Brief presentation regarding why providing personal protection is crucial in financial planning and advice

1. The Importance of Protecting
yourself for your working life!
version 1.2 Oct 2011
www.chrisluntifa.co.uk

2. Why Protection?
• Ask yourself if your Television gave you
£20,000 per year or more each year without
fail then would you insure it?
That TV is yourself and your ability to earn a
living and this is the most important thing in
your life
“Your health is your wealth” version 1.2 Oct 2011

3. The Facts.......
One in three people during their
lifetime will develop some form of
cancer
Source: Cancer Research UK
Average age of a woman
claiming on her LV critical
illness policy is 46 years old, for
a man it is 49 years old!
Source: LV Critical Illness Claims 2010
A property is repossessed
Every 17 minutes!!
Source:
www.creditaction.ork.uk (April
2011)
The average length of a claim on a LV
Income Protection Policy is 7
years!!!!
Source: LV IP Claims 2010
A Person aged 25 years of age and earning £25,000 per annum
could potentially lose £1,000,000 in lost earnings if they were
unable to work until age 65!!!
How much do you stand to earn until age 65??
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4. I don’t need protection!
• Any person who is working needs protection to protect their main asset which
is their ability to earn a living!
• Housewives/House-Person may still need protection so that the main earner
in the household can continue to earn a living.
• The younger you are then the better, the premiums should be cheaper as you
are likely to be more healthy. This allows you to guarantee the cover at the
cheapest premium for your whole working life!
• You don’t need to have a mortgage, children to need protection which is a
common misconception.
• Protection policies are very flexible and can be amended when your
circumstances change and they are not a debt!
• You are protecting you and your families current lifestyle against a critical
illness, against being off work due to sickness/accident or premature death.
• Protection policies can be used for future mortgage purchases etc, so you
won’t have to pay extra money on protection, also you may not be able to get
cover in the future if you have any health problems!!
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5. I already have insurance?
• If you already have insurance then you should also arrange your free, no
obligation protection review because:
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6. Life & Critical Illness Cover
• We believe that this should be mandatory for every single
person in the UK.
• Critical Illness cover will give you a lump sum tax free
payment if you are diagnosed with a critical illness such as
cancer, heart attack, stroke etc to do whatever you want with
it.
• It doesn’t just affect you who wont be working, it will affect
your family, friends who may have to take time off work to
take you to hospital/ look after you etc.
• These policies payouts can be used for anything such as
paying off mortgage, changing the house if needed, lifesaving
operation, supporting your family etc.
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7. Income Protection Cover
• You may be lucky and your work may pay you for 6 months if you
are off sick but.....
• What happens after that? How will you survive without any
income?
• The government will give you between £51.65 to £96.85 per week*
depending on your type of claim stage/illness but is that enough?
Work out your outgoing per month?
• These policies will pay out approx 50% of your salary tax free in
addition to state benefits to enable you to continue with your
standard of living.
• Payments are paid each month until you return to work or when
the policy expires allowing you to continue with your life without
having to worry about money and allows you to focus on getting
better!
*Information can be found on http://www.dwp.gov.uk/employment-and-support - £51.85 is paid to single people under age 25 during the assessment period, £65.45
is paid to over 25 single people. If accepted onto the work related group then the payments will be £91.46, if accepted onto the support group payments will be
£96.85, details correct as at 01/03/2011
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8. Example of why you need protection.
• At the moment, you may be very lucky and have no health problems and working as normal so you think
you don’t need protection. This exercise may help you understand that you do need protection and by not
having it, instead of letting an insurance company take the risk then YOU ARE!!!!!
INCOME SAVINGS
PENSION
MORTGAGE
OR RENT
You have not been able
to work for 6 months
so you will lose your
income, lets cross that
box out!
You will then stop
making pension
payments* as you are
cutting down on your
outgoings- you are only
getting between
£51.65 to £96.85 per
week now, lets cross
that box out!
You will then use your
savings to pay for
outgoings including
mortgage/ rent
payments but these
will only last for so
long! Lets cross this box
out!
Now you are left with
no income, no savings
and no pension so how
will you survive on
£51.65 to £96.85 per
week? How will you
pay your mortgage and
your bills?*= Unless you have waiver of premium on your pension
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9. There is good news!!!
• You can avoid this ever happening to you by planning ahead
now and putting your protection in place for your working
life!!!
• It may be cheaper than you think and I provide a non
obligation service so what have you got to lose!!!!
• Who is going to take the risk, YOU or an INSURANCE
COMPANY!!!!!!
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10. The Cost?
• What percentage of your take home pay would you give up in order to make sure you are
fully protected financially in case anything was to go wrong along the way?
On average, it will probably cost between 3% to
5% of your salary in order to provide a good level
of financial protection. Would you be willing to
utilise this money to protect yourself and your
lifestyle?
You have nothing to lose but
everything to gain from having a free,
no obligation review!!!!!
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11. Putting your main priorities first?
People sometimes insure their mobile phone
against loss- this could cost around £5-10 per
month.
What is more important, a £300 phone or losing
your income?
An average food takeaway costs around
£10-£15 each time.
By reducing the amount of time you go
for a takeaway can help pay for
protection and you may feel healthier for
it as well!
If you get a cappuccino or tea during the week
then this may cost you on average £2 a cup, if
you have 10 cups in a month then this is £20.
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12. Still Need Convincing?
• If you are still thinking, I am healthy I don’t need
protection, then have a look at this video for an
example of people who were in your exact
thought of mind.
• Please watch this film and see if this will change
your mind!
• http://www.lv.com/mkt/itcanhappen
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13. Finally...
• Thankyou for reading through this presentation. Please pass this on to as
many of your family or friends as possible as don’t let them be caught out by
what could happen!!
• If you require any further information or would like non obligation quotations
tailored to your situation then please contact me using the following details,
appointments can be conducted either at your home address or my office,
appointments are available Monday-Friday between 9am and 9pm.
• Name: Chris Lunt (dipPFS)
• Freephone Number: 0800 023 5993
• Mobile Number: 07921721166
• E-Mail: chrislunt@huntermills.com
• Address: 11 Hattersley Court, Burscough Road, Ormskirk, L39 2AY
version 1.2 Oct 2011