The moment inspiration strikes, oddly enough sat in my local Costa sipping on a Billionaires latte (it’s delicious by the way), however, to drink them frequently you may need to be a millionaire 1 medium Billionaire latte at my local Costa will set you back £3.60 each so if you had one a week that would be £187.20 per year or £15.60 per month.
I love my coffee so will absorb the costs of my mildly extortionate habit on a weekly basis but it got me thinking what else could I do with £15 per month?
As a non smoking healthy 30 year old female this could get me £549,287 of life insurance guaranteed until age 55 provided I paid the premiums on a monthly basis.
That is a serious amount when it comes to life insurance if I was to die that would repay the mortgage, pay for the boys to go to university and still leave money left over for any additional expenses that Dan encountered. However, we would still be in a muddle if I was to be critically ill.
Same information non smoking healthy 30 year old female, premium of £15pm what would could I get for life and critical illness to age 55 – £53,393 just under a 10th of the amount of life cover only but how much more likely am I to have a critical illness than die before I am 55?
I need answers to this so out comes the LV risk reality calculator, before age 55 I have a 2% risk of death, 6% risk of critical illness and a 30% chance of being unable to work for more than 2 months. The chance of one of these things happening before I am 55 is 35%!!!!!!!!
This is the news I found out whilst sat in the middle of Costa – I feel sorry for the other customers if they saw my face at this point.
Do you need me to run these numbers for you? Let me know.
Those numbers though have got me worried – not being able to work for two months plus! There statistically is a 30% chance of this happening in the next 25 years. How far is my £15pm going to get me to solve this problem?
The standard answer to this would be an income protection plan, being self-employed these can be difficult as they are done on a % of earnings at the point of claim subject to a cap set at outset. What if I had earned very little in the previous 6 months. For this specific issue I needed a specific solution, a new product on the market from Aviva.
£6.98!!! For the price of two coffees a month I can guarantee £1500 per month would be paid to me for 12 months if I was signed off for a doctor for more than 8 weeks. Plus this plan will run until I am 55.
So in conclusion my post weekly coffee habit can provide more than half a million of life cover only, over £50,000 of life and critical illness cover and could provide me with an income of £1,500pm for 12 months if I can’t work. All in place until age 55 when I fully intend to have paid the mortgage off and have the kids through university or out in the world of work.
