In these times of financial insecurity people are being forced to analyse their monetary standing with the view tighten their belts wherever possible. Bizarre as it may seem, one of the first things to be discarded when looking for ways to ease their outgoings is one of the most important with regards to future financial wellbeing, Life insurance.
It never ceases to amaze me how misplaced some people's priorities can be when it comes to where their money goes on a monthly basis. Many people actually look on their gym membership or Sky television costs as being more important to keep up than their life insurance! Therefore I, as a professional financial advisor, feel it is imperative to write this article about where the cutbacks in spending should be made.
A story was related to me once about a man who had a fatal car crash while returning home from work one evening. The car he was driving was a complete write-off and so subject to a full insurance claim. A few weeks later two insurance men walked up the widows driveway with two cheques, one for 20,000 and the one for 25,000. The cheque of greater value was not for the deceased life insurance policy but for his motor insurance.
The question to be asked here is, with these two cheques, what do you suppose the widow is in a position to replace first, the support given by her husband or his flash car? Sad but true. What I am trying to get across is that we have become, as a nation, more preoccupied by the value of our things that we are undervaluing ourselves. This is particularly evident now when cash flow is a pressing issue for everyone.
So you are looking at your income and outgoings and you're wondering "do I really need to spend this money every month on life insurance?" Well in my opinion it is simple, if it was worth buying in the first place then it is more than worth keeping now. In fact you will probably need it more. If times are hard for your family right now with your income coming in, imagine for a second what it would be like if you were not here and you family did not have the benefit of your income. I tell you now times will be a lot harder and the luxuries of the likes of Cable TV and Sky TV will then be the first things to go.
Now this article is not meant to be scaring anyone into keeping on your life insurance payments. Scaremongering is not part of my business. What happens to you and your family is of little concern to the likes of me. What I do know, however, is that as a professional financial advisor, I deal with bereaved relatives on a day to day basis. Some of the deceased have life insurance, often not much, and some have none at all. What they all have in common is that they all say they wish they had planned better for the tragedy that has befallen them.
Of course my advice would be that almost all of us should have adequate life insurance sorted out from the outset. Unfortunately, I can't advise everyone, and it has to be an individual choice to take insurance out, but hopefully this article will push some readers in the right direction.
One thing I would definitely urge is that if you are finding money tight, which of course the majority of us are in the present climate, and you are considering doing away with your life insurance in order to free up some extra cash, please do one thing and consult your financial advisor before taking any drastic action. You may not know that if you have had any health issues since originally taking out the plan and you then stop the plan, you may not be able to restart the insurance plan in the future. You could even consider the possibility of transferring to a cheaper plan. It may not give the same amount of protection as before, but it may save you a bit of money in the meantime, and at least you will be partially protected, which is the important thing after all. - 15275
It never ceases to amaze me how misplaced some people's priorities can be when it comes to where their money goes on a monthly basis. Many people actually look on their gym membership or Sky television costs as being more important to keep up than their life insurance! Therefore I, as a professional financial advisor, feel it is imperative to write this article about where the cutbacks in spending should be made.
A story was related to me once about a man who had a fatal car crash while returning home from work one evening. The car he was driving was a complete write-off and so subject to a full insurance claim. A few weeks later two insurance men walked up the widows driveway with two cheques, one for 20,000 and the one for 25,000. The cheque of greater value was not for the deceased life insurance policy but for his motor insurance.
The question to be asked here is, with these two cheques, what do you suppose the widow is in a position to replace first, the support given by her husband or his flash car? Sad but true. What I am trying to get across is that we have become, as a nation, more preoccupied by the value of our things that we are undervaluing ourselves. This is particularly evident now when cash flow is a pressing issue for everyone.
So you are looking at your income and outgoings and you're wondering "do I really need to spend this money every month on life insurance?" Well in my opinion it is simple, if it was worth buying in the first place then it is more than worth keeping now. In fact you will probably need it more. If times are hard for your family right now with your income coming in, imagine for a second what it would be like if you were not here and you family did not have the benefit of your income. I tell you now times will be a lot harder and the luxuries of the likes of Cable TV and Sky TV will then be the first things to go.
Now this article is not meant to be scaring anyone into keeping on your life insurance payments. Scaremongering is not part of my business. What happens to you and your family is of little concern to the likes of me. What I do know, however, is that as a professional financial advisor, I deal with bereaved relatives on a day to day basis. Some of the deceased have life insurance, often not much, and some have none at all. What they all have in common is that they all say they wish they had planned better for the tragedy that has befallen them.
Of course my advice would be that almost all of us should have adequate life insurance sorted out from the outset. Unfortunately, I can't advise everyone, and it has to be an individual choice to take insurance out, but hopefully this article will push some readers in the right direction.
One thing I would definitely urge is that if you are finding money tight, which of course the majority of us are in the present climate, and you are considering doing away with your life insurance in order to free up some extra cash, please do one thing and consult your financial advisor before taking any drastic action. You may not know that if you have had any health issues since originally taking out the plan and you then stop the plan, you may not be able to restart the insurance plan in the future. You could even consider the possibility of transferring to a cheaper plan. It may not give the same amount of protection as before, but it may save you a bit of money in the meantime, and at least you will be partially protected, which is the important thing after all. - 15275
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