It’s festival time! Yay!
I always thought of festivals as music events, but beer, performing arts, art and crafts, food...well, you name it, seem to have got in on the act (excuse the pun) to celebrate all that is fab about their offering! Great fun and a great way to use the summer hours to enjoy yourself. Maybe we should have a financial or money planning festival (note to self, not a bad idea!), but what headline acts would you add to the list?
Now, we appreciate that the thought of visiting a large newly mown field for a summer afternoon to spend a few hours drinking in financial stuff may not get you reaching for your disposable tent (don't discard it please!) but planning for money can be up there in something to celebrate!
If you've got your money stuff under control, you are likely to want to relax and enjoy yourself. So don't ignore it! And if you've gone and got yourself some financial commitments, then make sure you protect them. What do we mean?
Protecting any mortgage loan or long-term rent cost might be sensible and usually not that expensive, although this will depend on your personal circumstances. Protecting your lifestyle and festival habits, on the other hand, can be overlooked or dismissed as unnecessary and costly. AIG Life brought together some interesting statistics in a recent presentation, which might provide some pause for thought:
- The average weekly household spend rose to £554.20 in the financial year ending 2017
- One in five people who are off work due to incapacity will be unable to work for three months or more
- A quarter of people say they would face 'financial ruin' if out of work for only four weeks
- An estimated 137.3 million working days were lost due to sickness or injury in the UK in 2016
- Only one in 10 people in the UK have some form of income protection in place
- In a number of regions in the UK, over 50% of adults have less than £100 in savings
So, if you are employed, check whether your employer offers any form of income protection cover, or how long they would pay you for if you became too ill to work. Some companies are more generous than others, and it's worth bearing in mind that Statutory Sick Pay (SSP), the minimum level of support you'd get, is currently £94.25 per week for up to 28 weeks. Given the average household spend noted above, it is clear that if SSP is the only benefit to which you would be entitled in the event of illness, it's not going to go very far.
Building a holistic protection plan
With the above points in mind, it is clear that thinking about protecting loved ones and ensuring debts are repaid if it all goes wrong is sensible stuff and these days it is possible to build a protection plan tailored to each individual's circumstances and made up of a range of different types of cover, a bit like picking bands you want to see at a music festival! Examples include term assurance, critical illness, total permanent disability, income protection and family income benefit, to name a few. The level of cover can be selected to suit an individual's needs and budget and can provide a cost-effective way of protecting more than just the family home.
Keeping costs low is likely to be important and you might be aware that some insurers offer discounts for 'multi-buys' when considering car or house insurance, as examples. One insurer we are aware of has adopted a similar approach to clients taking more than one personal protection plan to meet their overall needs, and this can help when clients have a limited budget for their protection requirements.
So, you've got the first 'headline' act for your money festival, and you know we can help you get this sorted. Then you can kick back and enjoy the summer more! Happy festival-ing!