Family Protection

We all tend to insure our homes content, our personal belongings, our cars and even our pets but there are surprisingly few of us who ensure ourselves!

This maybe as we feel that the above items are expensive to replace; how expensive is it to replace a lost income?

Most of us recognise the need to protect our dependents and understand how life assurance can help. The most common reason for investing in life cover will be to protect against the financial burden of mortgage payments but it is also part of the review we undertake perhaps after getting married or, more likely, when we have children.

For a single person with no dependents, life assurance may not be necessary. However, if you have debts and no savings, then a small amount might be necessary to pay expenses and prevent someone else being landed with that problem, after you’ve gone. There is also an argument that you should cover a mortgage but in this case, if you are happy to pass the property back to the bank, or if your beneficiaries are more than able to cover the mortgage payments while a house is being sold, then you may not feel the need.

If you have dependents, however, you need to look at the consequences for them if your income were removed suddenly. How much do you earn? Do you have debts? How much is your mortgage or rent? Do you pay school or university fees? How long before your children will be working? Does your partner work? Could they continue to work without your support?

Even for those people who don’t work, there can be a considerable cost involved in getting help with children or around the house if the partner needs to keep working and that support is removed.

Life assurance may be a small price to pay to put your mind at rest.

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Hoskin Financial Planning