FAQ's
FREQUENTLY ASKED QUESTIONS
Q. How much life cover should I have?
A. There are many factors involved in calculating the appropriate amount of life cover that an individual should have. Generally, it should be based on the financial loss that would be suffered by those that are financially dependant on you and also the length of time that this loss is likely to be suffered. Affordability of premiums is also an important factor. At DLS Capital Management Ltd., We carry out “Survivor Needs Analysis” for our clients, which demonstrates the life cover requirement a client may have in order to support his/her dependants should they die prematurely.
Q. Why would I need Serious Illness Cover?
A. This is a type of life assurance policy that pays out a lump sum if you are diagnosed as having a serious illness covered by the policy, such as cancer, stroke or heart attack. It is also known as critical illness insurance. An inividual may want to consider taking out serious illness cover if they have a mortgage, personal loans or other substantial debts that they would still have to pay if they became seriously ill and possibly unable to earn an income for a long period of time.
Q. Why would I need to take out Income Protection?
A. An Income Protection policy provides an individual with an income should they be unable to work at their own, or any other occupation which they are suited to or trained for, due to sickness or disability. Income Protection policies cover all types of sickness and disability – the important factor is that you are unable to work and part of your income is replaced until you are fit to return to work. Typically, the maximum benefit is 75% of your salary less any social welfare payments that you may receive. Each Income Protection Insurance policy includes a “deferred period”. You must be off work because of illness for longer than the deferred period before you can receive an income under the Income Protection policy. The deferred period is usually 13, 26 or 52 weeks.
Q. What is the difference between Income Protection and Serious Illness?
A. Serious Illness Cover and Income Protection are very different in terms of method of payout, tax relief and underwriting requirements. Serious Illness policies only cover a specified number of illness where as Income Protection covers any illness, injury, accident or disability that prevents you from working. Serious Illness pays a once off tax-free lump sum and your Income Protection Policy pays a regular income until you are able to return to work or until the end of the policy term.You can only claim once with a Serious Illness Policy, however you can claim as many times as is necessary on an Income Protection Policy.
Individuals may have a requirement for both Serious Illness Cover and Income Protection depending on their circumstances.
Q. Will I qualify for a mortgage?
A. These days, while there are many different factors that decide if someone qualifies for a mortgage, the different lenders take varying approaches to these factors. How much you can borrow is subject to some fairly strict guidelines imposed on lenders by the Financial Regulator. At DLS Capital Management Ltd., we have agencies with a number of Financial Institutions and we are happy to discuss your requirements with you
Q. When should I start contribtuing to a pension?
A. A pension is actually one of the most tax-efficient ways to save money. Good financial planning really can't begin too early, particularly if you would like to retire before age 65. The earlier you start contributing to your pension, the bigger the retirement fund you build up between your regular contributions and the investment growth achieved by the fund. However, in the current climate, affordability is an important factor, so a premium should be chosen that is "extremely comfortable" to pay out on a regular basis.
Q. Is now a good time to invest in equities?
A. Any investment decision should be based on your attitude to risk and your investment time horizon. Every investor should also have a level of diversification within their investment portfolio so the decision as to whether or not to invest in equities needs to take into account all of these factors. At DLS Capital Management Ltd., these factors are always considered before any investment recommendation is made. We also have an independent investment analyst who advises clients on the most appropriate investment for their circumstances.
If you would like to discuss any of the issues above in more detail, or if you have any other financial queries, please contact us directly.