“Most people are aware that it is sensible to have life insurance in place to protect your mortgage but this is only one aspect of Financial Protection that families should consider. If a family looses their breadwinner or a stay at home parent (worth about £30k a year!) they are going to face real hardship, even if the mortgage is paid off so extra cover should be considered for ongoing monthly costs. Ideally families should consider the following additions to a basic life policy:
Critical Illness “CI” insurance – this pays out a lump sum in the event of the insured person being diagnosed with a qualifying Critical Illness, typically Heart, Cancer, Stroke etc. Such a payout can be used to pay off a mortgage or simply for the family to live on.
Income Protection – this pays a monthly amount if you are unable to work due to accident or illness. This is particularly important if you don’t get any sick pay from your employer or are Self Employed.
We hear many objections from clients such as:
“It won’t happen to me” and “I don’t like thinking about such things”. Many people feel uncomfortable addressing their own mortality or potential illness or simply prefer not to think about it but take a minute to imagine how distressing it would be to your family to have to deal with financial hardship as well as a bereavement or serious illness?
“I can’t afford it” – like anything in life you get what you pay for and any cover is better than none. Speak to us and we can review your circumstances and make a recommendation to fit your budget. It is an ironic fact that people are more likely to pay to insure their pets than their breadwinner!
“Insurers never pay out” – actually they do! If your policy is correctly set up there is no reason why it won’t pay out.
Finally, I will mention Business Financial Protection which is a will for your business and you owe it to your staff and family to make provisions for the business to continue. The loss of a key person can immediately impact profits and ultimately force it to close. Insurance can easily be arranged to protect against this risk, insurance money would pay for replacement staff, buy a deceased person’s shares from their family and repay business loans (due upon death of a key person).”
Flexible Health are based in Edenbridge and we offer advice over the phone or in person. If you would like advice please call Julie Defago on Freephone 0800 849 7744.