Wednesday 21 February 2018

Make Me Richer: a guide to cover in case of illness

Serious illness cover

Illness cover is crucial
Illness cover is crucial
Sarah Stack

Sarah Stack

Nobody wants to be sick. Even the slightest touch of man flu is enough to make the most hardened of us take to the bed. But what if we got really ill?

SERIOUS ILLNESS COVER

This pays out a tax-free lump sum in the event that you contract one of the defined illnesses covered under the plan, which usually includes certain types of malignant cancers, heart attack, stroke, and multiple sclerosis. What would a couple in their mid-30s fork out each month? They were looking for €100,000 serious illness cover on a joint life convertible basis over 20 years with no indexation of benefits or premiums.

Best: €55.52 Low.ie (via Friends First)

Avoid €67.27 Zurich Life

Save: €2,820 over the term of the policy.

www.low.ie, 1890 300 388

INCOME PROTECTION

Another way to make sure you have regular income to pay your bills if you are out of work due to illness or injury is income protection.

It is sold on the back on some of those cheery statistics that suggest a 30-year-old is more likely to be off work due to an illness or injury for a long period, than to die before the age of 65.

The policy is designed to replace some of the money you earn each month, but payments don't kick in until you are off work for a certain length of time known as the deferred period – which in this case is 13 weeks. This 39-year-old white-collar worker does not smoke, will have income benefit of €33,750, and expects to retire at 60.

Best: €71.78 Aviva, via Low.ie

Avoid: €98.07 Irish Life

Save: €6,467.34 over the term of the policy

www.low.ie, 1890 300 388

MIDDLE-AGED MOTOR COVER

It's tricky getting car insurance at a decent price, and even more difficult if you've racked up a few points on your licence. We priced up cover for a 52-year-old man from Kildare who was unlucky enough to get two points for speeding in 2012. He drives a 2013 Hyundai Sante Fe worth €35,000 and has an excess of €300.

Best: €454 Allianz

Avoid: €1,048 Wrightway

Save: €594

www.allianz.ie, 1890 484848

YOUNG LADY DRIVERS

Young women also face forking out a bob or two for a policy. Car insurance for a 22-year-old woman from Limerick city could cost as much as a cheap run-around. She drives a 2011 Citroen C3 1.4 worth €9,000. She also has three years claim free and €300 excess.

Best: €856.00 Allianz

Avoid: €1,085.00 Zurich

Save: €229.00

www.allianz.ie, 1890 484848

HOME INSURANCE

This week we priced up cover for a property in Kells, Co Meath. The house is valued at €200,000, and belongs to two 45-year-olds who have not made a claim in the past. But their home has no alarm. The policy includes buildings cover of €140,000, contents cover of €40,000, accidental damage and €5,000 unspecified items cover. Excess €300.

Best: €200 Chrome Insurance

Avoid: €645.32 Axa

Save: €445.32

www.chromeinsurance.ie, 1890 247663

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