The importance of Protection when things suddenly change

The economic effects of a pandemic and the rising cost of living have left many people with money worries, it is a stark reminder of how things are liable to change, and just how much this can affect our finances and quality of living.

Ensuring you have the financial security to fall back on

Some people will sensibly save for a ‘rainy day’ which can take years to build, however, it can take just one job loss, illness, accident or cost of the living crisis to quickly drain those hard-earned savings. Leaving most households very reliant and dependent on their regular income. Therefore you could be putting your financial security at risk by not considering how you would manage if that income stopped or your situation suddenly changed.

protecting your Finances

To ensure peace of mind, and financial security, should the worst happen, there are protection insurance policies available, such as income protection and/or critical illness insurance for example.

Here we look at both types of protection, and how they each work:

Income protection: If you’re unable to work for an extended period of time, an income protection policy will make regular monthly payments. Often the payments will continue until you’re able to go back to work. It can help you to cover everyday expenses such as your mortgage payment, household bills etc. if you become ill or are involved in an accident. Typically, it will pay out a percentage of your usual salary.

Critical illness: is designed to pay out a lump sum on the diagnosis of certain specified critical illnesses or medical conditions. Some policies are more comprehensive than others. The money can help you adjust to the diagnosis and give you some time to consider your future plans.

Despite many people holding insurance for material possessions, many still do not have protection in place for their income. While we understand nobody wants to think about these types of things, worrying about finances if something was to happen could cause even more stress.

Future Proof your Finances

Financial protection can give you confidence that you can remain on track even if the unexpected happens. 

We can understand that all of the options can be confusing and overwhelming, however as Financial Planners, we can talk you through the different options available, how they work and how they could support you and your families future.

If you’d like to talk about your protection, please get in touch. We’re here to help you build a safety net that matches your concerns and goals.