Ludlow is urging families to make sure they have adequate life insurance.
While most people have insurance for other aspects of living, such as their cars and homes, this type of cover is often overlooked and Ryan Hesketh, consultant at Ludlow Wealth Management believes it could prove a costly mistake.
The most recent protection study by Scottish Widows estimates that around 65 per cent of people don’t have any life insurance and Ryan says this could leave families unable to make mortgage payments, pay bills or cover other life expenses should the worst happen.
Life insurance can provide for families in the event of the death of a loved one, but it can also cover anything from minor illnesses to critical conditions, paying out if someone is left unable to work.
Ryan believes this aspect is especially vital where children are involved. LV’s ‘cost of a child report’ found that 94 per cent of parents have no income protection, and with the cost of raising one child in the region of £14,000 per year, he is warning that family finances can quickly get into difficulties in the event of just one salary coming into the household.
Ryan said: “While it is all too easy to put off thinking about life insurance, it’s important to ask just what this protection is really for and why it’s necessary.
“We believe it’s about maintaining family life when the worst happens. Of course money can’t replace a loved one, but it can help to provide for the everyday issues life creates, and give you peace of mind.
“There is also the issue of inheritance tax. You can use life insurance to make sure this is paid, and ease the burden on the loved ones left behind. We suggest seeking professional advice on how best to do this as the insurance policy must be written in trust during your lifetime. This trust will then pay the bill after your death.”