I don’t need life insurance because…

Don’t need life insurance as I have death in service….

 

Or…

 

I need life insurance but not my partner, I earn all the money so if I’m gone… they are buggered…

 

Wrong…

 

Wrong…

 

Wrong…

 

I don’t need life insurance, I’m a billionaire….

 

Ill let you have that one….

 

So what is life insurance,

 

You cover yourself for an amount, on either a decreasing basis or for a set level amount for a number of years…

 

You decide….

 

Or if getting life insurance for a mortgage you normally let that dictate the type of insurance you need.

 

So picture this… you’re single, no kids… have death in service, only a millionaire… have no mortgage… do you need life insurance…

 

Not really… but you would have a need for critical illness cover and or income protection….

 

 

What’s that I hear you ask…

 

Critical illness is when you don’t die, but you’re seriously, critically ill, heart attack, cancer, stroke or loss of sight…

 

Then you possibly couldn’t work for 2 or 3 years, income stops, money runs out…

 

Also you could need care, adaptations to your house… many many things…

 

The what ifs are endless….

 

Income protection is what I call the gap in the middle, you’re not dead….

 

You’re not dying or seriously ill…

 

But you are off work…

 

You can’t work…

 

For more than 30 days…

 

Bad back…

 

Depression…

 

Stress…

 

Broken bones…

 

Statuary sick pay is horrendous, no one can survive on that alone….

 

And…

 

At some point no matter how much your work love you they will stop paying you eventually…

 

 

It’s a given…

 

So what do you do then…

 

That’s where income protection comes in covering those important bills and expenses…

 

 

So there is your whistle stop tour on what protection is … I have one more but I’ll save that for the end…

 

So back to my first question… or point…

 

 

Don’t need life insurance as I have death in service….

 

You have “death in service today”…

 

What if you change jobs, or go self employed?

 

Exactly…

 

What if…

 

As you grow older, you move out, you meet someone you have kids….

 

Those millions get spent pretty quick…

 

Your death in service… is good, normally free…

Well…

 

It’s a benefit for all your hard work…

 

But… my point…

 

The person whose 18 who doesn’t have a care in the world, no kids, no commitments, no house to run also has that “death in service benefit”…

 

When you take on a house or start a family you need life insurance…

 

 

That involves speaking to a professional working on what you need, what you can afford and what will work in the worst case scenario of…

 

Death…

 

It’s that serious.. that straight to the point… you will be asked…

 

How much would you, or your partner need if one of you were no longer there…

 

Trust me the “death in service” will no longer cut it…

 

Not

At

All

 

This response is the one that tickles me every time…

 

I’ve also made this gender neutral so I don’t get arrested… or orange paint thrown at my office…

 

“I need life insurance but not my partner, I earn all the money so if I’m gone… they are buggered…”

 

Simple… ask this one question…

 

Could you earn that money if they were dead?

 

Could you look after kids and still work…

 

Can the home look after itself…

 

Exactly….

 

Told you that one was simple…

 

I don’t need life insurance, I’m a billionaire….

Fair one…

But…

 

You can take life insurance to cover tax bill for inheritance…

 

didn’t know that did you!!!

 

Ok so that’s my 5p on why everyone needs life insurance, critical illness cover or income protection….

 

One thing I’ve not touched on is family income benefit…

 

So here is my scenario…

 

If I’m not here… I want to ensure the mortgage is paid off, I’d also like to make sure there was enough money for other bits and bobs like funeral expenses etc…

I also recognise that my family would need an income of (insert thousands) per month of lost income if I were not here…

Especially until the kids leave home…

 

This is where family income benefit steps in…

 

Being mortgage free having to run a house is still bloody expensive…

 

You can elevate that by having a family income benefit that would pay a set amount per year tax free for however many years you needed / could afford.

 

So that’s it…

 

Why not let insurance handle the peace of mind…

 

Work on a sensible budget…

 

Don’t go over the top…

 

Don’t be tight…

 

Work on a sensible affordable budget,

 

normally the price of a couple of pints each per month…

 

less than a gym membership and certainly cheaper than sky sports!!!

 

or for full protection we normally work on a budget of 10% of your mortgage payments…

 

i.e life insurance, critical illness cover, income protection maybe with a bit of family income benefit.

 

It all depends on what you can afford…

 

Health also plays apart, younger and healthier you are..

 

Cheaper it will be…

 

Don’t leave it too late…

 

Also, if you’re self employed…

 

Read this again…

 

Ill do a separate blog one day for you lot especially as it’s a completely different ball game and needs a different thought process…

 

Till next week…

 

Get insured!

 

Paddy

 

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