Guide to Protection: Protecting, preserving and ultimately, distributing your wealth
No matter what the current economic environment, adhering to a few sound and well-practiced strategies will help you to prepare for the future. While your individual situation will always have its unique qualities, our guide provides suggestions to consider as you review your family’s long-term protection plans.
Financial protection benefits have become more important as financial foundations have shifted, government resources have been strained and costs have climbed. When people need them most, benefits such as disability, accident, critical illness and life insurance protect against financial hardships that can derail their stability. Being prepared for the unexpected will protect you and your family from sudden and long-term financial hardship. It goes without saying that we need to enjoy our wealth today, but at the same time ensure it remains there for us and our family tomorrow.
Planning for what will happen after your death can make the lives of your loved ones much easier. While the word ‘estate’ may conjure images of vast property, it really just means your assets – like your home, bank account and personal possessions. Everyone has an estate, and it’s important to create – and regularly re-evaluate – the plan for what will happen to your property after you’re gone. Making sure you have the right protection strategy in place will help protect your assets, enabling you to pass on your legacy in the most tax-efficient way, rather than with undue financial pressures, to the next generation.
THE TRUE VALUE OF PROTECTION
Often because it’s too stressful to think about or seemingly too expensive to implement, many people fail to put a protection plan in place to safeguard their money. We can help you to design a protection strategy that leaves your assets protected – just when you or your loved ones need them most. There are a range of insurance and protection options available that could help cover you and your family. To review your protection requirements, please contact us – don’t leave it to chance…
LIFE INSURANCE
It’s understandable that we would rather not think of the time when we’re no longer around. However, it’s important to protect the things that really matter – like our loved ones, home and lifestyle – in case the unexpected happens.
‘Single life’ policies cover just one person. A ‘joint life’ policy covers two people, and you will need to decide whether the policy pays out on the first or second death, as this will determine when the policy ends.
When choosing between these options, think about:
- Affordability: a joint-life policy is usually more affordable than two separate single policies.
- Cover needs: do you both have the same life insurance needs, or would separate policies with different levels of cover be more appropriate?
- Work Benefits: if one of you has work ‘death in service’ benefit, you might only need one plan
- Health: if your joint policy is with someone in poor health, this may increase your monthly payments
CRITICAL ILLNESS COVER
We never think a critical illness is going to happen to us, especially when we feel fit and healthy, but it can and does. It can happen to anyone at any time, and it’s easy to feel anxious about how we would cope. But if the worst does happen, it’s important to make sure you’re financially protected against the impact a critical illness could have on you and your family. Critical illness cover could help to minimise the financial impact on you and your loved ones. For example, if you needed to give up work to recover, the money could be used to help fund the mortgage or rent, everyday bills, or even simple things like the weekly food shop – giving you and/or your family some peace of mind when you need it most.
INCOME PROTECTION INSURANCE
No one likes to think that something bad will happen to them, but if you couldn’t work due to a serious illness, how would you manage financially? Could you survive on savings or sick pay from work? If not, you may need some other way to keep paying the bills – and you might want to consider income protection insurance.
You might think this may not happen to you – and, of course, we hope it doesn’t – but it’s important to recognise that no one is immune to the risk of illness and accidents. Each year, close to a million people in the UK find themselves unable to work due to a serious illness or injury.
No one can guarantee that they will not be the victim of an unfortunate accident or be diagnosed with a serious illness. The bills won’t stop arriving or the mortgage payments from being deducted from your bank account, so going without income protection insurance could be tempting fate.
PRIVATE MEDICAL INSURANCE
Nothing is more important to you than your health and the health of your family. If you or your loved ones were to experience worrying symptoms, private medical insurance can offer reassurance and control at a difficult time.
The National Health Service (NHS) was established in 1948 to provide healthcare to everyone in the UK regardless of wealth. Despite being one of the best healthcare systems in the world, the service is under increasing pressure from a growing, ageing population and being asked to make major efficiency savings.
LONG-TERM CARE
With the UK’s population ageing, more people will be living with long-term care needs. Oscar Wilde once said: ‘The tragedy of old age is not that one is old, but that one is young.’ But the good news of rising life expectancy also brings with it the challenge of how we fund our future care costs. The question is: who is responsible for looking after us if we need care in old age?
As we get older, it becomes more likely that we may need day-to-day help with activities such as washing and dressing, or help with household activities such as cleaning and cooking. This type of support along with some types of medical care is what is called ‘long-term care’. All in all, planning and timing is of utmost importance when it comes to funding for long-term care, and this is more the case now than ever.
TIME TO MAKE THE RIGHT PROTECTION DECISIONS TO BEST MEET YOUR REQUIREMENTS?
Many people think of wealth as the value of their savings, investments and assets. However, the ability to keep earning an income is equally important. With our professional advice, you can be confident of making the right protection decisions to best meet your requirements.
To review your situation, please contact us – we look forward to hearing from you.
