Why is Your Car Better Off than You?
18 July 2017
Do you own a car? If so, it’s probably better off than you.
How so? Because when it comes to buying your car insurance, what do you choose – fully comprehensive or third party fire and theft cover?
It turns out that most of us will go for the fully comprehensive option, even though it costs more. In fact, according to research, less than 10% go for third party fire and theft cover.
And if you ask people why they’ve chosen fully comp, it’s likely they’ll tell you that their car is valuable, and they want to insure it against any eventuality – be it a knock, bump, scratch or something more serious.
So why does this mean that your car is better off than you? Because while your vehicle enjoys a Rolls-Royce level of cover for all eventualities, when it comes to life planning, so many of us haven’t protected ourselves against every outcome.
For example, what happens if you have an accident or suffer an illness which means you’re unable to look after yourself and make your own decisions about important issues? How do you want your money to be spent? What should happen to your property? What type of medical treatment should you receive?
These are all situations that, like a road traffic accident, may never (and hopefully will never) happen. But like when it comes to insuring your car, it’s better to be prepared for anything, just in case. And with 850,000 people currently living with dementia in the UK, with another 225,000 expected to develop dementia this year alone, it’s a very real risk to us all.
Around 50% of adults in the UK put a Will in place, and this is an excellent place to start. Making a Will ensures that your wishes are known, and that your family and friends inherit as you want them to.
And while more people should be encouraged to make a Will, there’s a common misconception that once it’s written, you’ve done everything you need to. But remember – a Will only takes effect after your death. You still need to plan for events that may happen during your lifetime.
You can do this by making a Lasting Power of Attorney. This is a legal document that allows you to nominate people you trust to make important decisions on your behalf, should there ever be a time in the future when you’re unable to make these decisions for yourself.
Many people don’t realise that, without a Lasting Power of Attorney, your loved ones wouldn’t automatically be able to manage your affairs. Instead they’d have to apply to the Court for a Deputyship Order which is a long and expensive process, and even then the Deputyship may be given to someone you wouldn’t have wanted.
Therefore Lasting Powers of Attorney are an essential element of life planning. They ensure that you’re protected and also ease the burden on your loved ones to manage your affairs going forward.
So really making a Will and doing nothing else is a bit like getting third party insurance. It goes some way to providing for your family, but it’s not really covering everything you need. To get a fully comprehensive cover, you need a Will and a Lasting Power of Attorney, as this enables you to plan for every situation – both during your lifetime and after you’ve passed away.