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Life is full of uncertainties

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Protection should be a consideration for everyone, regardless of whether you have a family or a mortgage. People rely on salaries to pay for everything, so this income must have a back-up in case of unexpected events.

Over the years, you have most likely taken out various insurance policies to provide financial security. This may have been when you started a family or took out a mortgage.

These policies provide peace of mind for your loved ones by making sure there is enough money to cover expenses should something terrible happen.

State benefits provide a very small safety net compared to your overall needs. Very few families could sustain their standard of living using the support provided by the state. Therefore, it is vital that you review your protection needs regularly.


As you progress through life, your requirements will change multiple times. Perhaps your children grow up and leave home, or you fully pay off your mortgage.

Some employers will offer benefits that include financial protection in the case of unexpected events. These may overlap with your own policies or these may change over time to leave you unprotected.

Perhaps it is time that you review your overall protection policies and how much cover you have. Any policies that are no longer suitable can be cancelled to save you money, or new policies may be required to cover new requirements.


Life cover protects your family and other dependents by offering financial support. The beneficiary of the policy is paid a death benefit if the life assured passes away.

Any dependents that you have or outstanding debts, such as a mortgage, should be protected. This means that your family can at least keep their home, but on top of this you should include additional protection to cover expenses in the short term. During a difficult time such as losing a loved one, the last thing you want to be worrying about is money.

There are any different types of policy available. One example is ‘whole of life’ insurance, which protects you for the rest of your life. Alternatively, you could take out term assurance, which provides cover for a fixed period, such as 10 or 20 years. This could be linked to your mortgage term.


If you were unable to work due to an accident or illness, could you pay all your bills using savings or sick pay? If the answer is no, you need additional cover.

Income protection provides you with a large proportion of your lost income if you cannot work due to illness, sickness or disability. The typical payout is 50-70% of your income. These payments are tax-free and will last until you return to work or retire.

They cover most illnesses that leave you unable to work, and you can claim as many times as you need to while the policy lasts.


If you are diagnosed with a critical illness, it can have a severe impact on your finances, as you may need to take time off work for your treatment and recovery. Critical illness cover pays out a

tax-free lump sum if you’re diagnosed with, or undergo surgery for, a specified critical illness that meets the policy definition.

This is designed to support you and your family while you cope with the news of the diagnosis and then you can focus on your recovery knowing the bills are being paid.

Every policy has a list of conditions that are covered, so make sure you read this carefully to understand what you could claim for before applying.


Family income benefit is insurance that covers you for a particular term and the payout lasts for a period of time. Your family are paid an income so that if something has happened to you, they are taken care of.

Policies pay a tax-free income on a monthly basis if you die during the term and these payouts last until the end of the policy term. For example, if you die 3 years into a 30 year policy, your family will receive the income for 27 years.

There is no cash in value, so should you stop paying your premiums, your insurance policy will end.


Private medical insurance pays the cost of private treatment should you need it. Some people will receive it from their employer, but if not then it is something to consider so you can have more choice and freedom over your care.

You are able to choose the level of care you receive in addition to when and how it is provided. Basic insurance covers the costs of most in-patient treatments and day-care surgery.

Some policies cover out-patient treatments such as specialists and consultants. You could also be paid a small amount for each night you spend in an NHS hospital. You pay premiums monthly or could also pay them annually. Pre-existing conditions are rarely covered.


Some families would have to cut their living costs in order to survive financially in the event of the main breadwinner falling ill or dying prematurely. If your income were to stop due to an illness or death, this could mean mortgage repayments are missed, savings depleted, your home being sold and your family’s standard of living eroded, with stress and worry all too evident. Putting in place sufficient protection will give you peace of mind that if the worst does happen, the bills will still get paid. Please call us to discuss your situation.

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Important Information

This article is not intended to be financial advice. It is important to consult a professional when considering Investing. The value of investments can change, and it is possible to lose money.