Section 72 Life Assurance

The term Section 72 is often used to describe a protection policy arranged for the specific purpose of providing funds on death to pay inheritance tax likely to arise from the death of the policyholder. Any type of protection policy can be used for this purpose usually non profit or unit linked whole of life policies.

The proceeds of policies arranged under Section 72, are exempt from Inheritance Tax, to the extent that the proceeds are used to pay Inheritance Tax, arising from an inheritance provided by the deceased policyholder.

Most Section 72 policies are effected by a married couple on a joint life last survivor basis, where the policy covers two lives assured and the sum assured becomes payable on the death of the last to die. As there is no Inheritance Tax between spouses, an Inheritance Tax liability would not arise in these cases until the death of the last of the two lives assured to die.{KomentoDisable}

{module More on planning for the future}

The true cost of cancer.

 When you think about cancer, what comes to mind are the medical symptoms and how it could affect your life.

You probably think of someone you know who is battling cancer.

What we often fail to give proper regard to, are the financial consequences of discovering that you have cancer.

The National Cancer Registry Ireland carried out a report which highlighted the severe financial burden that is placed on a family as a result of a cancer diagnosis.

These factors included the following:

Increased medical costs such as consultant fees and expensive medications.

Out of pocket expenses, such as travelling to appointments in medical centres of excellence located far from home.

Reduced earning capacity, as well as loss of time when attending medical appointments.

This includes family members.

Increased utility bills due to increased cost of heating while a family member recovers at home.

Increased stress and strain, which can lead to depression, anxiety and emotional stress.

You will have enough to cope with without adding financial strain to your life.

Research shows that 1 in 3 men and 1 in 4 women will suffer from cancer t some stage in their life. (National Cancer registry Ireland,2011)

What can I do to relieve the financial strain?

Help is at hand. Cancer cover is a new protection plan. It pays a benefit on the diagnosis of cancer of a specified severity.

This is great news for anyone looking for value for money. it is cheaper than traditional Serious illness cover. {KomentoDisable}

Call us on 1890 666 666 for full details and to start getting peace of mind today.

Or use the quote button.

Don't gamble with the future of your business.

Protect the income of your business.

What would happen if your business had to move premises as a result of flooding?

How would you pay for the cost of moving?

Who would pay for the loss of income?

If the damage was large enough and the move took a long time it could seriously damage the future prospects of the viability of your business.

Why take the risk. Take out business income protection insurance.{KomentoDisable}

Use the quote button above.

Protecting the business with co-director insurance.

 Co-Director Insurance

 Co-Director Insurance is an alternative way of arranging Partnership Insurance for shareholders of a company where to the company carries the burden of the premium payments, rather than the shareholders personally.

A key aspect of the arrangement is that on the death of a shareholder, it is the company which buys back the shares of a deceased shareholder, not the surviving shareholders.

An outline of the arrangement is:

• The company enters a Contingent Purchase Contract with each shareholding, so that in the event of their death, the company would have the option which it can exercise within a limited period of death, to compel the deceased’s next of kin to sell their shares back to the company at a fair open market value. Likewise the deceased’s next of kin would also have an option to compel the company to purchase the shares from them. In this way the purchase/sale of the deceased’s shares can be triggered by either the company or the deceased’s next of kin after death.

• The company effects a life assurance policy on the life of each shareholder covered by such an agreement, to provide funds on death to enable the company to complete the buy back of shares. The premiums are paid by the company. As the policy is owned by the company, the payment of the premiums is not a BIK for Income Tax purposed for the shareholder covered by such a policy.

• In the event of death of a shareholder covered by such a Contingent Purchase Contract, the company would use the proceeds of the policy on his life to buy back his shares on death and cancel them. The surviving shareholders would therefore retain full ownership of the company as the deceased’s shareholding would then be cancelled.

It should be noted that this is a complex arrangement.

For independent advice and help contact one of our qualified experts today.

{KomentoDisable}

Protecting the business Partnership.      

Partnership Insurance

The sudden death of a partner can cause immediate financial problems to surviving partners:

• In the case of a partnership, the death of a partner can cause the immediate dissolution of the partnership, unless there is a prior agreement to the contrary.

• The next of kin of a deceased partner may want to come into the business with the surviving partners, who might not want this.

• Even if the next of kin are willing to sell their share of the business back to the surviving partners, the surviving partners simply may not have the liquid or the borrowing capacity to do so at that time.

Structure

There are two key components to the structure of a Partnership Insurance contract:

• There is a legal agreement, often called a Buy/Sell Agreement, between the partners, under which on the death of a partner the deceased partner’s next of kin are bound to sell, and the surviving partners are bound to buy, the share if deceased partner.

