Friday, 6 June 2014

Why insurance is important for families

Ok, so I know that insurance is not a scintillating topic, but it is important and hey this is a financial blog, so there!  Yes it seems like it is something you payout and never get back on,  but I for one know just how essential it is to be appropriately insured.

Since becoming a mum, we have had to claim twice on two different insurance policies, once four years ago when during a rather severe winter snowfall our conservatory roof collapsed and once when our washing machine just kept filling up with water when we were out and we returned to a kitchen flooded with water!

Drewberry Insurance know that protecting our family is important and it is hard to find enough hours in the day to research all the options available, work out what types of cover are worthwhile and get those plans set-up, so they have developed their new family insurance tool to help out.

It aims to help you understand the financial risk you face and help by providing you with suggestions for policies to help cover those risks.

It helps you think about the core areas that families typically look to protect and often include the following:
  1. Income Protection Insurance - This is about protecting the income that puts the food on the table and pays the bills.
  2. Mortgage Protection Insurance - This is about protecting the income and covering what is often our biggest investment.
  3. Family Income Benefit - This is about providing your family with an income come what may.

Based on the information you input, not only will the tool help to identify if these plans would be worthwhile for you, it will also provide some guidance on what specific policy options to select, such has how much you should cover and how long the policy should run.

Sometimes it is really hard to focus on what is important to us as a family and this tool gives you a basis to start a conversation, which I think is fantastic.

As always it is important to discuss any policies you take out and I recommend talking to an Independent Financial Adviser, which is often free.

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