Q. How much life cover should I have?

A. There are many factors that are relevant in calculating the correct amount of life cover that anyone should have. In basic terms, it should be based on the financial loss that would be suffered by those left behind (that are financially dependant on you) and also the length of time that this loss is likely to be suffered. For example, someone with 2 children aged 15 and 16, may not need as much cover as someone with children age 3 and 4, as the older children would be expected to be independent sooner. Affordability of premiums is also an important factor. At Financial Companion, we will help you to understand how different types and levels of cover will be appropriate for you.


Q. I have VHI or similar health insurance so why would I need serious illness cover?

A. Health insurance can be of great benefit to people when they have to undergo hospital treatment or tests. However, the difference with Serious Illness Cover is that it pays out a tax-free lump sum on diagnosis of one of the specified illnesses covered. It is not dependant on how long you are in hospital or whether you are off work, it pays out the lump sum irrelevant of these factors. So if someone has €200,000 serious illness cover in force and they are diagnosed as having had a heart attack, a stroke, cancer or one of the many other specified illnesses, then they receive a €200,000 payment, tax-free. To find out the most appropriate type and level of Serious Illness Cover for you and your family, contact Financial Companion for a no-obligation quote.


Q. Will I qualify for a mortgage?

A. These days, not only are there many different factors that decide if someone qualifies for a mortgage but the different lenders take varying approaches to the topic as well. On top of that, the lenders alter their lending criteria from time to time; so keeping current with the lender's offerings is crucial. At Financial Companion, we will analyse your up to date borrowing potential and explain the different offerings from the relevant lenders.


Q. What age should someone start a pension?

A. It can be very difficult explaining to a 20 year old the importance of thinking about retirement planning. It is far more difficult explaining to a 40 year old how much they need to contribute to aim for a reasonable level of income in retirement, having not done so for the previous 20 years! The fact remains, the earlier you start a pension - the bigger your retirement income is likely to be. However, affordability is an important factor, so a premium should be chosen that is "extremely comfortable" to pay out on a regular basis. It is worth noting that currently, there are some very generous tax advantages in contributing to a pension. Good financial planning will establish where in your list of priorities retirement planning is at any given life stage.


Q. I updated my various plans and policies just 2 or 3 years ago, is there any need to review our situation?

A. It is widely accepted as good advice to review your financial planning needs either annually or in the event of a major life event (such as marriage, having a baby, moving home, etc.) Even if there is no need to alter anything that you may have in place, taking the time, just once per year, is a small price to pay for peace of mind. You could even find that you may be able to save money!! Contact Financial Companion to arrange a convenient appointment to have a financial review without cost or obligation.


Q. Our solicitor has advised us to speak to a Financial Consultant or Advisor as we are getting separated/divorced, what aspects would this be for?

A. As difficult as separation and divorce can be, it is still important to understand some of the various financial impacts that can occur. For example, one party may be accepting being "bought out" of the family home without knowing whether they would qualify for a mortgage these days or not. There could be a demand for a life policy to be put in place during an agreed period of maintenance but knowing the cost of such a policy would be important (not to mention whether someone may be even acceptable for cover based on their medical history.) At Financial Companion, these factors and others that regularly come up during such times can be discussed and explained. Without answers to some of these important questions, it would be like trying to complete a jigsaw with many of the pieces missing, there would never be a complete picture.