Protect Your Finances
At times like this, it’s all about personal protection. There is reduced public support for those affected by job cuts. If you want to protect your lifestyle, it’s possible without relying on the state. It will protect you and yours, and it need not dent your take home pay if done smartly…
- There’s mortgage protection. This kicks in when your income gets hit by redundancy, accident or health problems. It covers your mortgage payment every month to keep a roof over your head.
- Or there’s lifestyle protection. This replaces not just your mortgage payment, but the income level you need to keep your standard of living going. You don’t even need a mortgage to have this cover, and it’s available to the self-employed and part-time workers too.
Do you need it? The question is: if you lose your income, how long will you be able to continue your monthly living costs? Many state benefits don’t kick in for months, and they’re not what they used to be (mortgage interest relief has just dropped dramatically).
Most people don’t have 6 months savings to live off — and losing your home is unthinkable. Both the above policies can prevent this dangerous gap from appearing.
Can you afford it? Yes, because we can be smart about it and fit it into your existing budget. If this cover was ‘yet another expense’ it’s clearly coming at the wrong time. Instead, there are two or three ways to do this that ensure you’ve got protection and are still better off each month.
For example: many people are paying far too much for life insurance. Premiums have come down dramatically in recent years, so we can often make a saving there that will more than pay for income protection as well and still leave you better off. When I advise a client I always look at the bigger picture.
Another way to do it is to specify a time delay in your cover, so that it kicks in when any redundancy money or savings might run out. Just when the benefits system would leave you floundering, your income replacement will kick in and tide you over. This brings the cost of cover right down.
The definitive way to answer this question is to get a quote – call me on 01275 849059 | 07788 418119, or e-mail me.
When should you act? If you are going to protect against redundancy, there’s no point in waiting: once redundancies are already announced, that will void the unemployment part of your cover.
How long do you need it for? You don’t have to keep cover like this a moment longer than you want it. When circumstances improve, cancel it!
Ask me for an illustration of likely premiums for income protection. In ten minutes you will find out the costs, and you could be sleeping a lot easier while so many jobs are at risk. E-mail me today or enquire online.