Fear of missing out—is more than just a hashtag to millennials. Many Millennials admit that #FOMO drives a lot of their decisions on what they wear, what they do, even what they eat and drink. We live in a world of social influence.
But one area where #FOMO really does you a disservice? No one is afraid of missing out on the benefits of life insurance. And why should you? There are so many other things competing for your money. That said, do you know what you’re missing out on by not having it? Are you making one or more of these mistakes?
Three in four Millennials overestimate the cost of life insurance—sometimes by a factor of 2, 3, or even more! Imagine being able to afford life insurance for the cost of that daily latte, and for less money than your avocado toast habit!
Nothing could be further from the truth, and yet four in 10 Millennials think this is true, according to the same study! Younger candidates have an easier time getting life insurance because they are generally healthier.
In an era where social networking does all things, it’s natural to think that your loved ones can crowdfund their way to solvency after something happens. But life insurance benefits aren’t taxed like GoFundMe proceeds are, and life insurance has a defined, immediate payout that GoFundMe does not. Plus, your loved ones don’t need the stress or the stigma of having to ask others for help.
In fact, one study recently suggested that many Millennials are more concerned about planning their next night out with a significant other than planning for their financial future. But sensible steps now will make for a better future with that significant other long past tomorrow night’s date.
Take a look at your student loans. Were any of them private loans? Who is liable for them—in full, often immediately—if something happens to you? There are other debts you may need to consider as well—anything where you have a co-signer.
Millennials are getting married, having families! Young families have enough to worry about with daycare costs and increased medical costs, right? Well, imagine what your young family would do about those bills if something happened to you. Could your spouse pay the rent or mortgage without your income?
One recent college grad recently confessed to me that he hadn’t elected into any of his employee benefits at the dream job he got in his field because “my dad takes care of that.” He was shocked to learn what he was missing out on!
Yes, adulting *is* hard, but a sound financial plan that includes retirement and insurance coverage (health, life, and disability insurance are all part of that plan) goes a long way to making sure that you don’t look back on your younger years and think, “Oh, why didn’t I start this sooner?” Plus, you don’t have to do it alone—that’s what insurance agents are for. They will sit down with you at no cost, or obligation, to discuss what you need and how to get coverage to fit your budget. But then, signing up—that IS on you. Don’t miss out.
For more myths read here.
Opinions.ie, The Research Agency conducted a survey based on 300 respondents nationally. It is so easy and affordable to take out life insurance providing peace of mind for the future.
Here are some of the findings.
At Oomph.ie, we can tailor the right policy specifically for you and your family. Oomph.ie was set up to make purchasing life assurance an easy and convenient experience and yet attain the most competitive prices available from the main six providers of life assurance in Ireland. We only use reputable, main brand life assurance companies in Ireland and can usually attain discounted or price promise prices from them. If you have any questions about Life Insurance or would like to know more about the right policy for you, chat with one of our team members at Oomph today.
Depending on the policy you purchase, you could be covered for different lengths. The term could be anywhere between one year and the rest of your life by life insurance. Depending on how long you’ve had you life insurance coverage, it might no longer be enough.
As your life changes, your insurance needs change with it. Depending on events that have happened and how your mind-set has evolved since you first bought a policy, it may be a good idea to make sure you have enough coverage. Here are some signs to watch out for.
Research has found, it will cost you €250,000 to raise a child from birth to college in Ireland. It is also estimated that the cost of education for a child is €70,000.
If you’ve recently had an addition to your family, your spouse or partner may not be able to afford those costs if something were to happen to you. That’s especially the case if you’re the financial breadwinner.
Two of the top five reasons people get life insurance are to cover mortgage debt and to pay for home expenses.
You do not want your family to be kicked out of your home if they can not pay this. When taking out a mortgage you need to consider what will happen if someone becomes ill, dies or unemployment occurs. Mortgage protection is put in place and designed to pay off your mortgage in such an event as death. There are difference kinds of mortgage protection so make sure you know the difference. It is very important that this is reviewed often especially when your circumstances change and to make sure you are on the right policy to suit your needs.
Two-thirds of people who own life insurance bought it to replace lost income if they were to pass away. If you’ve recently gotten a significant raise or your income has increased steadily since you last bought insurance, check to make sure your insurance coverage is still enough to replace it.
While income increases often come with lifestyle changes, it’s also possible to get a lifestyle upgrade. This is after you’ve paid off debt or improved your cash flow in some other way. If you notice that you’ve been spending more per month than you were a year or two ago, your current life insurance policy may leave a gap between its coverage and your loved ones’ needs.
Another top-five reason people get life insurance is to transfer wealth or leave an inheritance. As you get older, you may start thinking more about what kind of legacy you want to leave behind.
If you’ve been focused on other life insurance needs, it might be time to take another look to see if you would owe any taxes upon your death or what other expenses your estate might incur. You may also consider whether you want to leave any money behind for your children. In most cases, you won’t be able to increase the coverage on your current policy. Instead, you’ll buy a new one to supplement the first.
Whatever you do, take the time every once in a while to determine whether your life insurance coverage is still enough to take care of the people you love.
If you want to review your life insurance policy we are always here to give you free advice and provide you with our expert financial and life insurance advice for your future and your family. Contact us today for a chat.
