For most people, a mortgage is the biggest and most important outgoing they have every month. Despite this, relatively few make provision in case they are unable to meet their repayments. Mortgage payment protection insurance (MPPI) is a valuable safety net. But for it to be effective, it must be appropriate for the customer’s needs and sold in an informed and responsible manner. Southeast Financial Services can offer payment protection insurance for your mortgage. There are 3 three main options Accident and Sickness Cover What would happen to you and your family if you fell ill or had to take time off work? IMPORTANT STATISTICS Our Accident & Sickness Plan provides you with peace of mind that if you are unable to work, you will still receive a regular income which can help provide for your family’s needs. But what makes the plan particularly special is the additional cash benefits on offer. As well as the crucial Monthly Income Benefit, you will also receive Hospitalisation Benefit, Serious Injury Benefit and Accidental Death Benefit. All of which are designed to provide you with money when it’s needed most. An Income Protection policy is a simple, tax efficient & inexpensive plan that provides you with a source of income if you are unfortunate enough to be out of work and suffer a loss of earnings as a result of a illness, disability, an injury or an accident If you were unable to carry out your normal occupation for a prolonged period due to an illness or injury, could you continue to meet your financial commitments? Who would pay your mortgage repayments, personal loans, medical bills or even your children’s school expenses? You may need income protection if: Usually your benefit payment stops as soon as one of the following happens: Income Protection provides you with a regular income, which is paid to you if you are out of work due to illness or injury. It is designed to replace some of your earned income if you can no longer earn an income yourself. The payment would commence once you have been off work for a certain length of time, known as the “deferred period”. The payment would continue until you have recovered and are fit to return to work or until your chosen retirement age. If you had to give up work due to illness or injury, how would you pay your regular bills? You may also have the additional burden of extra medical costs. Could you continue to pay these bills if you lost your regular income? If the answer is no, you need income protection. You can set the amount that you wish to be insured, however the maximum benefit is 75% of your annual salary less the State Illness benefit (if applicable) which is currently approximately €10,000. (Note that State Illness Benefit is not paid to self-employed people). There are limits on the maximum income level that you can cover. It is important to review your policy regularly to ensure that you are adequately insured and indeed not over insured. In the event of you needing to claim the insurance provider will pay out based on your actual earnings, not the level of cover you have insured for. Class 1 White- collar occupations: no appreciable accident or health risk. These occupations will usually be office based. Examples include accountants, GP, IT consultant, solicitor, administrators etc. Class 2 Class 3 Class 4
We will ensure the product meets the following 4 requirements.
1. The product will be tailored, so you can be confident the cover is right for your needs.
2. It offers variety and choice and can be revised as appropriate to your changing circumstances.
3. It is not linked to a specific lender’s mortgage, meaning cover can be transferred as necessary.
4. You will only pay for the cover you need – and can claim on.
Where would the money come from?
Who would pay for the mortgage and everyday household bills?
You can forget holidays, treats for the children and any new things around the house.
1 you are self-employed
2 you have little or no sick pay from your employer
3 you have no ill-health pension protection.
1 you return to work
2 you reach the set retirement age
3 the insurer’s medical officer, who may check your medical condition from time to time, decides that you are fit to return to work
4 you die.
Additional benefits that you can include in your policy are indexation and escalation.
You can choose to include indexation on your plan. This means that your benefits will increase each year to keep them in line with inflation. Your premium will also increase.
You can also select escalation. This feature means that your income benefit will increase/escalate during a claim. Your premium does not change. You can choose either, or both of these options, or you can choose to have your benefit and premium remain level throughout your plan.
Your occupation is very important as not all occupations are covered; particularly occupations that have a degree of occupational risk, e.g. working with hazardous materials or working in confined spaces. Below is a table that will give you a good idea of what class your occupation falls into but it is not the definitive guide as there are some small differences between the various life companies.
Mainly white – collar and predominantly administrative. Driving may be involved. Examples include quantity surveyor, dentist, sales rep etc.
Skilled occupations, which may involve light manual duties but heavy lifting is rare. Examples include interior painters, foremen, electrical engineers and domestic electricians, nurses etc.
Skilled tradespersons, working on construction sites using light power tools. Examples include carpenters and plumbers.
Income Protection