With no end in sight to the COVID-19 pandemic, the economic impact of the coronavirus has highlighted the importance of financial protection plan.
We never know what is around the corner and it is safe to say that even 12 months ago, none of us could have foreseen the events that are happening right now.
With this in mind, there is no better time to review your circumstances and make sure the right protection measures are in place for you and your family, giving you the confidence that you can ride out whatever might lie ahead.
How much cover is enough?
That depends entirely on your individual circumstances. Everyone is different so the answer to this question is highly subjective.
COVID-19 has shown us just how easily circumstances can change overnight, with many struggling to make ends meet right now. In fact, one in three people in Ireland say they only have enough savings to support themselves for one month.
Determining how much cover is enough will depend on a range of factors, from your long-term financial goals to what you will need to cover your monthly expenses. Calculating the latter can produce surprising results; for example, a €200,000 life insurance pay out would cover a family with €3000 worth of monthly expenses would last for less than six years.
Is my company’s life protection enough?
Over the last decade, employers have made great strides in providing structured benefits packages that support their staff to achieve their financial and lifestyle goals.
It is always important however to have your financial advisor review the cover your company provides, to ensure it meets your individual needs.
Do you know, for example, whether your life protection would provide enough to cover your family’s financial obligations in the event something happened to you? And what if you lost your job, as many have during these challenging times; would your cover provide what you need to cover your monthly expenses?
Having an in-depth understanding of what you are covered for, and whether it is enough, is the first step to achieving financial security. It is not worth being caught out purely because you did not understand the terms of the cover that you have.
Your financial advisor can provide tailored advice to suit your individual circumstances
Your Hennelly Finance advisor can help you determine what amount of protection is enough, unique to your circumstances. Your preferences will also be taken into consideration such as your attitude towards risk, drawing down on your capital or preserving it for the future.
Your advisor can also recommend appropriate tax planning strategies that may limit the amount you need to draw down on your capital.
In particular, cash flow planning tools are incredibly useful for helping people to understand their financial circumstances and better appreciate their opportunities and risk. This can be particularly helpful for decision making, where a visual model provides an indication of the consequences of following a proposed financial strategy, or not. Read more about cash flow modelling here.
Take control of your financial future and speak to your Hennelly Finance advisor for tailored protection advice. Get in touch with a member of our team on 091 586500 or email us at [email protected] today.