PROTECTION IN FINANCIAL PLANNING
1.1 'Dying too Soon'
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Where the death is that of the main income provider, the greater
the reliance on that income for everyday living purposes, the greater
the need for protection for its replacement. -
Loss of income in such a permanent fashion could produce a number of problems and needs such as:
- Reduction in standard of living.
- Need to keep up with increasing cost of living.
- Need to repay loans.
- Possible loss of possessions if unable to repay loans or keep up repayments.
- The problem of adult dependants and their continuing care.
- The need to pay inheritance tax.