Why do I need Life & Illness Insurance?
We choose to work hard, so as to provide the best we can for ourselves and our families. However sometimes life throws the unexpected at us, such as a bereavement or a serious illness, which can have a devastating effect on a family’s finances.
Key questions we must all ask ourselves include:
- How would my family pay off our mortgage in the event of the death / serious illness of a main earner?
- How would I cope financially if I lost my income due to critical or serious illness?
- How would I cope financially in the event of the death or critical illness of my partner (whether working or a homemaker)?
Many of us have not sat down and closely inspected the existing level of life or illness insurance cover we have in place to protect our family, nor realise how closely intertwined our health and finances are. To protect your family against the financial loss that would occur due to a spouse / partner bereavement, you would need a lump sum payout of more than €200,000* to replace every €1,000 in lost monthly income
- Macmillian Cancer Support (2006) stated that 75% of people living with cancer said that their diagnosis had caused financial problems.
- The Irish Heart Foundation (2007) said that about 30,000 people have a residual disability from stroke, with up to 50% requiring assistance with daily living.
*Source Ark
We all know it can be expensive, if not impossible to insure our house after it has been flooded, or our car after an accident. For similar reasons, it is important that we take financial steps now, to insure ourselves and our families against bereavement or critical illness, while we have the ability and means to do so.
AIB has a team of experienced Financial Advisers throughout