David answers questions on Galway Talks

QUESTION:  I have substantial borrowings and I am concerned whether I have sufficient life cover in case something happens to me.  What is your advice?ANSWER:  I’m assuming that you possibly have purchased a number of investment properties during the boom years.  At that time, for competitive reasons, a lot of institutions did not insist on borrowers taking out life cover attached to buy to let mortgages.  Considering the possibility that your properties are in negative equity, there will be a substantial shortfall between the property values and the sums  borrowed, if you die.

The only way to redress this is to consider taking out some life cover to bridge the gap.  Obviously this will be dependent on your age and health circumstances.  I would urge you however to look at this issue as a matter of importance as, in the event of your death, the bank may chase your estate for any shortfall owed to them.

QUESTION:  I’ve recently been made redundant and I’m concerned about my financial position?  ANSWER:  This is a time when you should want to take a full financial checkup on your finances.  The obvious issue for you is to hopefully, obtain alternative employment.  However, your financial structure should also be reviewed and adjusted accordingly.