Wanted - Dead or Alive!
“Two pints and £100,000 of life insurance please barman” is not something you hear very often. Let’s be honest, probably never. But the cost of protecting loved ones by securing a guaranteed pay out of say, £100,000, in the event something should happen to you can often cost little more than a few drinks every month.
Insurance for assets (cars, your house, your possessions) is something most responsible people take seriously but too often we forget to think about how all of the day to day bills would be paid in the event of serious illness or death.
It may cost £200,000 to rebuild your house if it burned down. It may cost £20,000 to replace your car if it was stolen. How much would it cost to replace you?
The numbers can be alarming! If we assume a working life to age 65, the earnings potential of a 25 year old earning 25K p.a. is £1 million before allowing for inflation. For a 30 year old earning £40,000.00 p.a. the figure increases to £1.4 million. For and a 40 year old earning £80,000.00 the figure is £2 million.
We are not suggesting that you need such high levels of cover but the financial impact of disability and death can be alarming when looked at in these terms.
And yet the solution is straightforward and costs much less than you may think. To insure a healthy 40 year old for £250,000 for 20 years costs less than £20 per month.
We know that organising your finances is less appealing than an evening down your local – but for a few hours of your time the potential long term benefits for you and your family could literally be life-changing.
Now you could probably sort out a quick fix online but be careful:
How much cover do you need?
Do you need cover in the event of illness, death or both?
What cover is already in place? Think about employer schemes, existing policies and pension schemes. How will these all fit together?
Do you have a Will?
Should the benefits be in trust?
There’s probably a bloke down the pub who could give you a view on all of these issues. But, if you want our advice:
Drink up, speak to an expert and get it done!