Posted by & filed under Critical Illness Cover, Income Protection, Keyperson, Life Insurance, Protection - Insurance.

life insurance, buildings and contents, critical illness cover, phone cover, car insurance

The Department for Work and Pensions (DWP) calculate that on average over the last 10 years, 2.6 million people have been off work for over six months and are reliant on benefits.
That’s 1 in 10 of the workforce – and with government Employment Support Allowance (ESA) less than £100 per week, someone with a salary of £30,000 would suffer an eye watering 77% fall in income making it impossible in most cases to meet monthly financial obligations.

So it’s crystal clear that we need to protect ourselves and our family financially, but with all the different types of policies available how do we choose what insurance is needed and the level of cover required?

Well the first thing to do is look at your finances and ask yourself:

What debts do I have?
What savings do I have?
What dependants do I have and what are their needs?
Do my dependants also need cover of their own?
What other financial commitments do I have?

You should be able to come up with some figures around what monthly amount is required to cover all expenses and live comfortably if you are critically ill. You should also be able to come up with the amount of funds needed to clear all debts in the event of loss of life.

Ask yourself, if I was unable to work for 1, 3, 6, 12, 24, 36 months – how would I make my financial commitments and similarly if you have a spouse, vice versa?

Look at the cover you already have in place. Do you have company benefits that could provide a level of protection? Could you access your pension early? Do you have access to any other funds? Where are the gaps in cover?

It’s worth remembering that insurance products have changed a great deal in the last few years, so if you put cover in place years ago, revisit it and ask “how relevant is this for my life today?” Your circumstances might also have changed and your policy will need updating to reflect this.

Why is life insurance so important? “You never know what life is going to throw at you, the unexpected can, unfortunately happen”. Click here to read our client chris’ story on when having the right cover in place matters most.

Credius offers expert honest advice and will perform a thorough analysis of your circumstances and provide recommendations for free. For more information click here to visit our website. To ensure you have the best policy in place for you and your business, why not contact us today via or call on 020 7562 5858.
Next time – What you must tell your insurer and what you need to ask

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