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Fiona O’Donnell QFA, FLIA. Risk Consultant

Income Protection and Specified Illness Cover for Employees of the National University of Ireland, Galway January 28 th 2009. Fiona O’Donnell QFA, FLIA. Risk Consultant. Agenda. Introduction About Marsh The Income Protection Plan Benefits Examples Price AOB. Introducing Marsh and MMC.

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Fiona O’Donnell QFA, FLIA. Risk Consultant

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  1. Income Protection and Specified Illness Coverfor Employees of the National University of Ireland, GalwayJanuary 28th 2009 Fiona O’Donnell QFA, FLIA.Risk Consultant

  2. Agenda • Introduction • About Marsh • The Income Protection Plan • Benefits • Examples • Price • AOB

  3. Introducing Marsh and MMC • Marsh, the world's leading insurance broker and risk advisor, has over 26,000 employees providing advice and transactional capabilities to clients in over 100 countries. • Marsh in Ireland employs over 250 risk and insurance professionals and has offices in Dublin, Galway, Cork, Belfast, Limerick and Derry. • Clients include almost 30% of the Top 1,000 companies in Ireland * • Our parent company – MMC – is a global professional services firm whose companies include Mercer, Guy Carpenter, Kroll, and Oliver Wyman. * Based on latest Irish Times Top 1,000 companies

  4. Marsh Consumer Practice • Marsh has an outstanding track record in the Public Sector Market dating back over 30 years • We provide independent Pension advice, Group Life and Income Protection for the Public Sector (approx.120,000 employees.)

  5. Marsh Consumer Practice • Marsh’s Consumer Practice acts as consultant to numerous unions and employers throughout Ireland, including: • IMPACT • Teachers’ Union of Ireland • Public Service Executive Union • Civil & Public Service Union • Irish Hospital Consultants Association • Local Authorities • Health Boards • Voluntary Hospitals & Nominated Health Agencies • Defence Forces

  6. Income Protection What is Income Protection? • A Plan whereby a Monthly Benefit is paid, following a pre-determined period of absence, to a member who is unable to perform the duties of their normal occupation as a result of an accident or an illness.

  7. Income Protection Why Protect Your Income? • One of the greatest threats to your livelihood is ill health. This is because if you fall ill your pay provides you with an income for a limited period only. Once your sick pay runs out, your income will fall dramatically.

  8. Benefits of an Income Protection Plan • 25% of Salary after an absence of 6 months in any period of 12 consecutive months …increasing to… • 75% of Salary less any Ill Health Early Retirement Pension entitlement (applicable after 2 years) and/or Social Welfare Disability Benefits, where applicable after absence of 52 weeks in any 4 consecutive year period.

  9. Some Facts • 1 in 6 of Ireland’s working population will be ‘disabled’ for more than 6 months at some point in their lives. • The average claim duration is 5.5 years  • Social Welfare disability allowance is just €10,286 per annum for an individual    • For a family with 1 adult dependant and 2 children this is just €19,610 per annum  • Public Sector workers receive full pay for their first 6 months of absence followed by half pay for the next 6 months  • 36% of respondents to a recent survey think their salary is protected by other insurance e.g. Mortgage Protection, Loan Repayment Protection or Critical Illness cover • However, less than 10% of the Irish workforce have any form of private salary protection

  10. What Happens To Your Salary If You Fall Ill?

  11. Income Protection Plan • Who Is Eligible To Join The NUIG Income Protection Plan? • All employees of NUIG under age 65 and either full time or part time and working on average not less than 20% of the normal working week. • What Does The Plan Do? • Covers 75% of Salary less any Ill Health Early Retirement Pension (if applicable) and/or Social Welfare Disability Benefits. • Ceases on recovery, or 65th Birthday, whichever is the sooner.

  12. How Much Does It Cost? • Less than you might think! • The Plan is exclusively for employees of NUIG and has been designed to be affordable for every member. • The NUIG Income Protection Plan is remarkably good value because it is negotiated on a special group rate and costs significantly less than buying the same cover on an individual basis. • The rate has been reduced from 1.20% to 1.15% of salary with effect from 1 January 2009.

  13. Administration and Claims • Dedicated administrators – Kay Harvey and Muiriosa Flaherty • Specialist claims team • Good record in handling difficult claims • Experience in dealing with payments • Ensure that payments are timely & accurate

  14. What Next? • Simply complete an application form and answer a few short medical questions which I can go through with you today. • Irish Life are offering 3 months’ free cover for new entrants. • For new employees who have commenced work in the past three months they can join the Plan with no Underwriting.

  15. Promotion of Plans • Explanatory Booklets • Group Presentations • Intranet • Workshop at least twice a year • 3 months’ free cover for new entrants

  16. New Feature: Specified Illness Cover • It’s easy to think that only older people suffer from serious illnesses but the Specified Illness Cover claims paid by Irish Life in previous years show that over half of all claims were paid to people under 50. In fact: • You are 4 times more likely to suffer one of the listed conditions before age 65 than to die. • The average age of our customers who claim is 50 for men and 45 for women • 18% of claims are paid out to people who were on cover for less than 3 years. • The most common illnesses are cancer, heart related illnesses and stroke • By joining the NUIG Group Specified Illness Cover Plan you will receive a tax-free lump sum in the unfortunate event of you suffering one of the range of illnesses covered. • Cost is just 0.89% of salary and the benefit is 50% of Salary.

  17. Note on Early Retirement • Any decision on ill health early retirement will be deferred for two years from the start of the income protection benefit. • Whilst this benefit continues to be paid, no deduction for ill-health early retirement entitlements will be made for the first two years unless this is actually received by the member. • Therefore the member is not financially disadvantaged by deferring the ill-health early retirement decision and has not closed off the option of returning to work.

  18. Contact Details Fiona O’Donnell QFA, FLIA – Risk Consultant. Mobile: 087 9644 629 Email: fiona.odonnell@marsh.com Dedicated NUIG website: www.marsh.ie/future/nuig/

  19. Any Questions?

  20. http://www.marsh.ie/future/

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