Sshhh, I think I have managed to sneak this blog post in late without Cheltenham Maman noticing, so if we all keep quiet and pretend that it was here in time for the deadline we might just get away with it…..
I kind of have good reason as we have been busy with a month of birthday’s in the Hudson Rose household. The smallest member of our family celebrated her 1st birthday (see the pic in Babies, Bricks & Mortgages for cake action) and, more recently, our eldest reached ‘big boy’ status by turning 5.
We also had another birthday to celebrate (I nearly wrote ‘more importantly’ but its probably a bit of a stretch too far…) as Hudson Rose turned 1 year old! We have had an awesome year and helped lots of clients, new and old, reach their mortgage and insurance goals. To celebrate we are running a giveaway for an £80 Cote voucher so head over to our Instagram or Facebook to enter and you could be sipping Beaujolais and eating fine French cuisine on us. Winner winner… er…steak frites dinner?
As the years fly by, I have started to become more aware of the possibility that I may not actually live forever. A concept that my younger self would have found impossible to comprehend. To try and counteract this I have started going to some personal training classes. I think it is pretty much a forgone conclusion that it is only a matter of time before I obtain the 09:15am ‘keep fit’ slot on Lorraine Kelly’s show paying homage to the great fitness icon that is Mr Motivator. So watch this space….
Of course, this being a financial blog means that I am not simply here to tell you about my new-found love for lycra. We have been busy helping some of the Cheltenham Maman readership of late with enquiries about their insurance needs and one of the things that is often discussed is the risk of an event happening. Abstract ideas of what could go wrong are never ending and we must be hardwired as a species not to think about these risks. And with good reason.
I therefore wanted to share with you a little tool that we use to help illustrate risk. It is not intended to be scary, or create any panic, but it is a great way of showing where any budget for insurance should be spent. I take the view that as we all have a limited budget to spend on these sorts of things it surely makes sense to cover the most likely event first, don’t you think?
So, if you answer these five questions on the calculator below it might provide some insight as to how to structure your protection.
Now you are all back with me having had a go on the calculator above, what do you think of the results?
Surprised? (it would be great to hear your comments below!)
The data this is based on comes from a range of sources including LV’s (the insurer) own statistics as well as actuarial data on mortality and morbidity – a fun read if ever there was one! There are also some interesting questions posed at the bottom of the results page that shine a light on the reality of the help available from the government and other sources.
We can see from the results that income is the number one thing that should be protected for everyone regardless of whether you own your home or rent it. If the money stops coming in each month things start falling apart pretty rapidly when you can’t pay your mortgage/rent, gas, electricity, council tax and food bills.
It is always good to double check how much you have in savings against your monthly outgoings and calculate how long you could survive financially. Financial Adviser’s like me recommend a minimum of three months’ worth of savings for emergencies but the reality is, in practice, this is very difficult to do.
There are lots of different policies out there that can protect your income and, unfortunately, they come loaded with terminology like most insurance policies. We can cut through all that jargon and talk to you like normal people to make sure you have a top-notch policy offering the peace of mind and protection you require, at the right cost.
I always like to let clients know that I hold these products personally for my family and I am more than happy to discuss, with anyone who wants to know, my set up. I, like most people, have gaps in my protection so am not writing this as a professional who has it all sorted! Far from it, my resources are as limited as the next person and as such I have made decisions on where to take a risk.
The key thing is that you are aware of the risks and what it costs to protect against the event happening. Only then can you make an informed decision.
With it being Cheltenham Festival week, it is obligatory that I insert a gambling reference. Many of us play the lottery each week and many will also have this set up on a direct debit for £10-£20 per week. We know the chances of winning are tiny but we still play – after all it could be you, right?
Well, the calculator shows the risk of something not quite as fun happening is higher, so perhaps a bit of income towards that might be an idea as well? As, unfortunately, it too ‘could be you’.
As ever, drop us a line/FB message/email/carrier pigeon if you want to have a chat about it all. No drama or obligation- just a chat.
Until next time!
A word for the regulator: As with all insurance policies, conditions and exclusions will apply.
This blog is part of paid partnership CheltenhamMaman is proud to hold with Hudson Rose.
Graham is a father of two and a regulated provider of financial advice who believes you don’t have to wear a suit to know a thing or two about looking after your money and protecting those you love. You can find out more about Graham at Hudson Rose and follow him on Facebook and Instagram.
Graham is writing a series of blogs for CheltenhamMaman covering Money Matters and would love to know which myths you’d like busted! Leave a comment or drop him a message to let us know what topics you would find useful.