Financial planning also means taking into account, what might or could happen to your family should any unforeseen circumstances arise.

Circumstances such as redundancy, illness, or the death of a wage earner; are likely to plunge families into unexpected financial difficulties, which may all be avoided with a little forethought and application. Spending a relatively small amount of time to assess your exposure to risk and to calculate what it would take to cover any debts – providing your family with an income, for tomorrow, would be a wise approach to do today.

In today’s prices, it is safe to assume that up to about ten times an earners yearly income is enough. However, there are other factors, which one needs to take into account such as: age, the number of dependants, assets and any outstanding liabilities.