Protection for less than the price of a take away a month

Taking out protection gives you security and peace of mind. It also gives you options, which, when it comes to your finances (especially now, while things are so volatile), is what all of us ultimately want. And when it costs just a few pounds a month, surely that makes it one of the best investments around.

One of the most important parts of financial planning is the foundations and ensuring you have adequate protection laid down is very much part of that.  If you had something in your house worth £1million, you would insure it, so why not insure yourself?

The interesting thing is that when we ask people that exact question, the usual reply is ‘cost’. Cost is undoubtedly the biggest barrier to taking out income protection or life assurance. But the reality is that for less than the price of a take away a month, you can get decent cover for yourself and your family.

It’ll cost you less than you think

Level Term Assurance (Life Cover only), sum assured of £100,000 to age 60

Monthly PremiumTotal Cost over policy term
Age 20£4.01£1,924
Age 30£5.56£1,965
Age 40£8.00£1,920
Age 50£12.36£1,483

Level Term Assurance and Critical Illness Cover, sum assured of £50,000 to age 60

Monthly PremiumTotal Cost over policy term
Age 20£9.91£4,756
Age 30£14.03£5,050
Age 40£22.09£5,301
Age 50£39.12£4,694

NB – These figures are intended to be examples only and are based on a non-smoker, both male and female.  Any actual application would be quoted individually and subject to satisfactory medical underwriting.

As you can see from the above examples, it makes more financial sense to put cover in place as early as possible and a basic level of cover is always worth considering, even if you currently receive a generous employee benefits package. A sudden redundancy, a move to an employer who does not offer the same level of benefit or switch to self-employment can suddenly leave yourself and your family vulnerable. 

There’s the right kind of cover for everyone

Indeed, we strongly believe that everyone should consider protection, even those who don’t have a family or mortgage and we wrote about the reasons for getting this kind of protection last year.

What’s more, there are many different types of protection, all of which provide either yourself or your family with options should you become seriously ill or pass away.  Suffering a serious illness can make people reassess their lives and what they want to do.  For example, you may be forced to return to your current occupation on recovery from a serious illness, if you still have a mortgage to repay.  Having the option to pay it off and do the job you always dreamed of or retire early could be life changing.  

Alternatively, allowing a surviving spouse to repay all outstanding debt and be relieved of financial burden creates options and gives them freedom at a time when that is exactly what they need.  For example, they can afford to stay in the family home or to stop work for a period of time to readjust or to care for children. From our perspective, we don’t think you can really put a price on that, so please do get in touch if you would like to discuss your options.