Consumer Question


Published  30 September 2019
   4 min read

I am 42 years old and we are two months away from having our fourth child. My wife has taken the decision not to go back to work for a few years. Aside from the family aspect, it's not worthwhile financially when you factor in the cost of childcare. We have standard mortgage protection as necessitated by my lender, with another 20 years left on our mortgage. Would it be wise for me to look at boosting my insurance cover with some income protection? I have taken a cursory look at what's out there and it seems expensive.

Commenting on the above question, Sara Murphy, marketing lead at Royal London, said:

"Congratulations on your expanding family. The birth of a child is a regular trigger for evaluating one’s financial wellbeing, so you are in good company.

"Mortgage Protection is a great and practical product for peace of mind as your mortgage can be cleared if you were to pass away.

"Income Protection meanwhile is designed to pay you a monthly amount, linked to your salary, if you were unable to work due to an accident or illness for a sustained period. It can be more expensive compared to a mortgage protection policy, for instance, as it does not just pay out one lump sum amount, rather it pays out a monthly amount and continues to pay out until you are either fit to return to work or you reach your retirement age.

"There are ways to control the cost however, such as linking the time for the claim payments to start with any sick-pay you may be entitled to from your employer. For instance, you may not need a replacement income after four weeks of illness as your job may still pay you but after 26 weeks if that were to end, then you’d need this policy to step in.

"I’d recommend contacting a Financial Broker as they can give you a personalised quote based on your specific circumstances and occupation.  

"Another option could be specified serious illness cover. This would pay out a lump sum if you were to become seriously ill with a defined illness in the future. As a guide, €100,000 of cover would be around €65 a month. But again, a Financial Broker can provide a personalised quote and recommendation."

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This questions was published in the Irish Independent newspaper, available to read here.