I have often described our service as a sounding board. When we meet a client for the first time, we spend time discovering everything there is to know about their current financial situation. This includes what protection policies they have, if any.
Clients often say they are unlikely to die before the age of 50. But you can’t deny that it does sometimes happen. What would be the financial impact if you died before your time? What would happen to your loved ones if you became ill or injured and unable to generate income?
The evidence below shows the likelihood of making a claim on your protection policies.
Figures from the ABI show that the number of individual protection policies taken out in 2016 had decreased, although the number of group policies had increased. I have heard people say that these policies never pay out. But statistics also show that in 2016, 98% of all Life, Critical Illness and Income Protection insurance claims were paid.*
Legal & General reported that in 2017 the average age of a Critical Illness claimant was 47, and here are the top five conditions where Critical Illness claims were paid:
- Cancer 63.8%
- Heart attack 10.1%
- Stroke 6.4%
- Multiple sclerosis 5.1%
- Total permanent disability 3.6%**
The number of claims are also on the increase. AIG paid a total of £69m in claims for life and Critical Illness insurance in 2016 – that’s more than 49% more than the year before.***
Whether you have a financial adviser or not, it is important to audit your affairs every year. Ask yourself this question: “If anything had happened to you yesterday, where would you or your loved ones be today?”
Why not have a look at your cover today? Have a quick tally up of your assets and liabilities and the term of these, and work out if they would be cleared if something happened to you. Then consider any dependents who are financially dependent on you.
Or why not book an appointment? It’s the equivalent of a financial MOT. There are many different products on the market and we can go through the advantages and disadvantages of each with you.
At Monetary Solutions Ltd, you can book a free initial consultation about any financial matters, so please call us on 020 8655 8488.
*Association of British Insurers
***FT adviser 28 March 2017