Would you be able to maintain your life as you know it if your family lost their main source of income? It’s a prospect that nobody wants to think about, but one we should all prepare for – just in case.
I’m both self-employed and the family’s only earner. What’s more, before quitting my last job to become my own boss, I had endured two separate spells of unemployment since having children.
My earnings fluctuate and I often have to chase payments. Because of all of these factors, we always have one eye on our finances and manage our spending accordingly.
I’m also a natural worrier so, despite being sensible with money, I fret about the future all the time. If I were unable to work – or, even worse, suddenly not around anymore – there’s no two ways about it. My family would struggle.
It’s a worrying thought. Especially as new research from Post Office Insurance has found that the average UK family could sustain their lifestyle for just 46 days if they lost their main income.
Furthermore, almost a quarter of adults don’t have a contingency plan in place for if they were to lose their income for four weeks. This is despite the average family needing an estimated £2,428 a month to live on.
It’s clear that people need to do more to protect against such eventualities. Having life insurance, of course, is one way of safeguarding the future.
Kate and I have had it in place since we bought our first flat together. Our financial advisor recommended it, it seemed like a no-brainer and that was that. It made sense to get it sorted and I like the peace of mind that it continues to bring.
As a result of already having life insurance and keeping a close eye on our finances, I already had a pretty good idea of how much my family would need each month.
I had never really considered how much they would need in terms of a lump sum though. As part of the Life As You Know It campaign, Post Office worked out the amount until my youngest child turns 18.
They revealed the amount to me during a recorded interview. You can see my reaction in the first video on the Post Office Life Insurance page.
While you’re there, why not find out how much you would need to protect life as you know it?
Disclosure: this is a collaborative post.