Many people feel that they don’t need protection however, in reality they’re probably wrong.
If tomorrow you were unable to work due to a serious illness, disability or accident, would you still be able to meet your mortgage repayments every month? How you you pay to feed yourself and your family? More importantly, how long could you keep up you mortgage repayments as well as keep your family fed and warm?
Many people think, ‘it won’t happen to me’ or if it does, somehow the state will meet your financial requirement however, sadly this isn’t usually the case.
So what type of protection may you require now?
Young person – most likely to live at home with parents and have little financial responsibility, in this case there may be lesser need for protection although that doesn’t mean there isn’t any requirement at all.
Adult, single or married with a mortgage – At this point in life, there is usually at least one wage coming in and each month in order to manage repayment requirements and housing costs. They run one or maybe two cars, have an active social life and/or enjoy travelling. If there was suddenly an unexpected loss of income, how would that lifestyle be maintained or the necessary repayments be met?
Couple with a family – Just as above with the additional financial responsibility of a child or children. In this case, there may be one or two wages coming in. If there is only one form of income coming in and the main wage earner is suddenly unable to work due to long term sickness, accident, disability or serious illness how will that family survive in terms of keeping up their mortgage repayments as well as look after their child(ren)? If there are two sets of income and it should be reduced to one, could the financial requirements still be met? If so how long for?
Later Life – Any mortgage would most likely have been repaid and the financial outgoings reduced overall. Although there may be less financial requirements in this stage of life it’s worth noting that income is likely to have dropped and the individual may be reliant on pension income and state pension. In this case, they may be able to meet their financial requirements but very often people in later life choose to save or put aside some money to cover any future funeral expenses.
If you’d like more information on protecting your family, your lifestyle or your income simply get in touch with us here at My Finance Friend, we provide mortgage and protection advice both in your own home, workplace or our offices, whichever suit you.