Essentially there is an awful lot of overlap with mortgage protection planning. We would suggest your mortgage is number 1 priority but for additional peace of mind family protection is important.
You have children and one of the parents prematurely dies, the financial consequences would be severe. The permanent loss of income to the family can make even the simple household bills unaffordable. Even if your family has one breadwinner and one parent has home carer responsibilities it is a common trap to feel that only the breadwinner needs insuring as the homecarer “doesn’t bring any money in”. However, if the home-carer was to die, how would the survivor carry on working with the new additional duties of looking after children, they may have to reduce working hours or even worse, give up working completely.
Family protection can be provided by taking out additional policies to provide either a cash lump sum or a regular income in the event.
Here at Financial Fortress, we don’t just guess at your needs. We have years of experience using tried and tested formulae to help provide necessary lump sums in the event and your adviser will work with you to make a personalised recommendation providing the peace of mind required. We never guess your needs to get a sale! An example may be:
Child aged 3 and you feel they will remain financially dependent until age 21 and the income required is £10,000 per year.
The simple maths are 21-3 = 18 year term. £10,000 x 18 years = £180,000 policy needed.
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