Because these benefits offer a safety net at only the cost of the tax, many people who have them don’t consider looking for back-up protection.
But what would happen to someone who didn’t set up a ‘Plan B’ and who lost their job? They would find themselves without the security of an income or the safety net of their employee benefits, and therefore unable to pay their mortgage and other financial commitments.
Even for people whose job is safe, there is the possibility that in the current economic climate their employer might decide to cut back on or completely withdraw benefits such as life insurance. This would leave employees in a precarious situation should things go wrong.
And there is always the possibility of things going wrong. That’s just life. Take, for example, the statistic that one in three people will suffer from cancer. This means there is the potential for a third of families to find themselves in an uncertain situation where they may not have the necessary income to pay the mortgage or rent.
If something were to happen to you, could you be confident that your family will be able to live comfortably in the absence of your income?
Arranging a permanent private protection scheme will pay off in the long term, even if you currently have a company benefits plan. When you are working and are comfortably off financially, comparing life insurance quotes and paying for a policy might seem like a waste of time and money. However in a few years’ time you might find you do need to make a claim that will ensure the well-being of your family and loved ones.
Life insurance is partly about priorities, and in this day and age you must ask whether saving a few pounds each month because you have your benefits from work is of more importance than securing your financial future and that of your family.