Financial Protection

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 something great like a new job, a new baby or even a lottery win (you gotta be in it to win it!). But then again, 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 – a 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. More than that are all the things you eventually plan to provide for your family – would you still want them to happen, even if you are not there?

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 pays off the mortgage and provides the income they would need to go on living in the family home.

Business owners may also benefit from putting life cover in force to the value of their share of the business. If the worst happens, their family receive the value of their share and their business partners acquire the shares. Some businesses insure the life of their key person, to cover lost profits.

Critical illness cover
Critical Illness cover provides financial protection for you and your family if you become ill with one of a long 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. Think of it as sick pay. You may think your employer would provide that but the minimum they must provide is Statutory Sick Pay – currently around £88.45 per week.
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. We 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
We help our clients achieve peace of mind. If you would like to review your needs and current provision, please call 01473 730 999 or email mail@lighthouseplatinum.com. Find more details at www.lighthouseplatinum.com

This article is for general information only and not intended to address your particular requirements. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation.