04 October 2015

The information contained within the following news articles have been pre published. The articles were published on the dates indicated and the information contained within these issues include references to taxation, legislation, regulation and other issues or concerns that may no longer apply

The Importance Of Protecting Your Family


Many of us know that we have to insure our car and house, even though we hope that we will not need to make a claim.  We do this year after year without much thought, yet when it comes to insuring our families’ standard of living, we often overlook this. 

We may take out life assurance cover to protect our mortgages but again this is often because we believe we have to.

Family protection should be the first priority when assessing your financial planning needs.  Nevermind savings and retirement planning as these won’t matter if something happens.

Let’s consider someone earning £30,000 a year.  Their take home pay is approx £22,500.  This is the income that they contribute to the family’s standard of living.  This helps pay the bills, pay for holidays, provide for the kids etc. 

Now let’s consider if that person dies or suffers a serious illness and they stop working.  What will happen to the family?  How will they continue to pay the bills, pay for holidays and provide for the kids?  With three kids myself I know that it just seems to get more and more expensive, and whilst I try not to spoil my kids, I wouldn’t want to have to stop doing things we were used to doing in the past.

You don’t have to be earning to be contributing to the family’s standard of living.  If you are a stay at home mum or dad, what would be the cost of replacing the childcare and domestic work being done?  In a survey by Legal & General they reckon this could amount to as much as £32,000. 

So how much could this cost me?

That will depend upon your health, age and whether or not you smoke.  To give you an idea a 35 year old non-smoking male applying for level cover of £250,000 for 25 years, assuming standard rates, would pay £10.87*.  The same person applying for a family income benefit policy of £25,000 per annum for 25 years would pay £17.86*

There are many ways a life assurance policy can be set up, therefore to make sure you get the right policy, contact Census Financial Planning now for a free consultation.

*Figures sourced from Exchange 10.08.2011.

Paul Dixon

Chartered Financial Planner

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