“I opened dryer this morning and a pound coin fell out. Wish that happened every time I opened the tumble dryer door!”
When I read this status, not only did it bring a smile to my face but it also brought a random thought to my mind. Imagine if on opening that tumble dryer door, instead of £1 falling out, £2,000 fell out. Imagine also that this happened on the 28th of each month. Like clockwork, every month, a £2,000.00 pay out.
I think I’d be keen to look after that tumble dryer. It’s not the kind of machine that could be easily replaced so it would get special attention from me. After all, it’s going to deliver a cool quarter of a million to me over the next 10 years or so. If it’s still performing like this in 20 years then close to a whopping half a million pounds will have fallen out of it.
The question is, would it cross my mind to insure that machine? Is there any point in doing so? Should I just cross my fingers hoping that it won’t break down or that it won’t be stolen?
If I did conclude that such a valuable income generating asset should be insured, would I insure it for part of its value or would I make sure I had the most comprehensive cover available? Would I protect the cash fall out for the next 6 months or for as long as possible?
For most of us it’s a “no-brainer”. Such an important tumble dryer would be fully insured and no corners cut. It’s not a time to cross fingers and hope for the best but a time to get the best cover possible. I guess none of us have such tumble dryers in our homes so the question doesn’t arise. But what if we put flesh and bones on that machine and see it not as a machine in the utility room but as the wage earner sitting across from us around the family meal table. The income generator we all rely on to pay the bills, put food on the table, find life’s treats and fund our futures.
In 2012, Which? Money stated:
“The one protection policy that every working adult in the UK should consider is the very one most of us don’t have – income protection.”
Less than one in ten of the UK’s working population has this type of cover, leaving 90% of vulnerable to the financial consequences of loss of income.
So what about you? Are you a member of the 10% who have secured income protection for your working life or are you with the 90% who are crossing their fingers?
Contact us if you want guidance and advice. We are here to help people do what they know they should do.
Disclaimer: The views expressed in this post are those of the author only and are not necessarily those of I Planning Wealth Management Ltd. All material in this post should be considered as general information only and should in no way be construed as a recommendation of a specific product or course of action. Each circumstance is different and professional advice tailored to your circumstances should be sought from a qualified financial adviser.