interruption to your business in the event of an untimely death is minimised.
• May discharge bank loans guaranteed by the key employee.
• Can provide funding to source/train a suitable replacement.

Co-Director Insurance

Co-director Insurance is a business-specific life insurance that provides compensation to a company if one of the directors of the firm dies. On such a death a lump sum is paid, and the company will be in a position to purchase the deceased person's interest in the company from their next-of-kin.

The main benefits are:
• Facilitates buy-back of shares if a director dies
• Surviving directors retain control of the company
• Deceased’s next-of-kin do not have to become involved in the business
• Abates financial loss for next-of-kin
• Can also cover a director for Serious Illness

Partnership Insurance

Partnership Insurance is a specific life cover providing compensation to a business partnership. If one of the partners dies a lump sum will be released, allowing the deceased person's share of the partnership to be bought from their next-of-kin.

The main benefits are:
• Facilitates buy-out of interest in the business if a partner dies
• Surviving partners retain control of the business
• Deceased’s next-of-kin do not have to become involved in the business
• Abates financial loss for next-of-kin
• Can also cover a partner for Serious Illness

Estate Planning

What are the tax implications when you die? What taxes are payable by your next of kin? Any assets passing to a spouse are free of Capital Acquisitions Tax (CAT). However, any other bequests are subject to CAT, for all amounts above the lifetime allowances set out in the table below. One can plan to defray a CAT payable by effecting what is known as a Section 72 Insurance Policy. Section 72 policies are life policies taken out specifically to discharge Inheritance Tax. Such policies are exempt from inheritance tax insofar as the proceeds are used to pay the inheritance tax that arises on the death of the life assured. One can effect a policy on one’s own life or spouses/registered civil partners can effect a policy on joint lives so that in the event of both deaths, their loved ones can use the proceeds of the policy to discharge the inheritance tax liability. The difference between a Section 72 policy and a regular policy is that with a Section 72 policy the proceeds are not included in the estate – with a regular policy the proceeds would be included in the estate and be subject to CAT.


Current CAT thresholds (from 12 October 2016)


Group A: €310,000
Applies where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.
Group B: €32,500
Applies where the beneficiary is a brother, sister, niece, nephew or lineal ancestor or lineal descendant of the disponer.
Group C: €16,250
Applies in all other cases.

 

Protection Terminology Explained

Mortgage Protection Assurance
Mortgage Protection Assurance is designed to provide life cover that matches the term and amount of the relevant. In effect, amount of cover reduces in line with the mortgage balance.
Level Term Assurance
Level Term Assurance provides life cover over a specified term of years. The cost and the sum assured remain fixed for the entire term.
Convertible Term Assurance
Convertible Term Assurance is similar to level term assurance but the policy owner can opt to extend the term of the policy at any time while the policy is valid, without any need to provide any further medical information. It is often referred to as Guaranteed Insurability.
Whole of Life Assurance
The whole of Life Assurance provides life cover for all of one’s life. The cost is usually reviewed every 5 years and the premium will increase to reflect the older age of the life assured.
Indexation
Indexation is available on most policies, whereby the level of cover is increased annually by a pre-agreed percentage.
Joint Cover
Joint Cover provides cover on 2 or more lives and the cover ends on the first death of an assured party.
Dual cover
Dual cover provides cover on 2 or more lives and the cover continues on the lives of the survivors after the first death of an assured party – in effect, there is double cover.
Specified Illness Cover
Specified Illness Cover (also known as Critical or Serious Illness Cover) provides benefit that will be paid if the assured is diagnosed with any of the extensive list of conditions attaching to the policy.
Income Protection
Income Protection provides income in the event of the assured being unable to work due to illness or disability.
Life Assured
Life Assured refers to the person whose life is insured.
Policy Owner
Policy Owner is the person who owns the life insurance policy. It is usually the insured person, but it may also be any other person with an insurable interest - a relative of the insured, a business partner or a corporation with whom the life assured is involved.
Premium
Premium is the amount payable to the life insurance company in return for the cover provided. It is usually paid on a regular basis, most often monthly or annually.