Cancer is the leading cause of death and illness in Ireland as Irish Life pays out €187.8 million in claims during 2017
2,582 claims paid across Life Insurance, Specified Illness and Terminal Illness Cover
Cancer continues to be the main cause of death and illness in Ireland according to Irish Life, Ireland’s leading life insurer*. Irish Life today published its annual claims report for its retail business, confirming that it paid out €187.8 million to customers and their families affected by illness and death during 2017. The report provides a unique insight into the health of the nation, and includes an overview of the illnesses and conditions that led to payments for 2,582 Life Insurance, Specified Illness Cover and Terminal Illness claims in 2017.
The claims report highlights that Irish Life paid €129.7 million for 1,689 Life Insurance claims, €53.7 million for 853 Specified Illness Cover claims, and a further €4.4 million for 40 Terminal Illness claims. These figures represent an increase of 10% overall in the value of claims paid out to Irish Life customers compared to 2016 figures. The average payment was €76,786 for Life Insurance claims, €62,992 for Specified Illness Cover claims, and €109,534 for Terminal Illness claims, although there was a wide variation in the size of claims settled.
Cancer was once again the main cause of both Life Insurance (42%) and Specified Illness claims (62%), followed by heart-related conditions which accounted for 10% of deaths and 20% of Specified Illness claims. Overall, breast cancer was the main type of cancer for Specified Illness claimants.
Martin Duffy, Head of Underwriting & Protection Claims, Irish Life Retail, commented on the claims report; “We paid an average of €3.6 million a week last year to people and families affected by illness and death. In fact, we paid 95% of the life insurance and specified illness claims we received last year. And yet we’ve seen from a recent study by Coyne Research** that people in Ireland think that only half (51%) of life insurance claims overall are paid. So clearly, we need to make more people aware of the real benefits of life and specified Illness cover, as it can be a lifeline for you and your family in times of difficulty.
“This is further proven by the fact that over a third of our Specified Illness claims were paid to people under 50 years of age. Those payments would have helped to ease the financial burden for those people and their families at a difficult time. However, it’s a worry that the Coyne Research study also found that less than half of women in Ireland (just 45%) have some form of life insurance, serious illness cover or income protection, compared to almost 2 in every 3 men (63%). And unfortunately, this lack of financial protection among women in particular is also reflected in our 2017 claims data where women made up just 38% of our Life Insurance claims”, he said.
Gender Variations: The Irish Life claims report showed notable gender variations in relation to life insurance, specified illness and terminal illness claims for 2017. Almost two thirds of Life Insurance claims were for men (60%) compared to just 35% for women. In relation to Specified Illness claims, over half (53%) of claims were paid to men and 45% to women. The report also revealed that women are claiming at an earlier age than men; the average age for female life claims was 64 years, compared to 67 years for men, and for specified illness claims the average age for female claimants was just 51 years, compared to 55 years of age for male claims.
Life Insurance claims: The claims report highlighted that the number of people dying from cancer in Ireland remains high, as over half of women (54%) and 38% of men died from cancer in 2017. Heart-related conditions also feature as a main cause of death, with men five times more likely to die from a heart condition when compared to women.
Within the Life Insurance category, accidental deaths accounted for 7% of all claims, representing a total payment of €17.1 million. The average age for accidental death claims was just 49 years, the lowest average age on record, with more men (63%) dying from accidental death causes than women (28%). A quarter of all Life Insurance claims for those under 40 years were as a result of an accident, making it the second biggest cause of claims for this age-group again this year. €1m in payments was made to families of those who died in road traffic accidents in 2017.
Specified Illness claims: The report also highlighted that cancer was the main cause for Specified Illness claims for both men (49%) and women (77%). Prostate cancer was the leading cancer claim for men (19%), followed by lung cancer and colon cancer. Breast cancer was the main type of cancer claim for women (39%), followed by colon cancer and ovarian cancer.
Irish Life paid over 95% of all Life Insurance and Specified Illness claims received in 2017, paying out over €3.6 million a week on average. Most of the small number of claims it declined were due to non-disclosure of medical information or the illnesses not being covered. The company also confirmed that almost 2 in every 3, Specified Illness claims were paid within five weeks of Irish Life receiving the completed claim forms.
Examples of claims payments made by Irish Life in 2017:
• The largest individual Life Insurance claim of €5,075,000 was paid out to the family of a claimant who died of cancer
• €146,000 was paid to the family of a claimant in their 40s who died of cancer shortly after starting a life insurance policy
• An early Specified Illness claim was paid to a claimant in their 30s who had a cancer diagnosis just a few weeks after starting their cover and received a payment of €24,000
*Based on market share (2017)
**Research carried out by Coyne Research. 1,000 adults aged 18+ were interviewed online between 6th and 12th December 2017.
Then it happens and you have to make that call to make the claim. It’s only really then that you are glad of the protection plan you have in place.
Life Cover pays a lump sum to your family of beneficiaries if you die. It is the simplest form of protection available and it is usually taken out to provide for your family or to pay off your mortgage in the event of death.
In 2017, Zurich paid €39.6 million in death claims with an average payout of approximately €94,000.
Here are some really interesting facts from Zurich relating to claims in 2017.
At Zurich, 40% of claims were for people aged 60 or less. Cancer is the principle cause of death and it accounted for nearly half of Zurich death claims in 2017. Cancer and heart related deaths accounted for 61% of all death claims in 2017.