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“It’ll never happen to me”

Wow, 5,211 of you have read this.
image001Today’s subject is not the cheeriest, I’m afraid, (bit like the weather at the moment), but I’m sure you will feel better if you take action to look after your family….. This is a subject that forms a vitally important part of good financial planning, namely protection.

It seems to be part of our human nature that we think bad things only happen to other people, and never to ourselves. For some reason, we like to believe we are immune from having a heart attack or stroke in our 50’s, or being diagnosed with cancer at a young age, or even dying early. Unfortunately I have known people that were affected by all these situations, and the impacts are felt by friends and family alike, not just the person themselves.

Of course, it’s not cheerful to dwell on this too much, and maybe that’s why we go about our daily lives with a cloak of optimism around us…. but when others are financially dependent on us – our children, our partner or maybe our elderly parents – this responsibility brings the issue into sharper focus.

Our most valuable asset in our working life is ourselves  – our ability to earn money and to provide for others financially. So what would happen if you or your partner couldn’t work? What financial impact would this have on you and the rest of your family?

If you are a self-employed business owner, the chances are you would feel the financial impact almost immediately. This was a big realisation for me when I changed from being employed to self-employed, as I hadn’t really considered it previously. For those with generous employers, you might continue to be paid in full for the first 6 months, and then half pay for a further 6 months…. but what if your rehabilitation or cancer treatment lasts longer than a year and your income stops?

Fortunately, there are insurance policies designed to replace your income in the event of you being unable to work through illness or an accident. There are others that pay out a lump sum on the diagnosis of a critical illness, which can be used to pay off your mortgage which is usually the highest monthly expense for most households. Imagine the relief of being able to focus on getting yourself better, rather than worrying about when you’ll be able to get back to work again to bring some money in.

Of course, it’s not cheerful to dwell on this too much, and maybe that’s why we go about our daily lives with a cloak of optimism around us…. but when others are financially dependent on us – our children, our partner or maybe our elderly parents – this responsibility brings the issue into sharper focus.

In the very tragic event of someone dying young, having life assurance to pay off the mortgage is a great help to those left behind. They can then remain in their home without worrying about having to repay the debt in full (which the mortgage lender can demand), or whether they can afford the mortgage repayments on their own….and it’s worth considering having life cover beyond just the mortgage lump sum, to provide additional funds for living expenses.

So, the moral of this cheery story today (!) is that I urge you to think about what Protection you have in place and whether its sufficient….if not, take action with your Financial Planner !. Please don’t leave it to chance, thinking it will never happen to you or your family, because unfortunately it might…..

To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax Planning, please contact Amanda Redman on 07801 045587, email [email protected] or visit www.amandaredmanfp.co.uk

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Annie Ashdown
Coach: Annie Ashdown | Life Executive and Clinical Hypnotherapist

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