Are you your most valuable asset?

Just multiply your annual salary by the number of years you have left to retirement.  For example, a 30 year old person earning    £25,000 per annum might earn £750,000 over their working life.  That is without any account for pay rises and career progression.

For most people this income will fund a comfortable lifestyle, purchase a home, a nice car and support children but what happens if if that income is lost?

Most of us take our income for granted, it is probably not as much as we would like but how much harder would it be if it were gone?

Without your income could you

• Pay your mortgage?
• Run your car?
• Pay your bills?
• Feed your children?

Financial Adviser Hertfordshire recommends you seriously consider the risk of losing your income.

The main risks are

• Accident
• Serious Illness
• Unemployment

Take the case of Martin.  He was fit and well, worked as a publishing manager and was married with two children.  He enjoyed painting and cycling.  Whilst driving to a meeting he was involved in a motorway accident and sufferred damage to his back.  He was in considerable pain and had great difficulty in getting about for several years after the accident although he is much better now.  As well as the physical difficulties he sufferred, after three months his employer reduced his salary to statutory sick pay.

At the time Martin had a large mortgage and some debts including car finance and credit cards.  He needed his car but was forced to sell it to repay some of the outstanding finance.  Eight months later and despite the promise of DSS assistance with his mortgage, he and his wife had to sell the family home due to mortgage arrears.

Martin is much rocovered now and is working again but he will tell you that the years he spent without income had a crippling effect on his long term financial situation.  He was only recently able to become a home-owner again and his new mortgage is more than twice the mortgage he had before.

Income insurance is very affordable especially for younger people.  Financial Adviser Hertfordshire recommends you contact an Independent Financial Adviser for quotes.  An Independent Financial Adviser will assist you to choose the insurance that is most appropriate for your own circumstances and complements any sick pay arrangements your employer might provide.