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Irish say they're worth E67k less now

Monday, July 28 14:01:13

The value Irish people have placed on their lives has changed dramatically in the last ten years with Irish people saying they're worth E67,000 less than in 2004.

A study by Caledonian Life looked at what is termed the "sum assured" on their life policy business from 2004 to 2013. This showed that the amount of Life cover people put in place fluctuated significantly throughout the years - with the amount or perception of what we're worth, peaking in 2008.

Their statistical analysis shows the impact of our nation's economic challenges on the levels of Life cover put in place, which could be seen to reflect our sense of reduced financial worth.

Joe Charles Marketing Manager at Caledonian Life explained, "As we all know, over the last decade Ireland has seen its economic and societal landscape change dramatically. So it's no wonder that people's assessment of their financial value has changed over the years. Life cover is normally put in place to provide a replacement income and to maintain their dependents lifestyle, if the main breadwinner in a family passes away. So Life cover can be very much seen as an indicator of the financial value people place on themselves. According to Joe, "We looked at the overall averages of Life cover in place (or 'sum assured') in the year 2004 and also in 2013. This showed that the sum assured per policy amount has dropped considerably. In fact, by an average of E67,000. Upon further analysis, we see that this drop is particularly evident in men in their forties, who now believe that they are worth 1/3 less than in 2004 and 41pc less than the peak of 2008".

"Our study also shows that in the last 10 years, it has generally been men in their forties who have the most Life cover in place. So you could say that this is when they believe they are 'worth the most' and in turn, need high levels of Life cover. And of course, it's important that they do have sufficient cover in place," he added.

"However in reality, many experts would argue that it's actually those in their thirties with young children and many other financial responsibilities and who are also facing 20 plus years of funding them, who have a greater need for bigger levels of Life cover," said Mr Charles.

The Caledonian study also showed that women consistently have lower level of cover in place than their male counterparts - particularly in the older age categories.

For more visit: www.businessworld.ie