Renters are estimated to make up to 20% of the residential housing market currently in Ireland. The numbers are rising due to rising property prices and restrictive mortgage rules. The consequence is that long term renting is a reality with many couples settling down and raising families in their rented homes. A significant part of these are non married cohabiting couples. The major social concern is the lack of personal protection that most renters have in place due primarily to the fact that they were never forced into focusing on the potential gap that may come about in the event of their illness or death.
Many of these couples are relying on two incomes to make ends meet. But what happens if one half of the couple lost all or part of their income through illness, disability or death? The one great protection available to a married couple from the state in the form of the widows’ pension is not available to non married cohabiting couples. In the event of the death of one half of the couple, without personal protection, the survivor is left with the uphill task of trying to provide for the family with sometimes less than half the income.
If you are married and have a mortgage, in the event of death of one half, you could have at a minimum your mortgage paid through your mortgage protection policy and the survivor will receive the state widows’ pension irrespective of means. However, if you are non married co-habiting and renting, you are automatically entitled to nothing.
If you are 29 years old and a non smoker, level term life insurance cover of €150,000 for a 25 year term is currently available to you for a limited period only from as little as €9.64 to €11.34 per month. Life insurance packages may include additional benefits such as early payment in the event of you being diagnosed with a terminal illness and life cover for your children.
Further protection can be taken through serious illness policies that give you cover in the event of you being diagnosed with one of the many listed serious illnesses. If you are 29 years old and a non smoker, level term serious illness insurance cover of €50,000 for a 25 year term is currently available to you for a limited period only from as little as €13.53 to €15.03 per month.
Given that the cost of life insurance was never as cheap, it is an obvious time to contact your financial adviser to explore the idea of plugging this serious gap for your family. You can talk to us at O’Leary Financial Management at 053 94 11400 or 086 2704743.