We all know that at the moment money is tight and times are hard. We are all looking at our outgoings and trying to decide which monthly expenses we can do without paying. How ironic, then, that with our financial security being at risk, often the first expense to get the cut is life insurance.
With my background in finance, it never fails to amaze me how some people go about assessing what is important to them. That priority be given to a Sky TV contract over a life insurance policy is nothing less than astounding to me. It is for this reason, and the fact that a lot of my clients are seeking advice before making any cutbacks, that I feel this article to be of utmost importance.
I was once told a story about a man who went to work and unfortunately he crashed his car and died. Now obviously the car was written off and was a complete insurance claim. Some weeks later there were two insurance men walking up the drive one had a cheque for 20,000 which was the average amount people insured themselves for back then and the other had 25,000 which was the replacement value of the nice BMW the man drove.
The question the story teller asked me at the time was with these two cheques which do you think the dead mans widow could replace first? I think you will agree quite a poignant story. But the point to this story is as a nation we put a far greater value on our possessions than we put on ourselves and this is no more obvious than in the times of poor cash flow when people start cutting costs.
So you are looking at your income and outgoings and you're wondering "do I really need to spend this money every month on life insurance?" Well in my opinion it is simple, if it was worth buying in the first place then it is more than worth keeping now. In fact you will probably need it more. If times are hard for your family right now with your income coming in, imagine for a second what it would be like if you were not here and you family did not have the benefit of your income. I tell you now times will be a lot harder and the luxuries of the likes of Cable TV and Sky TV will then be the first things to go.
Now this article is not meant to be scaring anyone into keeping on your life insurance payments. Scaremongering is not part of my business. What happens to you and your family is of little concern to the likes of me. What I do know, however, is that as a professional financial advisor, I deal with bereaved relatives on a day to day basis. Some of the deceased have life insurance, often not much, and some have none at all. What they all have in common is that they all say they wish they had planned better for the tragedy that has befallen them.
Of course my advice would be that almost all of us should have adequate life insurance sorted out from the outset. Unfortunately, I can't advise everyone, and it has to be an individual choice to take insurance out, but hopefully this article will push some readers in the right direction.
I think the best point to end on for this subject is, if you are really considering stopping your life insurance contributions, just to save a bit of money in these hard times, then speak to your financial adviser. They are best placed to advise you if this is really the best move you can make. You may not realise it but if you have had any health issues, since you first took the plan out, getting it restarted after you have stopped it can be very difficult. Finally stopping it may not be the only option open to you. You may be able to swap it for a cheaper plan whilst maintaining some if not all of the benefits, so get advice, you might still save money but you will BE PROTECTED! - 15224
With my background in finance, it never fails to amaze me how some people go about assessing what is important to them. That priority be given to a Sky TV contract over a life insurance policy is nothing less than astounding to me. It is for this reason, and the fact that a lot of my clients are seeking advice before making any cutbacks, that I feel this article to be of utmost importance.
I was once told a story about a man who went to work and unfortunately he crashed his car and died. Now obviously the car was written off and was a complete insurance claim. Some weeks later there were two insurance men walking up the drive one had a cheque for 20,000 which was the average amount people insured themselves for back then and the other had 25,000 which was the replacement value of the nice BMW the man drove.
The question the story teller asked me at the time was with these two cheques which do you think the dead mans widow could replace first? I think you will agree quite a poignant story. But the point to this story is as a nation we put a far greater value on our possessions than we put on ourselves and this is no more obvious than in the times of poor cash flow when people start cutting costs.
So you are looking at your income and outgoings and you're wondering "do I really need to spend this money every month on life insurance?" Well in my opinion it is simple, if it was worth buying in the first place then it is more than worth keeping now. In fact you will probably need it more. If times are hard for your family right now with your income coming in, imagine for a second what it would be like if you were not here and you family did not have the benefit of your income. I tell you now times will be a lot harder and the luxuries of the likes of Cable TV and Sky TV will then be the first things to go.
Now this article is not meant to be scaring anyone into keeping on your life insurance payments. Scaremongering is not part of my business. What happens to you and your family is of little concern to the likes of me. What I do know, however, is that as a professional financial advisor, I deal with bereaved relatives on a day to day basis. Some of the deceased have life insurance, often not much, and some have none at all. What they all have in common is that they all say they wish they had planned better for the tragedy that has befallen them.
Of course my advice would be that almost all of us should have adequate life insurance sorted out from the outset. Unfortunately, I can't advise everyone, and it has to be an individual choice to take insurance out, but hopefully this article will push some readers in the right direction.
I think the best point to end on for this subject is, if you are really considering stopping your life insurance contributions, just to save a bit of money in these hard times, then speak to your financial adviser. They are best placed to advise you if this is really the best move you can make. You may not realise it but if you have had any health issues, since you first took the plan out, getting it restarted after you have stopped it can be very difficult. Finally stopping it may not be the only option open to you. You may be able to swap it for a cheaper plan whilst maintaining some if not all of the benefits, so get advice, you might still save money but you will BE PROTECTED! - 15224
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