Guest Blog by Justin Fordham from JF Financial Associates – talking about Family Income Benefit
The CRITICAL second part to the Mortgage Protection Equation everyone seems to miss!
You always hear people talk about mortgage protection, but that is only half the equation when it comes to protecting your home and family.
This is especially true if you have a dependant adult like a house wife or husband, someone who is disabled, or if you have young dependent children.
The problem is not many people know what the other side of this equation is!
So let me take you on a quick journey…
- Married couple with 2 kids
- Mr earns a respectable £2000pm
- Mrs looks after their 2 kids but works part time and brings home £500pm
- Total income £2500 which is nice.
BUDGET
- £750pm for their reasonable sized mortgage
- £1042pm on other general house expenses (Ctax / Elec / Gas food etc)
- £300 pm for child care etc (this is being conservative in most cases)
- £2092 Total outgoings per month
- £2500 income minus £2092 outgoings = £408 spare
All looks good right? …Or does it??
| Scenario 1 = So now Mrs passes away Mr income = £2000 Mrs = Zero Total Income = £2000 Outgoings = £2092 – (£750 paid off by mortgage protection) = £1342 left Mr net income = £658…… but Does he need extra child care now mom passed away? How much will that cost?Does he need to give up work to look after kids?Does he need to go part time? Will he still earn enough to support the house?Does he need to work more to support the house, but how does he do this with 2 kids? | Scenario 2 = So now Mr passes away Mr income = Zero Mrs = £500 Total Income = £500 Outgoings = £2092 – (£750 paid off by mortgage protection) = £1342 left Mrs net income = MINUS – £842 How does she put food on the table?How does she pay the running costs of the house now?Does she need extra childcare so she can go to work full time to support the home?Does he need to work more to support the house, but how does he do this with 2 kids? |
When it comes to Insurance, most people are almost always price driven.
They would rather take “Cheap and Basic” insurance cover, and then go out and take something like the top SKY TV package instead.
Or
They take bad advice like in the example above, and only put half the cover they need, and leave their family in tatters or worse homeless.
If these clients were both 30 years old, fit & healthy and non-smokers. In order to rectify this shortfall in their budget would have cost them only around £11.00pm!
Don’t underestimate the value of professional advice when it comes to protecting your home, your family or your business.
That little bit extra you might pay for the correct cover, could make the world of difference to who you leave behind!
If you wish to contact me for a no obligation chat, please feel free to do so via email: justin@jffinancial.co.uk or via phone on 0845 50 88 588 or 07813 255267.
About me and JF Financial Associates
My name is Justin Fordham – company director of JF Financial Associates. South African born, but English by heritage. I have a lovely wife Joelle and two very crazy dogs that keep us out of mischief and very fit.
I have worked tirelessly over the years ensuring we only offer the highest quality advice, an exceptional service to every individual client and we have remained unwavering in our belief that each client should be treated as if they were a family member. There is only one type of advice provided at JF Financial Associates and that is “Honest advice every time!”
If you would like to discover what ours clients say about us, please feel free to read my client Testimonials.