Let’s talk ‘Protection’…

August 27, 2020

And no, I’m not talking about how you’ve all made or practised making your babies...So! Some of you will have children, some of us will have ‘step-children’ and some will or won’t have mortgages. The list goes on for the responsibilities that we do or don’t have including those who rent homes.

The fact of the matter is that we all insure our cars, the majority of us insure our homes and only some of us insure our lives and incomes. Do we genuinely value our cars more than we value our own lives? Or is our perception of this that it is generally ‘too expensive’ before even checking out the finer details?

The difficulty is, that there are so many different types of life protection and most of which get generalised as ‘life insurance’. In real terms, life cover, ensures that a lump sum is paid out in the event that you pass away. Generally the funds from this payout would be used to repay an outstanding mortgage balance, to support an ex-spouse where maintenance payments are due to be made or an additional sum that can be left to partner/spouse or children.

Life cover (subject to underwriting) is generally the cheapest form of life protection that is available to us. Even when adapting it to lump sums or regular incomes. Other types of cover include things such as critical illness and income covers which are essentially a sick pay replacement type policy. There are so many varying options on these policies, the cost can be tailored to your specific circumstances and mostly, to your preferred budget.

What I will say is that if YOU are unable to carry our your current job or your general daily activities, is your life able to resume as normal? Often the answer here is no.

Now, don’t get me wrong I am a realist and I really understand that the majority of people that I meet, don’t want to be spending hundreds of pounds on insurances per month. But I am a true believer in that you should get the opportunity to understand what the different types of covers are, that are available to you and the cost options too. I’ve mentioned in my previous blogs, take advice. Let it be a decision that you make and understand rather than brushing over it because of a potential predetermined misconception that you/we have.

Best case scenario, you have a policy and never have to claim. Worst case scenario, you have an unfortunate scenario where you have to claim. BUT you have total peace of mind that your family is totally protected and you have financial options.

Isn’t it such a morbid conversation topic? I know we mostly avoid these types of conversations because they’re a little awkward, but imagine, worst case, your family is fully looked after for a reasonable cost and that it is one less stress or subconscious worry off your mind. The energy that we save in these worries can be directed elsewhere and who knows what we can achieve with that.

I would love to hear your thoughts and opinions here?

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