Most of the people I meet want financial advice and, therefore, know the value of saving for retirement. However, when we talk about putting income protection in place, it is seen as ‘dead money.’
This is what I say to anyone who is sceptical about safeguarding their earnings: There is no point making plans for retirement, unless you look after what you already have.
Those clients with life insurance think this is sufficient, but the chances of passing away prematurely are far, FAR, lower than being unable to work due to accident or illness. This is where income protection can help.
Luck of the draw
Too many people have the ‘it won’t happen to me’ mentality. In our younger years, we think we’re invincible. Unfortunately, in my relatively short time as a financial planner, I can assure you the worst DOES happen and can happen to anyone, regardless of age or health.
I admit, I was guilty of being part of the ‘it won’t happen to me’ gang, as I considered myself relatively young and fit. But, after seeing clients fall ill, I recognised the need to put some protection in place. As it happened, my age and good health was actually a benefit, as it made the insurance very cheap!
If you had a machine at home that printed money each month, would you insure it? Of course, you would! Well, think of yourself as the money-printing machine – are you insured? The majority of us have house, car, phone, pet and holiday insurance. Some people even insure their body parts! So, for a small additional monthly fee, why would you not protect your income?
Minimal costs
Just for a moment, stop to think how you would live if you were unable to work. If you are lucky enough to have supportive parents, they might be able to bankroll you for a while, but what happens after that? The government will help, but benefits are usually only a couple of hundred pounds a month.
We can put you a policy in place that will pay 60% of your monthly income, tax free, until retirement, in the event you are unable to work. This costs as little as £15 per month – in other words, the price of a couple of pints or a Netflix subscription.
For example, my own policy will pay me £1,400 per month until I am 65, if I am seriously ill or injured. All for £15 a month. I consider that a good deal.
Peace of mind
As with all insurance policies, if you never claim on them, you might look back and think that money could have been saved. If, however, you find yourself in a situation where you need income protection and it is too late, I guarantee you would pay whatever it takes to go back in time and put some cover in place.
If you would like to find out more about income protection insurance or the range of financial planning services I provide, don’t hesitate to contact me on (01246) 289191 or email: chris.pond@belmayne-ifa.com
