When I am discussing protection needs with my clients, it is always interesting to see the “trends” that the industry has created in that life & critical illness plans are typically the main focus as they are most likely putting this in place to protect what they believe to be their biggest asset or most appropriately their biggest liability – the Mortgage!
I recently asked a client what part of her finances she wanted to protect the most and as per the trend, this client told me that protecting their home was of the highest priority & I agreed with this to a degree however, our level of planning is to prioritise protection needs, against a chosen budget. Using our cash flow modelling software, I went on to show the client her forecasted earnings between now and retirement age. This client was early forties and the forecasted earnings over this period was an incredible figure and in this particular example, heavily outweighed the value of the family home. Next step was then to show the level of income replacement that would be provided should my client be unable to work due to illness or indeed injury for example and again the figures were quite incredible with regards to the shortfall illustrated.
Ask yourself the question, what is your forecasted earnings between now and retirement age and have you insured a proportion of that figure against being unable to generate earnings due to either sickness or injury, for example?
Income Protection – a crucial element of comprehensive protection planning. Get in touch to find out more.
