Family Protection Ireland

Protecting what matters most – your family’s financial future

Most families in Ireland are underinsured, underplanned, and one unexpected event away from serious financial difficulty. A mortgage protection policy covers the bank, not your family. Many families who do have additional life cover took it out for a round-figure amount. A round figure life assurance policy may give you some comfort but it almost certainly doesn’t reflect what your family would actually need if the worst were to happen, and the majority of working adults in Ireland have no income protection at all.

The financial implications of death or long term illness of an earner are significant and, unless you are a smoker or have health issues, the cost of insuring against them is relatively modest.

At Highfield Financial Planning we recognise that even the best financial plan could be derailed by the death or illness of an earner.

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Do You Have Enough Life Cover?

This is one of the most important questions a family can ask, and the answer is almost always no.

The purpose of life assurance is to replace the income that would be lost if an earner died prematurely – not just to clear the mortgage. A family with two children, a mortgage, and a combined income of €180,000 needs to think about what the deficit in the annual budget would be in the event of the death of an earner. Most families, at a minimum want to plug that gap until their youngest child completes their third level education. A properly calculated life cover need is almost always significantly higher than people expect.

We calculate your actual cover need based on your particular circumstances and your objectives. We then search the market to find the most appropriate and cost-effective cover for your situation.

Income Protection – the Cover Most People Don’t Have

If you were unable to work long term due to illness or injury, how long could your family maintain its current standard of living? For most people, the honest answer is not very long.

Income protection insurance pays a regular income – typically up to 75% of your salary less the State illness benefit – if you are unable to work due to illness or injury. It continues to pay until you either return to work or reach your chosen retirement age, whichever comes first. It is the single most important protection product for most working adults, and it is consistently the most underused.

The cost of income protection is also tax-deductible at your marginal rate of income tax, which significantly reduces the net cost for higher earners.

Serious Illness Cover – a Lump Sum When You Need it Most

A serious illness diagnosis – cancer, heart attack, stroke – changes everything, often long before it affects your ability to work. The financial impact of a serious illness can be significant even if you make a full recovery: time off work, treatment costs, home adaptations, or simply the need to reduce your hours.

Serious illness cover pays a tax-free lump sum on the diagnosis of a specified condition which is covered under the policy. It is separate from income protection and serves a different purpose – providing capital rather than income at a point when you are likely to need it most. The underlying objective is to give you the ability to take an extended break from your employment, to give you the best chance of beating the illness and hopefully recovering back to full health.

How We Are Different

Financial Planning for Families – Beyond Protection

Protection is the foundation, but family financial planning covers much more. At Highfield we help families think through:

• Pension planning for both partners – many couples have a significant imbalance in pension provision, often because one partner took time out of the workforce or works part-time. Addressing this early makes a significant difference to retirement outcomes.
• Education funding – the cost of putting children through secondary and third level education in Ireland is substantial. We can model the monthly saving required to meet those costs and build it into your broader financial plan.
• Estate planning – making sure your assets pass to the people you intend, in the most tax-efficient way possible, is an important part of any family financial plan. We work alongside your solicitor to ensure your financial arrangements and your Will are aligned.
• Cashflow modelling – using Voyant software we can map your projected income, expenditure, assets and liabilities across your lifetime and show you whether you are on track to achieve your objectives. If the projection shows a gap, we can show you exactly what actions would close it.
• Specific objectives personal to you – if you want it to happen in the future and it has a cost, tell us about it and we can help you to plan to fund it in the most efficient way possible.

Why Choose Highfield Financial Planning?

Eoghan Gavigan CFP® QFA is a Certified Financial Planner with over 29 years’ experience in banking and financial services. The CFP designation is the world’s most respected financial planning qualification and is held by fewer than 1,000 advisers in Ireland.

We work primarily with families across Dublin, Meath, Kildare and Wicklow, but can we facilitate clients nationwide. All initial consultations which are done over Zoom are free and carry no obligation.

Frequently Asked Questions About Family Protection

How much life cover do I need in Ireland?

The right amount of life cover depends on your income and very importantly how much of that is attributable to each parent, your living expenses including debt repayments, the number and ages of your dependants  and your retirement planning provision. People sometimes apply a rule of thumb but this doesn’t work for a need with this many moving parts. Properly calculated cover – based on your actual circumstances – is always more accurate and often results in a significantly different figure.

What is the difference between life assurance and mortgage protection?

Mortgage protection is a decreasing-term policy designed specifically to repay your mortgage if you die during the term. It protects the lender, not your family’s standard of living. Life assurance pays a lump sum regardless of your mortgage balance, giving your family the financial resources to maintain their lifestyle, fund their education, or clear debts as they choose. Most families need both.

Is income protection insurance worth it in Ireland?

For most working adults, income protection is the single most important protection product available. It replaces up to 75% of your income (less State illness benefit) if you are unable to work due to illness or injury, and continues to pay until you return to work or reach your chosen retirement age. The premiums are tax-deductible at your marginal rate, which significantly reduces the net cost.

What is serious illness cover and how does it differ from income protection?

Serious illness cover pays a tax-free lump sum on diagnosis of a specified condition which is covered under the policy such as cancer, heart attack or stroke as well as a range of other illnesses. Income protection pays a regular monthly income if you are unable to work. They serve different purposes and ideally complement each other – the lump sum from serious illness cover gives you the freedom to take time off work to recover, while income protection ensures your regular income continues.

How can a financial planner help my family?

A financial planner looks at your complete financial picture – protection, pensions, investments, tax, estate planning and cashflow – and builds a joined-up strategy to help you achieve your objectives. Rather than selling individual products, we identify the gaps in your current arrangements and recommend the actions that will make the most difference to your family’s financial security and long-term wellbeing.

What does family financial planning cost?

We offer a free initial video consultation with no obligation. Our fees depend on the scope of work involved and are agreed with you in advance before any work begins.