Are You Adequately Protected?
November 13th, 2006
Scottish Widows recently released their first Protection Report, to examine the state of the nation’s protection against ill-health and death. Unsurprisingly it reveals that the average Brit is grossly unprepared for the worst.
According to the report, the average UK household has essential expenditure totalling £1,105 per month, including mortgage and other loan repayments, food, utility bills, etc. Further, with the increased likelihood of mums returning to work after having children, nearly half of all households rely on at least two incomes.
However only 1 in 4 Brits believe they have adequate protection in place should they lose the main income from their household.
So why do Brits routinely underinsure themselves against death and ill-health? There are many reasons of course; one of the most common is the perception that it will never happen to me
. We are all guilty of believing that premature death and long term ill-health is always something that will happen to someone else. However this is not always the case and when the unexpected does happen the financial consequences can be devastating.
I am sure we can all think of a family close to us that has suffered the financial consequences of death or ill health of one of the breadwinners.
As a society we seem to be happy to insure our mobile phones, washing machines, holidays , Plasma TV’s etc yet we fail to properly insure the most important things… our lives and our incomes!
My top tips:
- Stop thinking that premature death and ill-health are things that happen to others.
- Sit down with your loved ones and have an adult discussion about what would happen financially in the event of death or ill-health.
- Get in touch with us or your existing IFA to find out what insurances are available and how much they cost.
Peace of mind that your loved ones are protected needn’t cost the earth and you can then focus on enjoying life to the full.
Author: Jason King
November 13th, 2006
Category: Life Insurance.
