The Covid-19 pandemic has pulled many areas of life into sharp focus.
From air quality to the economy, the human species is undertaking a huge rethink.
As we pass the peak of the pandemic, we move into a time of reflection and what-ifs.
There’s no doubt about it; the pandemic will have a lasting impact on the way the world works and how we live.
But the details of our impending transformation are by no means clear.
All we can be sure of is that the world of January 2020 was long ago and seems very different to now.
As commentators ruminate and speculate however, there is one thing that we as financial advisers can be certain about – things that this virus has shone a spotlight on.
Most people in the UK do not have the legal and financial measures in place that they need to get them through a crisis.
Most people are not prepared financially for when tragedy and grief strike.
As far as protection cover is concerned, Covid-19 struck when Britons were least ready for it.
The number of protection policies taken out in the UK has been steadily falling year on year since 2014.
Only 50 per cent of households with mortgages currently have life insurance.
Most people don’t have a will and the cost of dying in 2020 is rising. It was 3.1 per cent higher in 2020 than it was in 2019.
The average cost of a funeral in the UK is £4,417. If you haven’t got that money set aside or you don’t have a life policy in place to pay that out, you’re leaving your family with a financial burden.
Obviously, part of our role as financial advisers is to ensure that our clients have the right level of protection in place.
It’s our job to take a holistic approach to their financial affairs for the sake of their peace of mind.
Our clients need to know that should the worst happen, their loved ones will be looked after, and their wishes carried out.
This means that when clients come to review their investments and savings, we need to check that they have made the right provisions.
Do they have a will? And if so, is it up to date? And have they made a lasting power of attorney?
Lasting power of attorney
>Your clients may believe the myth that once an LPA has been put in place, they’ve lost control of their finances.
In English law, there are currently two types of lasting power of attorney (LPA): one covering health and welfare, the other for property and financial affairs.
Questions appear on the last page of this article.