I was enjoying a relaxing catch up with a few friends last week.
After the obligatory “What have you been up to’s” had been asked and answered, the conversation moved onto much more pressing matters;namely, what did everyone think about the School’s decision to change the lining up procedure at the morning drop off? And should the local post office consider extending it’s opening hours? The joys of village life!
It wasn’t long before we were answering questions about favourite bands, movies and football teams, but it was the final question that stopped me in my tracks.
“What is your happiest memory?”
It’s a question I have been asked before, many years ago and while my favourite band, movie and football team have remained unchanged over the years, I realised that my happiest memory had been replaced!
Had I been asked the question 10 years ago, my answer would have been memories of climbing trees and spending time in the summer holidays with my Mum and Dad. It was a simple memory, but it is one that conjures up warmth and happiness as it was a time when our whole family had the chance to be together and just relax and have fun. The answer to that very same question now is a very similar one, but my parents have been replaced by my children and it is my children that are climbing the trees, not me.
In childhood, our parents are the most important thing in our lives, but as we grow older and become parents ourselves, our children become the main focus. How many times have you heard the phrase “I would do anything for my children” or “My children are my life”? Why is it then that parents are not putting their children first when it comes to protecting their future?
During that same catch up with my friends, I asked them how many had life insurance and only two out of five said that they did. All of them had insured their phones and unbelievably three had insured their pets, yet insuring their own lives seemed less important somehow. All of my friends understood the importance of covering their mortgage should the worst happen but I was shocked to discover that none of them understood the true effect of losing the main wage earner and the devastating effect it could have on the family finances.
Having specialised in life insurance for the last 14 years, I was in a good place to give them some advice on the level of cover they should consider. I have also provided some tips below and if you are at all unsure or require some further information or advice I would recommend that you speak to an independent specialist such as LifeSearch. They can make sure that you are selecting the right cover for you and they can ensure you are getting the cover at the best possible price.
- You should consider roughly covering 10 times the annual income of the highest earner until kids have finished full-time education.
- You don't need life insurance if you don't have dependants, consider something like Income Protection instead.Consider writing your policy into trust. (It will pay out quicker and the taxman will not receive any of the proceeds)
- Two single policies can be better than joint cover.The less risk you are, the cheaper the cover. (Risk factors include health, family history and occupation types)
Call LifeSearch on 0800 316 3166 to get a tailored quote.