Financial Adviser says Think Very Carefully
22nd November 2010
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Think very carefully……………………………


Both Andrew and I have nearly 50 years’ experience in the retail financial services sector and it is fair to say we have ‘been around the block’ a few times with regard to seeing the effects economic cycles have on people.

A particularly sad and also shortsighted story was told to us by a long standing client.

A friend of many years of our client had decided, having paid premiums towards his various life and critical illness plans to protect his wife and children for many years, to cancel everything.

His decision was partly driven by the economic doom and gloom and that he and his wife were fit and well and could no longer see a true value in paying out each month.

One morning, his wife, a healthy lady in her 40’s has a massive stroke and died. Her husband is left with a mortgage still to pay and school fees for two children. All of which would have been covered had they kept their cover going.

Please, please, please ‘think very carefully’, before making a very important decision like this. Consider the worse-case scenario, discuss it with your adviser – you may have a premium holiday clause in your contract that allows you up to 12 months grace before the policy is cancelled. If it is there, use it and it will enable you to keep the policy whilst deferring the premium payments for 12 months.

Insurance is supposed to provide an umbrella when it starts raining. Don’t cancel your insurance just because it looks sunny today – you don’t know when the weather will change.

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