Are you doing enough to protect yourself, your family and your assets?
After an emergency fund and debt management control protection is the next most important facet of a sound financial plan.
A recent Scottish Widows report looked at mortgagor’s protection, to see how many of us are properly protecting ourselves.
The report shows that whilst mortgage holders are better than most, there is scope for improvement. The key findings include:
- 19% said they had no idea how they would cover their household bills if they or their partner were unable to work due to incapacity, serious illness, an accident or death.
- Only 7% of mortgage holders have income protection insurance.
- 64% of mortgage holders believe their employer will pay them a full salary or a full salary followed by a partial salary if they are off work for a long period of time.
Why is it important?
Protecting your home, and your place in it, is about protecting your way of life and everything you’ve done to get to this point.
You probably carefully chose the area and property you live in. To be near a good school, your work or family is very important.
To properly protect all of that for yourself and your family should seem obvious.
But the figures suggest otherwise.
Unforseeable events can have a devastating effect on household finances.
Insuring against them should be a priority.
We suspect most households spend more on mobile ‘phones and satellite TV than they do on protecting their incomes, their assets and their families.
That seems a bit daft doesn’t it?