Life Insurance- Or Reverse Lottery?

Reverse Lottery – is it a game worth playing?

I read the other day that ‘not having insurance is like a reverse lottery. You gain a little money every day, with the possibility of losing big!'

When asked ‘what is your most important asset?', most people respond: ‘my house' or ‘my pension'. What about YOU? After all, if you were unable to work, or you passed away, your family home or retirement plans would likely be unaffordable.

As a contractor, your livelihood, and therefore, the livelihood of your family, relies on your ability to earn an income. However, many contractors have no arrangements in place to cover them if they are off work or pass away.  It is essential that you value yourself as your most important asset!

There is currently a significant and concerning protection gap[1]in the UK.

• 47% of people do not have life insurance;
• 77% do not have critical illness cover; and
• 78% do not have income protection

 

Why is there a gap? It may be a perception that insurance is expensive, or it may be because we undervalue our financial importance to our family. If you are concerned about the cost, consider the alternative.  If you are not here and you have no insurance:

• What does that mean for your family finances?
• Where will your family live?
• What will be their source of income?

We insure our house, cars and, often our pets. Have you invested the same amount of time and care in protecting your family or yourself?

So where do you start? In the first instance, you need to sit down with an expert to identify your priorities. You can then build a plan focused on:

1. In which areas are you unprotected?
2. Which areas would you like to protect?
3. Which areas do you needto protect?

Playing the ‘reverse lottery’ may save you money today but, if you lose, the consequences to your income and family could be devastating.

Waiting until you become concerned about your health will probably make you uninsurable, so take action today!

This article was provided to us by Geoff Day at Wilcox Day Wealth Management Ltd. Please note this does not imply endorsement by us.

You can review further articles that may be relevant, please visit  www.wilcoxday.co.uk/contractors

Wilcox Day Wealth Management Ltd is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's wealth management products and services, more details of which are set out on the Group's website www.sjp.co.uk/about-st-james-place/our-business/our-products-and-services. The 'St. James's Place Partnership' and the titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.

[1]State of the Protection Nation research, Royal London, January 2018. 2,002 people asked, results weighted to nationally representative criteria.