We’re at that time of year again when many Health Insurance customers are poring over their Health Insurance renewal documents. Many will simply renew without really thinking about it to any great extent – often an expensive mistake.

There are a few specific factors to consider this year. First of all, the prices of many health insurance plans are increasing. It’s more important than ever to ensure that you have the right plan to suit your family circumstances and that it is the best value plan available in the market for that level of benefits. On top of this Covid-19 has changed the landscape too in terms of how people are availing of health services – it’s important that you are paying for benefits that you potentially will avail of, and not paying for a plan that offers benefits that really will never be used by you.

Health insurance remains a really important product for families. According to the Health Insurance Authority, there were 2,289,000 people insured with inpatient health insurance plans at the end of June 2020. This represents an increase in the number of insured people of 41,000 over the past 12 months and well up from a low of just over 2 million people in December 2014. The market peaked at almost 2.3 million people at the end of 2008, so the market is approaching that peak again. Based on Central Statistics Office (CSO) population estimates, the percentage of the population with inpatient health insurance plans stands at 46.0% at end June 2020.

More and more people are aware of the potential to find a better deal and are shopping around. Some ring around all of the providers and get quotes themselves. However in this instance, they are only really getting visibility of a relatively small number of the policies available. Other customers are ringing their health insurance adviser, such as Lyons Financial Services. And they get the biggest savings of all, as we know all of the policies on offer in the market. This includes the lesser-advertised policies that may have better benefits or lower premiums.

We know that some people are a bit overwhelmed by the huge choice of different policies with all sorts of features and benefits. As a result, some people reckon it’s easier then to just stay where they are. We don’t see it this way. We know the savings that are there to be gained, and having established ourselves as one of the leading Health Insurance advisors in the Irish market, we know that we will be able to find the right plan for you and your family.

 We pride ourselves on understanding your requirements, making clear recommendations, and helping you to get the best plan for you in place without any fuss. It is our job to understand the ins and outs of all of the different plans. This enables us to make sure you can get the right cover in place.

 We also do this work for companies and other organisations who operate health insurance schemes on behalf of their employees or members. We operate highly efficient salary deduction schemes, which make it easier for employers and employees alike to manage the payment of their health insurance contributions and to claim their tax relief on these payments. Our aim is to provide you with expert advice, find the right plan for you and then quickly get your plan up and running. 

So whether you are new to the Health Insurance market, are looking to renew your existing plan or indeed want to make sure you have the very best plan for your own circumstances, give us a call at Lyons  on 01 8015808 and we’ll make sure you’re on the right track. 

2020 was a year of great uncertainty. Of course Covid-19 dominated the landscape, bringing with it insecurity for some people around both their health and also their economic circumstances. As countries continue to move in and out of various states of lockdown, for many people this is creating a lot of worry about their jobs. For some this is temporary and they can see a relatively swift return to normality. For others their prospects are more bleak, as they are forced to close their business or they see their employers reducing headcount or shutting down altogether.

The start of a new year is a really appropriate time to stress test your finances, particularly in light of the economic challenges that Ireland is currently facing.

If you have a mortgage, your bank will have carried this out when lending you the money – after all, their primary goal is to get their money back! They would have sought clarity in your ability to repay the loan. However they also have security over your home, so if all else fails they still have plenty of leverage to up the pressure on you…

Stress testing of your finances should not just be a once-off exercise carried out by a bank – it makes sense for you to periodically examine your capability to withstand a sudden financial shock.

The place to start is to consider the risks to your finances and the likelihood of them coming under pressure. These can probably be summarised in the three main areas below. For each of them, there is a range of strategies to consider in order to bolster your finances.

Your income security

This can of course be susceptible to a range of shocks, as we are seeing today. Economies can suddenly and swiftly plummet due to a range of factors (a pandemic only being one of them), and as a result companies can end up shutting down. Closer to home, your own business or the company you work for may struggle as a result of changing market dynamics, increased competition or simply poor performance. What’s the likely threat to your income?

To protect against a potential loss of income, you can always look for ways to advance your career and indeed create multiple sources of income. In addition to this, build up an emergency fund that will cover at least 6 months of expenses in case your income disappeared. Failing this, is there another source of cash that you can tap into if needed, such as a benevolent family member?

Retirees should consider their ability to withstand sharp falls in their investments. Should this happen, would you then be forced to sell assets in a depressed market? Talk to us about avoiding this scenario. 

