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Independent financial advisor dublin – What is Lifestyle Financial Planning?

What is Lifestyle Financial Planning? 

Independent financial advisor dublin

Independent financial advisor dublin

Lifestyle Financial Planning has become popular in the UK over the last number of years, mainly because of the changes brought about by the banning of commission for any investment products. With similar changes being mooted for Ireland shortly, more Financial Advisers will switch to this new model of financial advice.

Before the arrival of Financial Advisers, life insurance and pensions were sold by insurance salespeople, with very little attention paid to the suitability of the product for the end customer. This led to some serious cases of miss-selling and damaged the reputation of the life assurance industry in general.

About 25 years ago, in an attempt to clean up its reputation, the industry introduced the “fact find”.
This document ensured that the insurance salesperson had to obtain a minimum amount of information about the customer before they could sell them any product and that product had to be suitable to their needs in accordance with the facts gathered in the fact find. Although this went some way to improving the process, it didn’t stop the sell at all costs practices that were rife, brought about by the commission only system.

 

pearce financial planning

Lifestyle Financial Planning goes much further than the fact find. As well as gathering all the hard facts about someone’s finances, it also finds out what is important to the client, what type of life the client wishes to achieve in the medium term and after they stop working. Lifestyle Financial Planning will help the client to establish life goals and assist in achieving those goals, as opposed to finding a gap and selling a product to fill that gap.

A Lifestyle Financial Planner should carry out an in depth audit of your current financial situation, then, based on that information, produce a lifelong cash flow forecast. My experience is that this helps the client to understand its importance and empowers them to make the right decisions so as to ensure they can live the life they desire without the fear of running out of money. Some people find that they can actually enjoy a few more luxuries, whilst others may have to take action to improve their situation.

Once all this has been done, recommendations are made as to how best to arrange the client’s finances and investments in order to achieve their goals. This should be done on a fee basis only without charging commission to ensure unbiased advice is given. Once implemented, the service will include regular reviews. These reviews are essential as circumstances will change over time, as will your plans, and it is essential to continuously adapt the plan to any such changes.

 

Are you in need of an independent financial advisor dublin? Why not get in touch with Joe Pearce,

 

You can call him directly at: +353 (1) 298 1008 or email at: enquiries@pearce.ie

For more information on Independent financial advisor dublin, why not contact Joe today?

life insurance ireland

Life Assurance Made Simple - Life Insurance Ireland

life insurance ireland

What Does Life Assurance Do?

Life insurance guarantees that in the event of your death, a lump sum will be payable to your loved ones.

Not sure if you need Life Assurance?

Ask yourself this question: “Will someone in my life suffer financially if I die?”

If the answer is yes, you probably need life insurance.

The correct amount of life assurance can:

Provide money to pay for burial or other final expenses

Ensure your loved ones are able to sustain their current lifestyle and stay in their home

Cover your debts, including your mortgage

Provide an income for your family

Cover the cost of childcare

Cover the cost of education for your children

Can reduce inheritance tax liability

What Are The Different Types Of Life Assurance?

There are many different life insurance products and finding the right product for you depends on your personal and family circumstances, including your debts, the age of your children and your long-term goals for your family.  Most life insurance products fit into two categories – term life and whole of life.

Term Life Assurance

Term life assurance is generally arranged for a set amount of cover for a pre-determined number of years. It can be used to give cover for a loan such as a mortgage which will be paid off over an agreed period. It can also provide income to provide for your children until they reach independence.

Term life assurance only pays a benefit if you die during the specified period of time – After the term expires there’s no guarantee that you will qualify for a new policy – If you do qualify, the premium will probably be higher because of your older age, or it might cost extra if you have had any medical issues in the meantime. It is possible to guarantee the extension of your cover without any medical underwriting by paying a small extra premium. Life Insurance Ireland

Whole of Life Assurance

Whole of life assurance guarantees you cover up to age 99, provided you continue to pay the premiums, which are reviewed on a regular basis. This was a popular product in the 90’s and was sold on the basis that part of the premium was invested which would keep future premiums down.

They did not live up to their promise and in most cases, the investment returns were poor, resulting in the premiums being revised upwards, making it a very expensive form of life assurance.

Pension Term Life Assurance

Pension Term Life Assurance provides your family with a lump sum payment, if you should die before you retire. Under current legislation, tax relief is available at the rate of income tax you pay.

The cover lasts until you reach retirement age, which will normally be your 65th birthday, subject to revenue limits and conditions.

How Do I Buy Life Assurance?

Engage a Financial Broker who will guide you through the process.

A reputable Financial Broker will discuss your circumstances with you and advise you as to how much cover you should have. This will depend on your individual needs and also your available budget. The Financial Broker will then search for the best value cover for you and make his/her recommendations.

An application form will be completed and sent to the life assurance company, who will underwrite the application. Based on medical evidence or the amount of cover required, you might have to attend for a medical.

Upon acceptance, the life assurance company will then issue the policy, giving you peace of mind.