How to work out what family insurance you need.

It can be so hard to find the time you need to do the things you need to do. We all know family insurance is vital but having enough hours in the day to research all the options available, work out what types of cover are worthwhile etc. can be tricky.

In order to try and save you time a family insurance tool has been developed by Drewberry insurance to help you to understand the financial risks you face and suggest useful policies to cover those risks. How handy is that!

I was commissioned to review how useful it really is.

Based on the information you input into a questionnaire , the tool helps to identify if these plans would be right for you and  it will also provide some guidance on what specific policy options to select, such as how much you should look to be insured for. It sounds helpful!

Well I filled in the details (only took a minute or two and the results were in .

First it congratulated me on building up some saving s apparently only 60% of families could survive 3 months or more on their savings. That felt good.

Then it got down to business…..

Income protection insurance

The tool recommends as I have no employer to give me sick pay I should seriously consider income protection insurance. Statutory sick pay is only £10o0 per week and this could make all the difference to me. and pay out up to £1000 per month to the end of my working life. I had never considered this but the risk of me falling ill for 2 months or more at my ripe old age till retirement is a rather massive 28%. Food for thought indeed.

 

Morgage life insurance

Then we move onto mortgage life insurance which would pay out on event of my death before 65 and cover the rest of our mortgage cost so as to help our families. My chance of dying before retirement is 8% !! (I am quite shocked by that) and actually I do want to leave my kids protected financially so again lots to explore and think about.

 

Family income protection

Next to be considered was family income insurance which should I pass away before my kids are 21 they will be provided with a regular monthly income. Again I had not considered this.

 

In conclusion…

Gosh stuff to think about that may be uncomfortable but that is actually really really important and that i haven’t really given enough thought to in the past.

I love the fact I feel I have just had a financial advice session without actually paying for it or leaving the house. The probability calculators were useful enabling me to see the actual risks involved. Facilities on the tool allow you to get an instant quote or speak to an expert for further advice . What a very useful tool!

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