Many of us have been reaching for the calculator lately with the Covid-19 lockdown, the impact on businesses and subsequent job losses. A contagious virus that kills, also has many of us considering our mortality. Sickness and death suddenly became real.
It’s an excellent time to take stock, not just of weekly outgoings but also whether you have the right amount of insurance in place. Whether you’re looking to reduce your premiums or want to work out what cover you need, a good place to start is a needs analysis.
What is a needs analysis?
A needs analysis is simply a way of working out how much and what type of life cover is appropriate for you and your family.
It will help you think about what insurance makes sense by helping you figure out how much money it would take to cover all your final financial expenses, things like funeral costs, debt obligations, medical bills etc. For example, whether you just want to clear your debt or ensure that the family you leave behind can live the same life you currently have planned for them.
You can quickly work out what cover you might need just by using our calculator. This calculator won’t give you a personalised recommendation, nor does it give you professional advice but it will give you an idea of how much life cover you should be thinking about. You might be quite happy to go ahead once you’ve used the calculator, it includes questions about your income, your debts and any savings.
But often life feels complicated, and you might want some help, this is when you should do a needs analysis. For example, if the calculator recommends more cover than you can afford, talking to someone about your current financial commitments and what you’d like if things go wrong can help you work out a balance.
Who needs to do one?
If you don’t have life cover already, and you’re not sure what you need or where to start, and you’re still confused after looking at the tools and calculators available you would find a needs analysis helpful.
If you have cover, but your circumstances have changed recently, it might also be a good time to have a quick check, especially if you’re feeling pressure financially.
When’s the right time to do an analysis?
With so much change and uncertainty around us, right now is a perfect time to think about your financial situation and the consequences should the worst happen. When we’re not in the middle of a global pandemic, the time to consider life cover is when you take on a lot of debt (like buying a house) or when you have people become dependent on you financially (for example when you have kids). When you start to think about what cover you might need is also the time to think about whether you have enough information to do it for yourself or if you need a little more guidance.
How do I do a needs analysis?
At the moment, the best way to do a full needs analysis is by talking to someone. Pinnacle Life is a Qualified Financial Entity (QFE). That means our employees can provide you with financial advisory services relating to our products and services. For them to be able to do that well, they will first offer a needs analysis. It takes around 30-40 minutes and simply involves a chat over the phone. At the end of the chat, we will be able to tell you if we think you have the right amount of cover for your needs and budget.
*Update: since 15 March 2021 we are a Financial Advice Provider. You can get personalised advice online, or over the phone from one of our advisers.
