David at Citrus Financial talk us through the importance of being well insured.
Have a quick look round. What is the most valuable thing you can see? Chances are you won’t think of the obvious.
The answer? It is you or your partner!
You may be wondering how this can possibly be the case, especially as you have just invested in a state of the art 52” TV.
The fact is that to get that TV you have had to use some of your hard earned cash. It is that you have earned the money that is the important point. If for some terrible reason such as sickness or injury, where would the funds to pay for everything come from?
For some luckier than others, they may find that their employer will still pay them whilst they are off sick. Even so, it is possible that this will be for a very limited time as difficult economic times have led to a reduction in employee benefits.
Almost certainly, there will be little help from the state, regardless of how much you have paid into the system.
The solution is to take out some insurance on yourself. We are all familiar with making sure that our mortgage is paid for if we die or suffer from a critical illness but very few of us look at protecting our income – the very thing that pays the mortgage
Income protection is specifically tailored to your individual circumstances. The cover will be linked to your income and the work you are involved in and even how long you can wait before the benefit is paid to you. The insurance companies will not pay you the full amount of your income as if they did there would be no incentive you to return to work but, you can make sure that sufficient is coming in to pay the essential bills.