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Life Insurance - an extra cost ?

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Life Insurance Isn’t Just an Extra Cost
My personal exposure to Life Insurance, before becoming an Independent Financial Adviser (IFA), was to watch implausible stories played out during the TV adverts… you know, wooden actor attempts to look surprised as he receives a cheap insurance quote. 
So I’d like to run through a narrative which is truthful and personal to me… very… because it is me. Hopefully my story serves as an example of the potential benefits of protection, rather than just the costs. Note, ‘cheaper’ insurance may not offer the level of cover you require and/or may escalate in cost as you move through life.
I purchased a home in 2017 and subsequently brokered my own “Decreasing Life Insurance” through Aviva. The motivation for such insurance is to cover the outstanding mortgage (c. £150,000 over 25 years) should the worst happen to me during the term. I chose a “Guaranteed Premium”, which is more expensive at the outset but is non-reviewable and untied to specific periodic increases. I also opted for “Critical Illness Cover” which pays out if I suffer serious illness; an event statistically more likely than death within the time period. Crucially, I also paid for “Fracture Cover” (FC). I am a young[ish] active person and at an age where stag-dos are common place - making breaking a bone or distressing a major ligament, considerably more likely than the more serious scenarios above.
There are rare occasions when people hate being right, perhaps when Tim Henman got knocked out of Wimbledon again, and unfortunately my decision to include “FC” is such a time. Since the inception of my policy I have suffered two cycling accidents – Lycra is no match for tarmac. I suffered a head injury the first time, resulting in a concussion that kept me out of work for 6 weeks, and skull fractures. Like many, an IFA relies on work completed for income, and I was therefore hugely relieved that “FC” would pay out a significant award, £1,500.
A year later, having promised those I care about that my cycling would become more calculated, I found myself on the start line of a race, beyond England in Cornwall. In a storyline more predictable than “Titanic”, I suffered another major accident – breaking my arm, ribs and fingers. Again, work was restricted, and Fracture Cover was able to bridge the financial gap.
The pay-outs I have received equate to over 10 years of my premiums and of course, the policy remains in place for its primary purpose; and on a non-reviewable premiums basis. 
Life Insurance, protection and estate planning are available from SWLaw, along with the usual mix of investment, saving, mortgage and conveyancing options. I’d be delighted to help – 01752 205205
Rob Cowsill 
IFA at SWLaw Investment & Financial Planning Limited
 

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