Why bother shopping around for life insurance?

You, like many before you, more than likely took out life insurance in the bank when you applied for a mortgage. And why not I hear you ask. Sure isn’t life insurance or mortgage protection the same thing no matter where you get it?

You can probably clearly tell from the intended tone of my opening comment that I am about to tell the reasons why it’s not the same wherever you look. You probably knew that already and felt, well, it’s here now, it’s right in front of me, I need it so let’s sign it and we can review it later. Its place forever more firmly located at the end of your long finger never again to be discussed or consulted.

Fear not, you are the rule not the exception.

But what you might actually be surprised at is how very different a simple product like mortgage protection can actually be from one provider to the next. An important observation to make at this point is that if you did take out mortgage protection or life insurance or serious illness cover from the bank, you were offered the choice of 1 provider only. Every single bank in Ireland acts a tied agent to only 1 insurer. My role as an adviser is to play an advanced game of “spot the difference” between providers and find the best possible plan, determined by both benefits and price available in Ireland today for each client and their family depending on their individual circumstances. Plug over.

Now blogs are meant to be short and this could take a lot of paragraphs to explain in any sort of details so let me give you a few examples.

If cheapest price is your thing, Aviva, Royal London, and Zurich are currently offering 15% off the lowest price on the market today for mortgage protection. None of these providers are the sole provider of insurance to any bank in Ireland.

Friends First are the only provider of dual life mortgage protection in Ireland today. That means twice the cover than every other provider in Ireland assuming a couple applies for only a few euros more than a single pay out policy. So yes, two pay-outs if both died, not one. They also are not the sole provider of life insurance to any bank in Ireland. You get my point.

Aviva, Irish Life and Royal London offer a second opinion medical service for free with their policies.
New Ireland and Irish Life allow you make significant changes to a policy without medically underwriting a client again.

Aviva are the only provider of an Overseas Treatment Plan as an add-on to their mortgage protection.
The list is endless and I expect a call from various providers saying I didn’t mention them for one thing or another but you get my point.

Advice is crucial. Never take the first offer and as always we are in the business of advising our clients on the right plan for them and their families, not just highlighting what one provider can offer them.

Get in touch with me directly if you would like me to help with any of this.

You’ll get me in the office in Dublin on 01 524 0000 or email me on nick.lawlor@newbeginning.ie

Take care,

Nick

Transfers of property can be set aside by creditors who were not creditors at the time of the transfer

Ever since the 1634 it has been effectively illegal for an insolvent person to transfer assets to another person.
This was made law in the time of Charles the 1st in the Conveyancing Law (Ireland) Act which provided for the avoiding and abolishing of “fained, covenous and fraudulent gifts contrived of malice, collusion or guile to have the purpose and intent to delay hinder or defraud creditors or others …”
This Act was in place up until December 2009 when it was replaced by section 74 of the Land and Conveyancing Law Reform Act 2009.

Over the last number of years a number of cases have come before the Courts which show the expansive nature of these provisions.

The facts of “Keegan Quarries Limited v McGuinness” are as follows.

McGuiness sold land to Keegan Quarries and as part of that transaction represented to Keegan that the land had been used as a quarry as far back as the 1950s. When Keegan Quarries began operating the quarry there was a planning objection lodged in court and at trial it became clear that the quarry did not have planning and had not been operated since the 1950s as had been promised.

Keegan Quarries sued McGuiness for damages for misrepresentation.

Now before that legal action had even begun, McGuiness transferred his land to his wife “out of natural love and affection”. There was evidence at the trial that the transfer was motivated also by “any come back” in relation to Keegan Quarries.

The Court held that there had been a misrepresentation from McGuiness to Keegan Quarries and that damages should be paid in the amount of €5.5m.

It further held that that the transfer by McGuiness of his property to his wife was unlawful and the court ordered that the transfer be rewound.

What is interesting about this case is that the “creditor” (Keegan Quarries) were not a “creditor” at the time of the transfer. They became a “creditor” years later and only after a trial before the Courts.

In her judgement Finlay Geoghegan J found that the law included not only a “creditor” but also “other person” and this meant that a party “from whom a potential claim is contemplated by the transferor is a person intended to be protected”.

Finally, while in Keegan Quarries there was evidence to suggest that the transferor had in his mind the possibility of a future action, and that this motivated his decision to transfer, it is also settled law that where no actual evidence of this exists, a fraudulent intent can be presumed where the effect of the transfer is such as to defeat or hinder a person who might become a creditor in the future.