By Dave Kavanagh
Many people are in the “it’ll never happen to me” group, when it comes to planning for events that could potentially impact finances. Let’s face it, nobody wants to think that anything “bad” will happen to them but the reality is, bad things happen whether we like it or not. The three areas that are most prevalent to this topic are, Life Cover, Serious Illness Cover and Income Protection. Of course, we would hope that we are not going to die prematurely, we are not going to get seriously ill and accident or illness will not prevent us from being able to work. Sadly, in this small country of ours, over 7,000 people die each year NOT of natural causes (under age 65), we are heading towards 43,000 new cancer cases every year (the cause of more than 50% of Serious Illness claims) and the average time off work for an income protection claim is close to 5 years! When I do group talks, I often ask the question whether anyone’s close family or friends have been affected by cancer? I have only ever had one person say “no”. When I ask whether the same close family or friends have ever won the lotto jackpot, not surprisingly, it’s (almost) always “no”. Yet with odds of 10.7 million to 1 to win the lotto jackpot, people spend a relatively large amount of money each week on lotto (and Euromillions and scratch cards etc.) believing and hoping that it will happen to them. The same people have a 4 to 1 chance of being diagnosed with one of the Serious Illnesses covered BEFORE they are 65. We often review people’s finances and see that they have their vehicles insured, their house insured, their pets, mobile phones, lap tops and jewellery insured but not themselves! It’s not until one of these events happens that people can fully appreciate the financial loss that is suffered. An important detail is that even if people have cover in place from a few years back, they could well be paying over the odds premium wise or it may no longer be most appropriate. Take the time to check what is most appropriate for your specific circumstances.
Dave Kavanagh QFA has been advising people financially for over 25 years. For quotes or information (with no cost or obligation) he can be contacted by emailing email@example.com or use the contact form on www.financialcompanion.ie or @Davekav_advice on Twitter and Instagram. Combined with his previous role of gym/nutrition adviser, he regularly gives talks and workshops at seminars and events for groups, companies and government departments on financial wellbeing, positivity and motivation. As heard on RTE 2FM , LMFM and TV3.