What would the future hold for your dependants?

A failure to invest in life assurance could have disastrous consequences for your family. Those who die in middle age could leave their dependants facing a very hard future unless they make adequate plans. Despite this, many families have little or no life assurance cover. Swiss Re, the reinsurance company, says that there is a £2,300 billion life assurance gap.

The first time that many people think about life insurance is when they buy a property. Taking out enough to cover the cost of the mortgage is fine, provided that you have no dependants. As soon as children come along, the situation is altered dramatically.

It is not sufficient just to cover the mortgage, which may account for only about 30 per cent of the household expenses. The question is, ‘How would the family manage to pay for the other 70 per cent?’

The cost of replacing you 

We can help you calculate how much cover you might need. This could be based on a lump sum figure or regular income, or a combination of both.

A lump sum is likely to include the total value of your liabilities, including the mortgage and loans. A look at your bank statements will give an indication of the level of regular income required.

Alternatively, you could clear any liabilities with a lump sum and provide a monthly income to your family.

Don’t leave it to chance. If you would like to review your current protection provision, please e-mail or contact us for further information.

Article date: March 2007