• Culverhouse & Co

Have you considered protecting your income?

Updated: Jan 27

It is a sad fact that while most of us are quite happy to insure our car, our house, our travel arrangements and even our mobile phones to their full value, few of us take as much care over our own health and that of our loved ones.

According to figures produced by the Association of British Insurers (ABI), 19.7 million of the UK’s 27.2 million households had contents insurance in 2016, whereas only 5 million had whole-of-life assurance, 0.5 million had term life insurance and only 0.3 million had

income protection insurance.

It is true that not everyone needs cover. Life insurance, for example, pays out a lump sum on death. For a family with small children, the need for this cover is obvious. Remove the family’s main breadwinner, for example, and it would not take very long before the financial

stability of the family was seriously affected. Remove the primary carer, and a replacement needs to be found.

However, if you are single and have no financial dependants, you might consider it a waste of time leaving a lump sum that is unnecessary and will just cost you money to fund. Nevertheless, if you are single, you should still consider what would happen if you fall ill or

have an accident and are unable to work. The state benefits available are only intended to provide a safety net. They will not help you keep up a lifestyle of holidays and eating out, or make any inroads into repaying a mortgage.

Therefore, before you make any decisions, you need to look at your own situation. Some of the following question may help you to start prioritising what is most important to you:

  • Do you have young children or others who depend on you financially?

  • How old are your dependants?

  • Will your dependants be heading to university?

  • Do you pay school fees or nursing-home fees for others?

  • Will any current dependants become financially independent and if so, how soon will that be?

  • Do you have debts (including a mortgage) that your beneficiaries could not manage, even if it were only for a short time?

  • Do you have investments that might provide an income if you were unable to work?

  • Do you have any assets that could be sold if you were unable to work?

  • Would you need to move house if you were less mobile?

  • How do you travel about?

  • How far are you from friends, relatives and local amenities?

Contact us if you'd like to arrange a review of your protection needs. Following a review we can help you put a robust protection plan in place, if necessary.

Remember that the value of your investments can call as well as rise.

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Culverhouse & Co. is the trading name of Culverhouse & Co Ltd and Culverhouse Financial Planning Ltd.


Culverhouse & Co Ltd Company No: 6426365

Culverhouse Financial Planning Ltd Company No: 08470047

Registered Offices: 7 High Street, Farnborough Village, Kent, BR6 7BQ

Email: info@culverhouse-accountants.co.uk

VAT Number GB166078392


Culverhouse & Co Ltd is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales.

Details about our audit registration can be viewed at www.auditregister.org.uk for the UK and www.cro.ie/auditors for Ireland, under reference number C001690279.

Culverhouse Financial Planning Ltd is Authorised and Regulated by the Financial Conduct Authority for Financial Services. FCA Registration Number: 600931

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.

The guidance and/or advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.

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