03 Jul

Financial Protection: You're never too old to give a DAM

Picture this: you enter work at 16, get married at 20 and have 2.5 children by the time your 25. On your 55th birthday you retire to look after your grandchildren and pass away at a ripe old age of 75.

You can’t? Well that’s no surprise.

Now, due to advancements in medicine and technology, we’re not only living much longer, and retiring much later, but many are even choosing to postpone starting a family until later in life.

And the reality nowadays is that someone in their late 50s could still be the main breadwinner in the family, whilst someone in their 60s could still be paying school or university fees for their children.

So why do we still follow these outdated outlooks when it comes to protecting ourselves and our family?

According to Peter Hamilton, Zurich’s head of market management, “Retirement is no longer the binary ‘in work one day, in retirement the next’ that it used to be.

Indeed, many people either need to, or choose to, work on in later life… which ultimately means that the need for some kind of financial protection will extend beyond the old notion of a ‘normal retirement date’ – a notion that many ignore due to the increased expenses that come with older age.

However, whilst it can be more expensive for someone who is older, there are different options available that can meet different budgets, so it is worth finding out how to structure insurance in an affordable way.

For example, you may consider deferring the point at which the IP cover kicks in, depending on how generous your employer’s sick pay scheme is.

A similar flexible structure could be created with life assurance; where you could forego a lump sum and take out a family income benefit (FIB) plan instead, which provides an annual benefit and is slightly cheaper.

DAM support Calums Cabin Young, care-free and cover-free?