In the current pandemic, we are all realising how important it is to protect ourselves. Life is unpredictable and while we cannot stop events beyond our control we can protect ourselves from the financial impact of these events. Many of our clients have contacted us, wondering how they can further protect themselves and their loved ones, so we have written this blog post to provide some information for you.
Firstly, the most important thing to protect, is your income. If you were to become unfit for work due to illness or injury, how would you pay the bills? Would the state benefit cover everything you needed it to? There is a form of insurance called income protection which allows you to protect yourself against this eventuality, providing you with a replacement income.
Take the image below as an example, a male and female couple, both aged 30, non smokers. There is a 91% of an insurable event happening to one of them before retirement.
If your spouse/partner were to pass away unexpectantly, how would you pay the bills without their income, or how would they cope if you passed away?
Most people have mortgage protection, as it is a requirement, if you have a mortgage outstanding. However this level of protection is extremely basic. This will only pay off the outstanding mortgage in the event of one of your deaths. If you have children, how would they be supported? Life cover for approximately 3/4 times your annual earnings is a great place to support your dependents financially in the event of your untimely death.
In the event that you or your spouse/partner develop a serious illness, how would you cope financially? Critical illness cover can provide a lump sum benefit following a diagnosis with a serious illness.
These are all important things to think about and we have been harshly reminded of that in the Covid-19 pandemic. Please get in contact with us if you wish to discuss any of the above matters. Finally, we hope that you are all staying safe and well, and remember to follow the HSE guidelines.