If I was a financial adviser I would make absolutely sure my income was protected!
Now folks, there are lots of types of insurance out there. We hear the ads every single day. Life insurance this, serious illness cover that.
Stop for a second and think about what you are prepared to insure.
Insurance is a simple thing really. You should, within affordable limits, pay a premium to cover an event that, should it actually happen, you could not afford to pay for yourself with savings.
Your family couldn’t pay off the mortgage if you died and your income would be gone so they couldn’t pay it back monthly themselves either. Hence mortgage protection makes absolute sense.
It makes sense to have a tax free pot of cash in the event of you being diagnosed with a serious illness. It just does. Trying to deal with a serious illness is hard enough. Don’t pile financial stress on top of that situation. Worth a few bob every month for not having to deal with that stress too.
On the flip side I am not a believer in Payment Protection. I don’t think it is worth it. It promises to replace a payment you are making monthly, like a mortgage payment often for maximum period, often 12 months. Not for me thanks.
I recently lost my iPhone 1 month into a 2 year contract. No insurance. Because you are simply paying for your iPhone through your contract for the full two years I will admit to being a recent gadget insurance convert. Buying a new phone is an expensive business. So €7.99 a month it is so I don’t have to face that again.
And this brings me to my main point. I am financial adviser. I have witnessed so many variations on the ways clients manage their finances. In essence it all boils down to a very simple formula. Money in, expenses out, savings if any remain, spend the rest, get paid again.
The one piece of this that binds the whole thing together is your ability to “get paid again”.
Please consider insuring this! It’s imperative you get paid for the long term. Single or married. Kids or no kids. You or you and your family are absolutely reliant on your ability to bring home the bacon.
I am not sure why this insurance type is not utilised more in Ireland but its not. Perhaps it’s not advertised as much but less than 15% of the population currently know that, should they get injured or ill, that they will have income to pay their bills for the rest of their career. Compare that with over 50% having some form of life insurance. A stark difference.
It’s a very straightforward and often inexpensive insurance. It simply replaces your income.
It qualifies for tax relief and pays an income for as long as you are out so as far as insurance types go this ticks most of the boxes.
It naturally comes in various shapes and sizes and that is our job to build the right plan around you, your lifestyle and your affordability but it is an absolute must!
So to bring this back to the title of the blog…Ask yourself if you were a financial adviser, would you advise your clients to guarantee their incomes, and then take your own advice.
As always we are happy to help! Just comment on Facebook to ask any questions, get in touch directly with me on firstname.lastname@example.org or call Kathy on 01 5310571 and we can arrange a call.