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Critical illness is the real threat to income

Roger Edwards

During the recent ash cloud crisis it seems airlines largely decided for themselves whether or not to continue flying.

Ryanair’s Michael O’Leary even declared the ash ’mythical’ after carrying out his own assessment of the airborne contamination.

Everyone has their own attitude towards risk. For some people it might be taking up an exhilarating but dangerous sport, for others it’s not wearing a seatbelt in the car.

But are people willing to take the risk that they will never have to take time off work to deal with a serious illness?

As we’re 15 times more likely to be off work for six months because of an accident or critical illness than we are to die before retirement, it makes sense to have a financial strategy in place to cope with potential loss of earnings.

The fact is that for most people, apart from those lucky enough to win the lottery, their salary funds everything in their daily lives. Mortgages, bills, holidays, entertainment, clothes, food, savings and pensions are all funded by their income.

People need to focus on the risks that really matter. Talking to an IFA is a good way to get people to face up to their responsibilities and take charge of their future.

The greatest threat to that income won’t be another ash cloud, it will be an unexpected illness.


High arrangement fees are hardly fair treatment for clients

I’m interested in the continued talk about treating customers fairly, especially in relation to rates. Despite the Bank of England base rate being 0.5%, to secure an advantageous interest rate on a buy-to-let mortgage of 3.99% – which is hardly giving it away – our clients have to pay an arrangement fee of 3%. So, […]


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