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What happens to your loved ones when you die?:

So many people are being diagnosed with a life-changing illness such as cancer, heart attack, stroke or you may have an accident where you may not be able to go back to the job you are doing.

Would you lose your home as a result? Do you have anyone you could turn to financially?

The most common types of insurances we may take out in our lifetime:

      • Car insurance
      • Home insurance
      • Contents insurance
      • Mobile phone insurance
      • Travel Insurance

 

What about insuring you, your ability and capacity and earn, what happens if you can’t carry on working? How long can you survive on your own with no money?

If you are married, with children and have a mortgage on your property and you die or become critically ill, can your partner carry on paying the mortgage on your family home on a single income? Death is unavoidable, but with the right planning, we can ensure that our loved ones have financial security in place.

Case Study:

Joe & Melanie have a mortgage on their property and two children who are 10 and 13 years old and are both, in full-time education.

Sadly, Joe’s brother Richard had passed away unexpectedly at the age of 32 from a heart attack. He had a wife, Emily and a two-year-old daughter. Life Insurance was recommended; however, the couple decided not to take up the recommendation. Following Richard’s sudden death, Emily was unable to pay the mortgage, nursery costs and other living expenses on her salary.

Emily and her daughter could not pay the mortgage and had to sell the family home and relocate from London to Exeter to live with her parents.

Death can be sudden and unexpected and leave the remaining family members in a state of shock and in Emily and her daughter’s case financially drained. Emily would never have imagined that she would be a single mother at the age of 30, and have to relocate to a different part of the country and settle both, herself and her daughter in a new environment.

When Richard was alive, they did not have any discussions on what would happen if either of them passed away. They thought they had a long and happy future ahead. Joe does his best to support Emily and his niece, but he has financial commitments of his own. When Joe and Melanie discussed their future and what they wanted for their family, they spoke to a Financial Advisor, who advised them to take out Income Protection, Critical Illness & both mortgage and personal Life cover. 

Before this happened to Richard, neither Joe or Melanie believed in Life Insurance for themselves. Unfortunately, it sometimes takes a very severe and tragic event in your life to realise what is most precious to you.

Published April 2020

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.