Life Insurance – Needed, Not Always Wanted….

Life Insurance – Needed, Not Always Wanted….

One of the most important aspects of financial planning is unfortunately the main thing people do not plan for or even like to discuss and that is what would happen if the unfortunate happened and you were not here to provide for your family.  I ask all of my clients that if you knew you were going to die tomorrow, what would you want to protect today?  How many years of your salary to ensure your family can continue in their current lifestyle?  How much would you need to pay the mortgage off?  These are all questions that need to be asked, and plans put in place.

The first answer is usually “10 million pounds!” and I don’t blame people for thinking that, I’d do the same.  However, when you look at the actual necessity of what is needed and a little maths is applied the answers quickly become much the same for most people.  The mortgage would need clearing, the wife/husband & children would need looking after so the breadwinners income would need replacing.  There may even need to be some planning for the cost of funerals, university costs and possible lump sums for retirement income.

Once I look at these areas with my clients, it is then a case of looking at what is currently in place and ensuring that it is still adequate and looking at all the ways in which we can look to give my client the peace of mind they are looking for.  The last piece of the protection jigsaw is ensuring that the clients have a clear budget in mind to pay on a monthly basis to make sure that the family and any other loved ones are provided for.

I have been advising on life insurance for over 6 years and to lose a loved one is an unthinkable tragedy that nobody wants to consider, however it is a real possibility and one that unfortunately simply cannot be ignored.  None of us like to think of tragedy’s or anything like this, but it happens and it is better to plan now, than regret later.

The simple fact is that life insurance is one of the smaller outgoings in comparison to Mobile Phone contracts, Car insurance, Utility bills etc…. All of which we (begrudgingly) pay for month in and month out, ignoring the fact that the person who pays them isn’t even sure they’re insured themselves.  If you could protect your family for a cost of less than 5% of your monthly salary, would you want that piece of mind?  Well reality is that it is usually a lot less than that, yet it still remains that most households throughout the UK are grossly under insured.

Everyone has lost a loved one far too soon, we all know it happens and we have a duty of care to our loved ones to ensure that although we cannot do anything about the emotional impact a death has, we can prepare and remove the financial impact completely, with careful planning.

This blog was provided by Jodie Stevenson, one of our Protection Specialists.  If you are concerned that you do not have the correct provisions or want to review your current protection arrangements, please contact 07951511616 to speak with Jodie directly.