We all know that at the moment money is tight and times are hard. We are all looking at our outgoings and trying to decide which monthly expenses we can do without paying. How ironic, then, that with our financial security being at risk, often the first expense to get the cut is life insurance.
With my background in finance, it never fails to amaze me how some people go about assessing what is important to them. That priority be given to a Sky TV contract over a life insurance policy is nothing less than astounding to me. It is for this reason, and the fact that a lot of my clients are seeking advice before making any cutbacks, that I feel this article to be of utmost importance.
A story was related to me once about a man who had a fatal car crash while returning home from work one evening. The car he was driving was a complete write-off and so subject to a full insurance claim. A few weeks later two insurance men walked up the widows driveway with two cheques, one for 20,000 and the one for 25,000. The cheque of greater value was not for the deceased life insurance policy but for his motor insurance.
What you need to ask yourself is, what the widow would have found easier to replace, her husband and his support or a flash car. I am sure you see what I am getting at. The sad fact is that nowadays materialistic value supersedes personal value. With people trying to make cutbacks financially, they tend to put their possessions ahead of themselves when thinking towards the future, without giving thought to the consequences.
If you happen to be in the situation where you are analysing your expenses and are trying to decide whereabouts to start trimming the fat bear this in mind before you consider your life insurance. You took out your life insurance policy for one main reason. That if anything were to happen to you in the future, your family would be taken care of financially. Especially now that the credit crunch is bearing down on us, it must surely make sense to anyone who give it thought that continuing your policy is much more important to both yourself and your family than being able to watch the latest American comedy on cable.
Now this article is not meant to be scaring anyone into keeping on your life insurance payments. Scaremongering is not part of my business. What happens to you and your family is of little concern to the likes of me. What I do know, however, is that as a professional financial advisor, I deal with bereaved relatives on a day to day basis. Some of the deceased have life insurance, often not much, and some have none at all. What they all have in common is that they all say they wish they had planned better for the tragedy that has befallen them.
I can only give advice to people face to face if they knock on my door, but hopefully by writing these articles I can reach a larger audience in order that the right choices be made when planning ahead.
What it all really boils down to here is that if you are considering your options and thinking that way may be saving by canceling a policy then seek advice before you make that step. By going to a financial adviser you will be benefiting from professional advice on what is an extremely important topic. Remember also that if you have had any health issues since opting for a life insurance policy, by canceling it now you may find it a lot harder to get another one in the future. As well as this, if you need to cut back money wise, a financial adviser will also be in the position to advise you on alternative policies that may be available. These may cost less than what you are presently paying and, whilst they might not give you the same level of cover as you have at present, they will assure you and your loved ones some degree of protection for the future. The bottom line is that there will be something in the future to fall back on.