How to totally look after yourself
Whether you are young, footloose and fancy free or find yourself single in later life after a bereavement or divorce, unless you have dependents (See life assurance) you can concentrate on your own financial well being.
You probably value your independence. While you are working your salary meets your financial commitments. In a recent survey, conducted by the Yorkshire Building Society (July 2008) the average person only had enough savings to last 52 days if they were not working.
What would happen if you were unable to work due to illness or accident? What if there was no-one else to support you? How would you pay the mortgage / rent, food, utility and household bills?
Wouldn’t it be reassuring to know that you could guarantee yourself an indexed income until you recovered or until retirement?
See Income Protection.
Although income protection, paid out monthly, would replace your salary, it would not clear your biggest financial commitments such as the mortgage or a car loan for example.
For a small monthly outlay you can ease your financial worries if you suffer a serious illness by receiving a lump sum cash injection.
See critical illness
If you are just starting out in life, laying down the financial foundations for later decades is probably the last thing on your mind while you enjoy life now. You need to consider a pension.
Even if you only make a small contribution it will equal larger ones later on as it will benefit from a much longer time to work in your favour.
See retirement planning
If you are already middle aged, then you need to act today, as time waits for no one, to ensure that you are on course to enjoy the retirement you promised yourself.
See Retirement Planning