• To ensure that the surviving partners are in a financial position to complete the transaction, each partner’s life would be insured for a sum assured equal to the estimated value of their share of the business, in order to provide sufficient liquid capital on death for the surviving partners.

Arranging

The life cover can be arranged in one of two ways

• Life of Another- where one partners insures another partner’s life

• Own Life in Trust- each partner insures himself for an amount equal to the estimated value of their share of the business.{KomentoDisable}

 Mortgage Protection

 Are you in the process of buying a house, thinking of buying a house in the near future or currently repaying the mortgage on your house?

 Mortgage Protection may be a requirement by your lender when taking out a mortgage.

It is also a very useful protection for your family, should you die before you repay the loan.

Mortgage Protection - (also known as decreasing term assurance), has a sum assured which reduces each year (or possibly each month) by a stated amount, decreasing to nil at the end of the term.

It is normally used to cover a reducing debt, such as the capital outstanding on a house purchase mortgage, with the sum assured being linked to the reduction in the capital outstanding under the loan.

Although the cover decreases each year, the premium remains constant.

Premiums are sometimes payable for a shorter period than the policy term itself, because otherwise there would be a temptation for the assured to lapse the policy in the last year or two, when the sum assured has reduced to a comparatively low level.

Premiums for Mortgage Protection are either slightly cheaper than for level term assurance for the same initial sum assured and term – or the same, but payable for a shorter period.

Mortgage Protection is the cheapest form of Life Assurance available.

The reason for this is that it decreases in line with your mortgage repayments every year.

If you have a mortgage on your property this type of insurance is vital.

The cover will be paid directly to the lender who will use the funds to pay off the outstanding balance of the mortgage.

In this way the borrower’s dependants will then own the residence in full, without any outstanding mortgage.

 It is also possible to add accelerated serious illness cover to your mortgage protection so that you are covered in the event of premature death and also being diagnosed with a serious illness: whichever event comes first.

Mortgage Protection cover is only suitable if you have a Capital and Repayment mortgage.

It is not suitable for an Interest only facility.

mypremium.ie can help you choose from a range of providers to find the cheapest and most suitable protection available and suitable for your needs.

How can I be sure that I am paying the best mortgage protection rates on the market?

By using our free comparison service.

We compare the top providers in Ireland to find you the best deal for your circumstances.

We also have a dedicated switching team, to make the move easier, when you decide to move to a better rate.

Think of how much you save over the course of the mortgage.

Contact us today on 047 62500

or use the quote button 

{KomentoDisable}

Income Protection for you.

With tax relief up to 41%

Ever wondered how you will pay your bills/ mortgages, look after your family should you be unable to work and have no income?

mypremium.ie can ease this worry for you by protecting your income with an Income Protection policy.

A huge benefit of taking out an Income Protection policy is that you can avail of tax relief at your marginal rate of tax thus making your premium more cost effective. (Your premium will be reduced by either 20% or 41%)

I am self-employed how does this affect me?

The government will only pay State Illness benefit of €188 per week for employed people. Therefore if you are self-employed you will have to be entirely self-sufficient and it is extremely important that you protect your income with an income protection plan.

Income Protection pays out a regular income (up to 75% of gross income) after a deferred period should you be unable to work due to sickness, accident or disability up to retirement age.

Here at mypremium.ie we can choose from a huge range of Product Providers to tailor the best plan to meet your specific needs.

Flexible Options:

• Range of Deferred Periods: 4, 8, 13, 26 & 52

• Guaranteed Premiums- premium will remain fixed for the whole term of the plan

• Access to Best Doctors- a second medical opinion

• Waiver of premium- do not pay your premium during a claim

• Guaranteed Insurability: Increase your cover by up to 20% of the original amount every three years

• Own Occupation- benefit paid if insured is unable to carry out their normal occupation

• Change of Occupation- life insured is not penalised for changing occupation

• Indexation- premium & cover amount will increase each year

 Is my income protection affected if I change jobs?

If your income protection was paid for by your previous employer as a core benefit, then you should consider taking out a new policy to cover your new circumstances.

Factors which can influence your decision include; amount of cover required, your income, will your new employer pay for it?

What other policies should I consider?

In addition to income protection, you should examine the benefits of the following:

mortgage payment protection insurance>>

accident & sickness plan>>,

medical cash plan>>,

personal accident plan>>

income cash plan>> and

best doctors plan >> .

These are general insurance plans, which are designed to provide cash support when you need it most.

You should explore their benefits when trying to arrange the most affordable way to protect against life's difficulties

You should compare the market when seeking information on income protection.

Our experienced experts can prepare a quotation for you based on comparison of the best policies available, and will help you decide on your best policy.

Protect your family today, don’t delay. Call one of our Financial Advisers on 1890 666 666 for an in-depth consultation.

Or use the quote button 

{KomentoDisable}