Your spending

Live within your means, and this includes keeping money aside for emergencies. One of the biggest mistakes people make is to live on the very limits of their finances. If something goes wrong then, they are immediately in trouble.

Have a household budget and stick to it. This should include your day-to-day spending and big purchases – holidays, changing the car and home improvements. Wherever possible, these should be funded by savings as opposed to borrowings. Don’t take on debt that might appear well within your means, but will become unsustainable if interest rates rise or you suffer a shock to your income. If you are not paying off your credit card in full each month, it’s time to take action – this is a major alarm bell…

Your health

Your physical and mental health are really important drivers of your financial security too. After all, without these your ability to earn income may be compromised and your expenses may also increase as a result of care costs etc.

The starting point is to live well and stay healthy. Having a good diet, exercising regularly and looking after your mental health are each very important factors in helping you to live a more rewarding life and in building your resilience to deal with the slings and arrows of life and any financial shocks.

However sometimes unfortunately ill-health just visits your door. How will you deal with this? Are generous sick-pay benefits available to you, or do you have sufficient income protection and specified illness cover to deal with these scenarios?

In stress testing your finances, consider all of these areas in turn. Are there specific actions that you can start to take today that will strengthen your ability to deal with an unexpected financial shock? If there is, now is the time to take action and to build your confidence and capability to deal with any unexpected events in the future.

Tax is a necessary evil. If we want to live in a country with access to public services, taxation is the system used to pay for these services. We can (and do!) argue and moan about the different levels of tax payable and whether they are levied fairly. But at the end of the day, the money to be used for public services has to be collected somewhere.

While most people accept that tax must be collected, most people certainly do not want to pay more than their fair share so we’ve set out 5 ways that can help you to reduce your tax burden both this year and in the future. All of these are perfectly legitimate and are not considered aggressive tax practices – they are simply good tax housekeeping that is sometimes ignored.

Claim relief for your medical expenses

It still amazes us how many people let this one slip by… You can claim standard rate relief (20%) for all the medical expenses that you pay for – typically your own, your family’s and in some cases where you pay other people’s expenses. Most medical costs qualify and when you add up all those doctor visits, prescriptions, physio sessions, hospital consultations, x-rays etc., they can amount to a tidy sum. On top of this, some dental procedures such as crowns and gum treatments also qualify. Your claim is reduced by amounts claimed back from health insurers.

The process is so simple. You claim as part of your tax return and you can even go back and claim for the last four years. There might be the cost of a weekend away coming back to you, to help the recovery from all your ails…

Make a pension / AVC contribution

With this one, you need to make a pension contribution payment in order to gain the benefit, but there is a growing awareness of the need to provide for our own retirement needs. The state pension scheme is creaking at the seams and the state retirement age being pushed out is a hot topic currently. We all need to save our futures, and pensions are usually the most effective way to do so.

Pension contributions attract a number of tax benefits,

1. Your contributions qualify for marginal (higher) rate tax relief within certain limits
2. Your pension fund grows free of all taxes
3. You can take a portion of your fund tax-free at retirement, with other tax mitigating strategies being deployed in relation to the balance.

Annual gift exemption

Another one to save tax in the future. When you die and leave wealth behind you, this often results in tax liabilities for your estate beneficiaries. One of the ways to reduce this tax liability is to gift money to your future beneficiaries while you’re still alive. Any person can gift another person up to €3,000 p.a. without a tax liability. So for example, a couple in their later years could each gift €3,000 to their children, sons & daughters-in-law and their grandchildren etc. every year. They don’t have to be directly related. This could significantly reduce the amount eventually to be inherited and could significantly reduce or remove any tax liability.

Be clever with financial protection

Some people unfortunately still think that all life assurance policies and illness benefits are all the same. They are not. Some can be used for specific purposes while attracting tax benefits – for example Section 72 policies that are used to pay an inheritance tax bill are exempt from inheritance tax themselves. Others such as certain life assurance policies and Permanent Health Insurance policies qualify for income tax relief on the premiums.

This area can be quite complex. Give us a call and we’ll simplify it all for you and find the most tax efficient route for you.

And then there’s the rest…

And still there are many more reliefs and exemptions available, some of which may apply to you. So make yourself aware of all of the reliefs available. Whether you’ve kids in college, have spent money renovating your home, are taking a training course or are commuting on public transport or cycling to work, there are potential tax saving opportunities out there for you. A little bit of research or a conversation with us just might help you to reduce that unwelcome tax burden that you are shouldering.