Are You Insuring Your Money Making Machine?

When we think of insurance, we often think about the things we have to take insurance out for.

We have to insure our homes, we have to insure our cars, we might insure our mobile phones perhaps, if we take out a mortgage, sometimes the mortgage lender wants us to insure the debt in case we die.

Well that's fair enough isn't it.

But what about ourselves?

What about the most important thing to insure and that's the machine that makes the money. We are that machine.

All too  often in my career, when I sit down with my clients and have these conversations, they may have insured all of these other areas, but they haven't thought about insuring themselves over and above perhaps a mortgage debt.

If they die, if they have a critical illness, if they have an injury or an accident that prevented them from working, all of a sudden there's no income coming into the household.

If it's an injury or an illness, they are still having to be supported, but if they are no longer here through death, then their families are left with that financial burden.

One of the simplest things you can do is really consider what it is you need and putting a very small amount of your income away today to protect against that eventuality going forward and really giving you the peace of mind that you're leaving your loved ones in a far better position financially. 

In addition, one of the things that I find quite regularly is that we have out of date insurance policies. You may not realise that they've been taken out of your account every month via direct debit on things that you had insured decades ago.

Perhaps a mortgage that you protected with life income, life cover or critical illness cover, but that mortgage has increased and the cover you have is not enough. With the advent of new policies and new legislation, actually, you could find, you could cover yourself with the same amount for a smaller premium each month.

One of the things you can do to really help improve your circumstances is review some of these perhaps out of date insurance policies, but more importantly, talk about it, find an advisor who can help uncover what you may need and really consider putting something in place today, before it's too late.