An Cosantóir

money matters | 21 They may have affected a life cover policy as a smoker and paid into the policy for a number of years. Once they give up cigarettes for twelve consecutive months, they can approach their insurer and now qualify as a non-smoker. Why review whole of life policies? Many of these policies were set up and paid by the poli- cyholder by way of salary deduction. This was ideal for the insurers and convenient for the policyholders. We have seen recently where insurers such as New Ireland have ceased to accept premiums by salary deduction. It is only now that policyholders are realising the real cost and poor value of these policies. Many employees in the CIE Group and members of the Defence Forces subscribed to these policies. Indeed, the excessive cost of these was highlighted recently by numerous callers to the Joe Duffy show on Radio 1. The disadvantages of these policies are numerous. Firstly, they are reviewed every ten years initially, then every five years and in later years every year. At review stage, the policyholder can have the option of maintaining the same level of cover and the premium increases, or maintain- ing the same premium but the level of cover decreases. In some cases, the cost of maintaining the same level of cover has increased by 100%. Secondly, there is often a savings element attached to this cover. The insurers argue the purpose of this fund is to help pay for the huge cost of these policies in later years. It is important to point out that if a claim is made the value in the fund is deducted from the claim amount. For example, a policyholder who has €50,000 life cover and €8,000 in the fund, if he/she makes a claim for life cover, the insurer will deduct the amount in the fund and his/her estate will only receive in this case €42,000. An alternative to this type of policy Eolas is a term policy. This type of policy is never reviewed so the premium never increases, albeit the maximum age at completion is 80. A convertible option can be a very valuable addi- tion to a term policy, as it allows the policyholder the option to convert into a new policy without any medi- cal underwriting. It is imperative for whole of life policyholders to review their policies immediately, as if they contract an illness they may be illeg- ible to affect a term policy. They can also apply for a full encashment of the policy, thus giving them immediate access to the money in the fund. "The Life assurance industry is operating in a "soft" market at present… premiums are being reduced as Life insurance companies compete for business" The amount of Life cover you require changes throughout your lifetime as your circumstances change. It is important to review your cover on a regular basis to ensure you are getting good value. This represents an opportunity to shop around for cover to try and improve on your existing insurers offering. For example, a reduction of €20 per month on a 25 year policy will save you €6,000 over the term. The savings from switching from a whole of life policy to a term policy tend to be greatest. Indeed, in many instances you don't even have to switch insurers as your existing provider may offer you better terms. The process is very simple and it is imperative to contact an independent broker rather than a tied agent, who can only offer you the insurance products from the company where he/she works. Noel O'Grady (BA MBA QFA) is MD of Eolas Finance Ltd and you can contact him at (01) 6190232 or noel.ogrady@ eolasfinance.ie for a free financial review. ...Unrivalled standards in financial services Suite 9, Finance Noel O'Grady BA MBA QFA MANAGING DIRECTOR Eolas Finance Ltd. is regulated by the Financial Regulator Herbert Hall, 16 Herbert Street, Dublin 2 ARE YOU PAYING TOO MUCH FOR... Tel: 01 619 0232 Fax: 01 619 0233 01 624 7258 Mob: 087 224 6343 Email: noel.ogrady@eolasfinance.ie www.eolasfinance.ie � Independent Mortgage Advice � Access to 17 Lenders � Motor/Asset Finance � Pension Advice � Life Assurance � Savings & Investments � Income protection Insurance � Company employee schemes LIFE ASSURANCE? MORTGAGE PROTECTION? PENSIONS? MORTGAGES? CAR FINANCE? HOME INSURANCE? Simply Contact Us Today For Your FREE/No Obligation Financial Consultation Call: Noel O'Grady QFA at 01 6190232 or 087 224 6343 Email: noel.ogrady@eolasfinance.ie Web: www.eolasfinance.ie Eolas Finance Ltd. is a financial services company which offers a complete range of financial services. We are the official financial services providers to employees in Irish Rail, Dublin Bus and Bus Eireann. We have already catered for members of the Defence Forces in McKee, Gormanstown, Cathal Brugha and the Curragh Barracks. We are also the authors of the Money Matters articles published in An Cosantoir magazine. AS AN EXCLUSIVE OFFER TO PDFORRA, we will provide a NO OBLIGATION,FREE FINANCIAL REVIEW to their members. In this instance, we will examine all areas of their finances to ensure they have the most suitable products at the most competitive premiums, which are fully aligned to their requirements. Eolas Finance Ltd., Suite 9, Herbert Hall, 16 Herbert Street, Dublin 2. Eolas Finance Limited is regulated by the Central Bank of Ireland. Eolas Finance Limited is a member of the Professional Insurance Brokers Association (PIBA) Members of the Professional Insurance Brokers Association THE DEFENCE FORCES MAGAZINE

• Cover