Why Family Protection Matters: Understanding the Importance Beyond Mortgage Protection

At a meeting the other day I was discussed protection cover. In this case I was recommending a life policy that would pay out and leave some money behind if my client was to fall off the peg. The man I was with asked – sure I have mortgage protection why do I need more life cover????

I stood up walked over to the back door of his kitchen and pointed at the shoes and said here are 3 good reasons why!!!!. What I did not start explaining about indexation and conversion options or free terminal illness cover. These features come with many plans but never reason alone to take out a plan.

Mortgage protection at the end of the day just gives the bank back its money that you have already spent in buying the house.

Family protection provides your family with a means of replacing your future income. So the cover should be enough to replace the cash you haven’t even earned yet. Because it could be paying for your kids school fees, school uniforms, Future holidays, household bills, university fees, even maybe their wedding.

I know as a dad of 2 girls as much as I want to dance with them on their big day. If I am not around for some reason I want to be able to at least pay for it. (within reason…if my daughters are reading this…there is a limit now girls). I have two small life plans in place one for each of my daughters just to pay for their wedding.

If you ain’t around to earn the money where do you think it will all come from.

You might think sure isn’t their a widows pension. Check out this link Widow’s, Widower’s or Surviving Civil Partner’s (Contributory) Pension (citizensinformation.ie). Then lean over to your other half and say honey if I died could you live on this. If they say yes, you should start to get worried, if they say no then you need to get in touch.

Let’s just say the man involved seen the light arranged a plan to ensure his children’s financial security. He now has a second policy in place to protect his children. All for less than 20 euro per week.

If you want to protect your family email Richard@ferrisfinancialplanning.ie

Thanks

R