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Here's
the dilemma - should you pay for something that you
know you have absolutely no
chance of ever directly benefiting from? The logical
answer is 'No'. However, if we said that the
money was to pay for life cover, would that change
your reply? Only you know the answer to this, but
in many cases people would still say 'No'.
Excuses,
apathy or both
The two most common reasons given by people without
any life cover or insufficient levels of cover are
that they can't afford it or they don't need it. However,
almost all of us need life cover, regardless of how
wealthy we are. The simple fact is that most of us
live up to our means. Therefore, the more we have,
the more we have to lose! As for the argument that
it is not affordable - well, in most cases we can't
afford not to have it. In reality, the true reason
for individuals not having enough life cover is apathy.
Financial
hardship
It is estimated that many families have no life cover
or are under-insured, putting dependants in a potentially
very vulnerable position. Couples with families (especially
young families) have the most need for life cover.
If the main wage earner dies and has no protection
or insufficient cover in place for the remaining members
of the family, then severe financial hardship could
be just around the corner.
Who
will pay the bills?
Even if the mortgage is fully protected, the family
will still require an income following the death of
a breadwinner. They will still need to pay the household
bills and find money for family holidays, running
the family car, school fees and the usual day-to-day
living expenses. Would any of us really want our loved
ones to take a dramatic reduction in lifestyle for
the sake of a few pounds a day?
So,
looking at it logically, if we can find the money
to pay for our car, and our contents and building
insurance, then does it not make sense that we should
find the money to protect the one asset that funds
everything else - our own life?
The
Financial Services Authority does not regulate some
types of protection policies
article
dated 05/2003
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