Financial protection when life throws you a curveball

More than often, unexpected events, such as being diagnosed with an illness or losing a loved one, will compromise your financial security. It is, therefore, vital to explore some of your options regarding financial protection, sooner than later.

In the past 3 years, reminders that the unexpected could disrupt our plans without warning have been abundant.

Even as the direct threat posed by COVID-19 is gradually brought under control, the significant effects of the pandemic continue to linger, whilst the conflict between Russia and Ukraine, and the worst cost-of-living crisis in decades, continue to cause further upheaval.

While ensuring that you have emergency reserves and actively reducing expenses are strategies to safeguard a household’s finances, when resources and time are limited, and you are already feeling stressed and emotional, relying solely on your savings and cutting costs, might not be a viable option in the long run.

Ironically, even though a crisis is a cause for immediate action, the most effective solution needs to be set in motion well in advance.

Below are brief outlines of some recommended insurance policies, designed to protect you and your family against any unforeseen events:

Income Protection Insurance

In the event that you are unable to work due to illness or an accident, income protection insurance provides payouts to assist in covering expenses like mortgage payments, rent, and utilities. You will be covered for a predetermined period of time (typically until retirement) and cover you until you are able to return to work or until the end of the term – whichever comes first.

You are more likely to be off sick or with an injury than you are to die before retirement. Your employer may pay you sick pay but some people overestimate how much they will get and could have limitations. Income protection can provide that financial safety net.

Income protection is also available to self-employed, primary carers, part-time workers, contractors and more; our advisers can provide you with a quote to suit your circumstances.

Critical Illness Protection

This type of insurance will pay a lump amount upon you being diagnosed with a certain critical illness or medical condition. This amount will provide a much-needed income boost if you are unable to work.

All critical illness covers include the main serious illnesses you might suffer from – coronary artery bypass, major heart attack, kidney failure, major organ transplant, multiple sclerosis, stroke and a defined set of specific cancers.

Policies can also cover many more, along with cover tailored to your children.

Life Insurance

Life insurance protects your loved ones with a lump sum payout, ensuring that they don’t suffer financially if you’re not around anymore. A policy is usually bought to cover the period (or term) that your family most need help i.e., during a mortgage term, or when your children are financially dependent on you.

Life insurance covers death through illness, disease, cancer, heart attacks or accidents. Depending on your cover, it may also cover a terminal illness diagnosis and suicide.

In addition to these insurance policies, there are many significant advantages of having a financial advisor. Apart from providing invaluable peace of mind, they can examine your financial plan (or create one) and determine where you can cut costs while keeping your long-term goals on track.

By consulting with one of our advisors today, you can save yourself a lot of time, loss and unnecessary worry. We can help you with financial planning, choosing the right insurance policies or simply acting as an objective third party to determine your best course of action.

We’ll begin with a free, no-obligation conversation to understand if our service is right for you. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.