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Blueprint Financial Planning was founded in 2018 and over the last 6 years has grown significantly both in client numbers and assets under management. The company was founded on the principals of honest, integrity, impartiality with a client centric approach. I have been the sole adviser since inception and have often thought of adding an adviser, the opportunity to bring on an experienced adviser who shares the same principals as myself presented its self in May of this year and to that extent I am delighted to welcome Tom Barry to Blueprint Financial Planning. Tom is a native of Bantry in West Cork and has worked as a financial adviser since 2007 in a variety of senior advisory roles. Tom is very well known and respected in the West Cork area and his advice to clients is synonymous with honesty and integrity.

Introduction

Serious illness cover, also known as critical illness insurance, provides a lump sum payment to policyholders upon the diagnosis of a specified serious illness. This report examines the claims statistics for serious illness cover in Ireland for the year 2024, drawing on data from leading insurance providers such as Zurich and Aviva.

Key Findings

1. Claims Payout and Illness Distribution
   • In 2024, Zurich paid out over €23.4 million in serious illness claims. The majority of these claims (approximately 69%) were due to cancer. Among female claimants, 83% of serious illness claims were cancer-related, with breast cancer comprising 45% of these claims. For male claimants, cancer accounted for 57% of claims​ (Zurich Ireland)​​ (Lion.ie)​.
   • Aviva reported a significant payout of €121 million for various claims in 2024, with a notable portion allocated to serious illness cover. Cancer, heart attacks, and strokes were the leading causes of claims, reflecting broader trends in serious illness cover across the industry​ (Aviva Insurance)​.
2. Average Age and Gender Breakdown
   • The average age of serious illness claimants was 52 years, highlighting that serious illnesses often strike in mid-life. This statistic underscores the importance of maintaining coverage as individuals approach middle age​ (Zurich Ireland)​​ (Zurich Ireland)​.
3. Rejection Rates and Common Causes
   • Insurance providers typically approve the majority of claims, with Zurich and Aviva both reporting high acceptance rates. However, some claims are denied due to non-disclosure or because the illness did not meet the policy’s specific definition. For example, certain types of prostate cancer must meet a particular Gleason score to qualify for a payout​ (Lion.ie)​​ (Aviva Insurance)​.
4. Financial Impact of Serious Illness
   • The financial burden of serious illnesses extends beyond medical costs. The Irish Cancer Society highlighted that cancer patients face significant out-of-pocket expenses, averaging €756 per month, even with a medical card or private health insurance. Additionally, those unable to work due to their illness experience an average income drop of €1,527 per month​ (Zurich Ireland)​.
5. Policy Features and Additional Benefits
   • Insurance companies have enhanced their offerings with additional benefits. For example, Aviva includes services such as digital GP access, mental health support, and bereavement counselling as part of their serious illness cover packages, providing comprehensive support beyond the financial payout​ (Aviva Insurance)​.

Conclusion

The data for 2024 illustrates the critical role of serious illness cover in providing financial support during challenging health crises. Cancer remains the predominant reason for claims, followed by heart attacks and strokes. With the average claimant being in their early fifties, the importance of maintaining robust coverage as individuals age is evident. Additionally, the financial strain of serious illnesses necessitates comprehensive coverage and additional support services to mitigate the broader impact on individuals and families.

Recommendations

1. Policyholders should ensure full disclosure during the application process to avoid claim rejections.
2. Consideration of additional benefits such as mental health support and digital GP services can provide holistic support.
3. Regular reviews of coverage are advised to ensure that the policy meets the changing health needs and financial situations of the insured.

By focusing on these areas, policyholders can better navigate the challenges posed by serious illnesses, ensuring they have the necessary financial and emotional support during difficult times.

In the vast landscape of finance and investment, certain figures rise above the rest, not just for their wealth but for their profound influence on the principles that govern success. One such luminary was Charlie Munger, a man whose name became synonymous with wisdom, rationality, and the art of intelligent investing.

Born in Omaha, Nebraska, Charles Munger came from humble beginnings. His early life was marked by a relentless pursuit of knowledge, which eventually led him to the University of Michigan, where he studied mathematics. Little did the world know that this young man would grow up to be one of the most revered figures in finance.

Munger’s journey into the world of investments didn’t follow a traditional path. After serving as a meteorologist in the U.S. Army Air Corps during World War II, he attended Harvard Law School and, later, entered the field of law. It was a twist of fate that brought him in contact with Warren Buffett, a meeting that would change the course of both their lives.

Charlie Munger’s name became inseparable from Warren Buffett’s as the two forged a partnership that would define an era of investment wisdom.

As Vice Chairman of Berkshire Hathaway, Munger played a pivotal role in the company’s success. His influence extended beyond finance; he became renowned for his wit, clarity of thought, and an uncanny ability to distill complex ideas into simple, actionable principles. The annual Berkshire Hathaway shareholder meetings, where Munger and Buffett share their insights, have become legendary gatherings, attracting investors and enthusiasts from around the globe.

Berkshire Hathaway, under the leadership of Warren Buffett and Charlie Munger achieved remarkable success and has become one of the most well-known and respected conglomerates in the world.

Berkshire Hathaway’s stock has consistently outperformed the broader market over the long term. The company’s success in generating substantial returns for its shareholders has made it a paragon of long-term investment.

The success of Charlie Munger and Warren Buffett was a testament to a combination of astute investment strategies, enduring principles, and a partnership built on mutual respect and shared values.

