Here’s two words designed to strike a chill into the heart of anybody who likes to keep a tight rein on the pennies:
It’s a popular conception that life insurance is just a gamble…indeed, in some cultures that is exactly how it is perceived.
Well, is it?
It’s an unfortunate fact, that every step you and your loved ones take through life incurs risk in one form or another. We hope bad stuff won’t happen to us, and thankfully it usually does not. But we would be blind, and frankly pretty dumb, if we did not recognise the precarious reality of our everyday existence. So here is a sentence to dwell on…
Life Insurance, peace of mind as you play the hand life deals you.
Hold that thought for one moment.
This month’s newsletter is an introduction to rethinking this profoundly important financial service. Next month I will go into detail on the increasingly innovative range of products in the life, critical and serious illness pure protection market, but for now, let’s get our head round the basic message:
Mortgage and Protection Advisors, such as us at Clarity have a compliance obligation (call it a defacto legal duty of care, if you will) to assess our client’s protection needs and advise them accordingly.
So much for the compliance obligation, what about the moral one? We are well aware that many, many people are simply uncomfortable, to the point of distress, discussing this subject. And if you think about that for a moment, that simply increases our obligations and responsibility. For all those amongst us who – understandably – hate to discuss life and all its inherent risks somebody needs to step up, raise the subject and hold the conversation. If not qualified, regulated professionals such as us, who else…the noisy know-it-all down the pub?
The reason I like the “peace of mind” quote above, is because it allows us to rethink the product we are buying. It becomes less of a gamble in our head, and more simply an ongoing premium (often much smaller than people imagine) that you pay for continual peace of mind as you and your loved ones get on with life – a sort of, “don’t worry, I’ve got your back” service.
And if that does not help you rethink it, here’s a few blunt points that might:
- The UK is moving evermore towards a “self-help” culture. If you think the government will have your back in the event of death or illness related hardship, you are way off base.
- Maths is reality. Insurance underwriting is a mathematical process. The younger you are the more products (especially illness-related) will be available to you and your family, and at much reduced expense. – insure young!
- 1 in 2 people born after 1960 in the UK will be diagnosed with some form of cancer during their lifetime (Cancer Research UK). You can now insure against the financial consequences of almost any cancer, including the less threatening ones.
The list goes on, but I’m not here for the hard sell – that is never our goal! Frankly, I don’t enjoy writing this stuff anymore than you enjoy reading it, but here’s our commitment to you:
When we discuss protection, we will do so with uncompromising professionalism, without fear or favour, and under the ever-present eyes of our compliance network.
One final thing…how much do we charge to review, analyse and report on your life and illness protection needs? Nothing. Zilch. Nowt. Zip. Zero charge and zero commitment to assess your protection needs…ever. It’s our job and it’s our obligation, both moral and statutory.
Please come back next month and read Part 2, when I detail main protection products available on the UK market and what they are designed to do.
All the best,