Protection – Where value really does outweigh the cost
In these increasing cost-of-living times, of course we’re all looking to save money and cut back on monthly outgoings. I have heard so many times ‘I don’t think I need the protection anymore, it’ll be fine, we’ll manage’. I have seen both sides of the story on this one; clients who are over the moon that they took a plan out, maintained it, and able to make a claim….and sadly the ones who wished they kept their plans and are in the awful position of having no financial support when the worst happens.
LV have recently carried out research which shows that “45% of 25-44 year olds without a protection policy claim they are not confident about their financial stability were they to succumb to illness”. Moreover, over a quarter (28%) of workers in this age group would struggle to pay household bills if they were unable to work for two months or more. Half also say their partner relies on their income, and they need both incomes to cover their monthly outgoings.
Ask yourself, honestly, how would you manage? I understand that so many households are experiencing a shrinking disposable income, which only makes protection even more vital. Having protection in place can create financial resilience, and provide the support needed due to life-changing illness or loss and the inability to work that may follow.
Here comes the numbers bit:
- LV paid more than £20m in critical illness claims between January and September 2022.
- More than 258 people were supported after they received a life-changing diagnosis, including 14 child critical illness cases with claims totalling £360,000.
- The youngest person to make a critical illness claim was 22 years old, while the average age to claim is 48 years old.
- The most common causes for critical illness claims were cancer (57%), heart attacks (13%) and strokes (7%).
- 41% of Brits don’t have enough savings to live for one month without income.
It’s not just mortgages that can make a positive impact, by having a home for you and yours, it’s also knowing your exact same home and family are protected if your circumstances take a turn you didn’t see coming.
As an adviser, I do my best to help clients understand the value of protection and make it a priority. Protection can bring you security, when life sometimes doesn’t.