With many people facing new financial challenges, Bank of Ireland Life, today 17th February 2009, is urging families everywhere to consider what sort of financial cover they have in place should they become seriously ill.
Many of us will instinctively rely on our savings and investments or the value in our property as our financial cushion should one partner become seriously ill, but typically these are not enough.
According to Bank of Ireland Life, a couple can secure basic life cover(1) for just €0.74 cent a day. More comprehensive cover providing for death and specified critical illness benefit can be put in place for just over €1 extra per day, or a total cost(2) of €1.76 a day. By spending this small amount on protection cover people can provide for the financial needs of their families in the event of serious illness or death.
The issue of financially protecting both ourselves and our loved ones has never been so important than in the current economic climate. According to research, just 20%(3) of adults have critical illness cover, while just 40%(4) have some form of life assurance cover.
For those without any form of financial protection in place(5) :
- 62% said they would cash-in existing savings and investments if either they or their partner could not work due to critical illness or death – equity savings & investments may now be worth substantially less than they were 12-months ago due to the recent stockmarket volatility
- 36% said they had no idea how they would cope financially – emphasising the importance of putting the right plans in place now before it is too late
- 33% said that the healthy partner would have to work two jobs – with many companies downsizing their workforce a second job may not be available
- 27% said they would have to sell their home or downsize to cope – the property market has slowed considerably with many homes on the market for a year or more
In fact, Bank of Ireland Life’s analysis of its 2008 critical illness and death benefit claims(6) highlights just how young many victims are:
- 50% of all critical illness claims were made by consumers aged between 20 – 49 years
- 76% of all critical illness female claims were made by those aged between 20 – 49 years Almost 7 in 10 critical illness claims (67%) were made for Cancer related illnesses
- Claims for Heart-related illnesses accounted for a quarter of all critical illness claims
- 87% of all female critical illness claims were for Cancer-related illnesses
- 40% of all male critical illness claims were for Heart-related illnesses
- The average critical illness claim paid was €81,337
- Bank of Ireland Life paid out over €22.2 million in critical illness claims for 2008
- 48% of all death benefit claims were paid to those aged 59 or under
- 44% of all death benefit claims were as a result of Cancer
- The average death benefit claim paid was €60,931
- Bank of Ireland Life paid out over €49.2 million in death benefit claims for 2008
Commenting on the findings, Brian Grimes, Head of Protection Business, Bank of Ireland Life said; “In the event of death or serious illness of either of the breadwinners, households typically suffer a large decrease in income. Protection products allow people to prepare for such events by providing significant sums to supplement their finances. If anything, recent events have made protection plans more important for people as their assets may have fallen in value.
“With basic protection available for as little as €0.74 a day, looking out for your loved ones financial future may be more affordable than people think. Why not meet with a professional financial adviser available in every Bank of Ireland branch, to discuss the protection option that will suit you.”
Bank of Ireland Life is one of Ireland’s leading providers of life assurance and critical illness cover. In 2008, the life company(6) paid out over €71 million in death and critical illness claims to 1,080 customers.
- Annual premium of EUR271.71 for dual term life cover of EUR200,000 based on a male and female life aged 30 next birthday, non-smoker, for 20 years and accepted at ordinary rates. Figures correct as at 3rd February 2009.
- Annual premium of EUR646.02 for dual term life cover of EUR200,000 and EUR100,000 accelerated specified critical illness cover based on a male and female life aged 30 next birthday, non-smoker, for 20 years and accepted at ordinary rates. Figures correct as at 3rd February 2009.
- Bank of Ireland Life Market Research, 2004
- Financial Regulator Survey 2008
- Bank of Ireland Life Market Research, 2007
- Bank of Ireland Life & New Ireland Assurance claim statistics 2008
For further information contact:
Public Relations Manager
Bank of Ireland Life
Tel: 01 617 2586
Mob: 086 856 2929
Group Consumer Communications Manager
Bank of Ireland
Tel: 01 604 3750
Mob: 087 226 9324
Notes to Editors:
- In 2008, the single biggest specified illness payment in respect of a female paid by Bank of Ireland Life was to a 41-year-old female who received over €561,000 for a skin cancer claim. The single biggest specified illness payment in respect of a male was to a 50-year-old male who received over €510,000 for a heart-related illness claim.
- In 2008, the single biggest death benefit payment in respect of a female paid by Bank of Ireland Life was on foot of the death of a 55-year-old female client with a claim of over €1,008,000 for lung cancer. The single biggest death benefit payment in respect of a male was on foot of the death of a 43-year-old male client with a claim of over €726,000 for a cancer-related illness.
- Some life cover and critical illness policies may allow you to include additional benefits to your policy such as: (subject to terms & conditions)
- Absence from Work benefit – a weekly income is paid out for each week you are unable to work due to an illness or accident (after an initial 4 week period)
- 82% of all Absence From Work benefit claims in 2008 were made by consumers aged between 20 – 40 years, with an average claim amount of €1,604
- Hospital Cash benefit – provides an income for every day you spend in hospital (as long as the stay is at least 3 days)
- 61% of all Hospital Cash benefit claims in 2008 were made by consumers aged between 20 – 40 years, with an average claim amount of €901
- Broken Bones benefit – a lump sum is paid if you suffer a named injury as a result of an accident
- 80% of all Broken Bones benefit claims in 2008 were made by consumers aged between 20 – 40 years, with an average claim amount of €1,447
- Specified critical illness benefit pays a lump sum benefit upon the diagnosis of any one of 28 listed illnesses covered by Bank of Ireland Life.
- All benefits are subject to underwriting and acceptance by the insurance company. It is important to note that terms and conditions and certain exclusions apply. Before admitting a claim certain requirements need to be fulfilled.
New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Financial Regulator and is a member of the Bank of Ireland Group.