Financial protection: can you afford not to have it?

We can never be sure what’s waiting for us round the next corner. It could be great – a new job, a new baby or even a lottery win. But sometimes, life throws the unthinkable at us.

Many of us know someone who has died young or even heard of someone’s battle to survive a serious illness  Anyone who’s seen a family trying to deal with these things will know that the financial and emotional impact can be devastating. We think it’ll never happen to us, but it could. And having protection insurance can make dealing with the consequences a lot easier.

Life cover – financial protection if you die.

Most people who buy life cover buy just enough to pay off their mortgage if they die. But is this really enough? For most of us, our mortgage is only one of the many financial commitments we have. Credit cards, personal loans, council tax, childcare costs, food and utility bills are just some of the other regular payments that we have to make. And most of these commitments wouldn’t go away if one of the breadwinners died.

You can buy life cover that pays out as a lump sum or a monthly income to cover the bills if you have to make a claim. You can even combine both types of payment in one plan to give your family protection that covers the mortgage and provides the income they would need to live in the family home without you.

Critical illness cover

Critical Illness cover provides financial protection for you and your family if you become ill with one of a list of defined critical illnesses. If you were to become seriously ill tomorrow, what impact would this have on you and your family? And what would your priorities be? For most of us our biggest concern would be surviving the illness and recovering from it. But it can be difficult to focus 100% on getting better if you’re worried about the next big bill that’s going to come through the door. Sadly this is a reality for many families whose lives have been turned upside down by illness.

Income protection 

Income protection can provide a monthly income if you become ill with an illness that may not be critical, but is severe enough to stop you from going to work for a long time.

The working world has changed dramatically in recent years. One thing remains constant however, and that’s the fact that most of us need to work to pay the bills and to enjoy all the good things in life like holidays, cars and meals out. But bills don’t stop arriving – even if we are very sick. If you fall ill or have an accident and are unable to work, the sudden loss of income could be devastating. Even if you don’t earn an income but look after the home all day, it would be very expensive to pay someone to do all the work that you do.

It might cost less than you think

How much would you pay to know that your family are protected if you die or become ill? £10 a month, £20 a month, £50 a month, or even more? Perhaps that kind of peace of mind is priceless. And given the opportunity, wouldn’t you want to make sure that your family would be financially secure?

It might cost less than you think and be more valuable than you can imagine. We’re all different. What we need, what we can afford and what protection plan is right for us depends on the life we lead. Your financial adviser can tailor an affordable plan to suit your own personal circumstances.

Even a little protection is better than nothing. And protecting your family isn’t only about making sure they have enough money. In the first days and weeks of coping with a life-changing event, being able to talk to an independent expert about your concerns and fears could be invaluable That’s why some protection plans now offer more than a financial payout – they offer practical and emotional help and support for the whole family if you ever have to make a claim. So if it’s a question of affordability, can you afford not to buy protection?

Find out more

If you would like to find out whether your family finances are adequately protected call 08000 85 85 90 or email appointments@lighthousefa.co.uk.