Munger’s wisdom extended beyond the stock market. His speeches and writings were rich with life lessons, emphasising the importance of lifelong learning, intellectual humility, and ethical conduct.

On November 28 th 2023 the investing world lost a colossus, may he Rest In Peace.

Today, Michael McGrath TD (Minister for Finance) and Paschal Donohoe TD (Minister for Public Expenditure, National Development Plan Delivery and Reform) delivered the Budget for 2024 to the Dáil. So what were the main takeaways?

Pension Changes

There were no changes in relation to private pensions in Budget 2024, although we expect some small pension changes to be included in the Finance Bill 2023 which is due to be published later this month.
 
Social Welfare Pensions
Budget 2024 confirmed that the State Pension (Contributory) Personal Rate will increase by €12 per week from €265.30 per week to €277.30 per week from January 2024.
 
Cost of Living “One Off” Support Payments
This year the Cost of Living Support payments will be as follows:

• Energy credit of €450 across three instalments of €150 between the end of this year and next April
• Double child benefit
• Christmas bonus of social welfare payments
• Once-off double payment of all social welfare payments in January
• €400 lump sum to recipients of the working family payment
• Those on the Living Alone Allowance will receive an extra €200 payment
• Once-off payment of €400 to be made before Christmas to recipients of Carer’s Support Grant, Disability Allowance, Blind Pension, Invalidity Pension and Domiciliary Care Allowance.

Pensions – No Changes

In summary, there were no changes in Budget 2024 to the following:
 
Employer Pension Contributions
Corporation Tax relief will continue to be available on Employer Pension Contributions paid to an approved Occupational Pension Scheme subject to the overall maximum pension funding and benefit limits.
 
Employer Contributions to a PRSA
Last year the Finance Act 2022 removed the Benefit-in-Kind Charge on an Employer Contribution to a PRSA and there were no further changes in Budget 2024. There is currently no limit on employer contributions to an employee’s PRSA
(however, the overall standard fund threshold for an individual of €2m still applies).
 
Tax Relief – Employee Pension Contributions 
This relief will continue at the marginal rate of income tax but subject to the Age- Related Contribution Limits and Earnings Cap (and overall Revenue Maximum Approvable Benefit limits).
 
Employer Corporation Tax
The Corporation Tax rate remains at 12.5% for the vast majority of businesses trading in Ireland (with a minimum effective tax rate of 15% applicable from 1 January 2024 to large firms with group turnover of €750 million or more).
 
Retirement Lump Sum
Up to €200,000 remains tax-free and amounts from €200,000 to €500,000 will be taxed at 20%.
 
Standard Fund Threshold
The Taxes Consolidation Act (Chapter 2C of Part 30) imposes a limit or ceiling on the total capital value of pension benefits that an individual can draw in their lifetime from tax-relieved pension products, where those benefits come into payment for the first time on or after 7 December 2005. This is called the Standard Fund Threshold (SFT) and is currently €2 million. There are significant additional tax liabilities where the limit is exceeded.
 
We will need to wait until December 2023 to see whether Minister for Finance agrees to amend or increase the SFT from 2024 due to the cost of living crisis in line with an earnings adjustment factor (as provided for in the definition of “standard fund threshold” in section 787O of the Taxes Consolidation Act, 1997).

 
Income Tax
There was an increase of €2,000 in the income tax standard rate band for all earners, from €40,000 to €42,000 for single individuals and from €49,000 to €51,000 for married couples/civil partners with one earner and increase up to €33,000 (from €31,000) for two earners.
 
There was also an increase each of the Personal Tax Credit, Employee PAYE Tax Credit and Earned Income Credit by €100, from €1,775 to €1,875 and an increase of €100 in the Home Carer Tax Credit from €1,700 to €1,800 and an increase of €200 in the Incapacitated Child Tax Credit (from €3,300 to €3,500).
 
Universal Social Charge (USC)
The USC Rates & Bands from 1 January 2024 will be:
 
Incomes of up to €13,000 are exempt. Otherwise:
€0 – €12,012 @ 0.5%
€12,013 – €25,760 @ 2% (there was an increase of €2,840 to the ceiling for the 2% rate band)
€25,761 – €70,044 @ 4.0% (the rate is to reduce from 4.5% to 4%)
€70,045+ @ 8%
Self-employed income over €100,000 = 3% surcharge
 
The USC concession for medical card holders is being extended for a further two years to 31 December 2025. Reduced rates of USC apply to individuals who have a
full medical card and whose income is €60,000 or less per annum. The reduced rates of USC are 0.5% on the first €12,012 and 2% on the balance.
 
PRSI
Pay Related Social Insurance (PRSI) contribution rates will increase 0.1% from 1 October 2024.
 

Corporate Deposits
The current corporate exit tax rate remains at 25%, in line with corporation tax for non-trading income.
 
Capital Acquisition Tax (CAT)
There was NO increase in any of the CAT Thresholds and these remain as follows:
 
The Group A Threshold (gifts or inheritance from parent) remains unchanged at €335,000.
The Group B Threshold (gifts or inheritance from
brother/sister/aunt/uncle/grandparent/foster child) remains unchanged at €32,500.
The Group C Threshold (relationship other than A or B) remains unchanged at €16,250.
The rate of Capital Acquisition Tax remains at 33%.
 
Capital Gains Tax (CGT)
Capital Gains Tax rate remains at 33%.