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How to protect your family in the event of the unexpected
25th May 2017
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Life moves so fast these days that it’s easy to forget to review the financial protection you’re providing for your loved ones or your business partners in the event of something unexpected happening.

Key times to consider financial protection include:

  • When you get married and buy a house.  Could you and your family make ends meet if you lost your salary?
  • Once you have children - little people who depend on your income for a home and a life-style.
  • If you become self-employed. What would happen if you couldn’t work for a while?

Financial protection comes in various guises.  Some of the most common are: Income Protection Insurance, Critical Illness Insurance, Life Insurance, both Term and Whole of Life and Business Loan Insurance. So if you have loved ones you might want to consider:

Income protection insurance

You can take out insurance to protect you against accident, sickness and unemployment or a combination of all three.  You can protect up to 70% of your gross salary and, should you need it, the insurance pay out can help ease any financial hardship whilst you are unable to work.

Critical Illness insurance

Critical illness cover protects you and your family in the case of diagnosis of a critical illness. Usually it pays out a lump sum on diagnosis which you keep even if you make a full recovery.

Life insurance

Life insurance is only paid out on your death – either as a lump sum or as regular payments to ensure your dependents are provided for.

The level of cover you buy will determine the amount of money paid out. You can also decide how the money is paid out and for what e.g. mortgage or rental payments.

You can choose between two main types of life insurance:

Term life insurance: these are life insurance policies that are valid for a fixed term – you choose the term, for example, 5, 10 or 25 years – the length of time when you feel the cover is needed (while you still have a mortgage or dependants). Term life insurance policies only pay out if you die during the policy. There is no lump sum payable at the end of the policy term.

Whole-of-life insurance policy: there is no fixed term.  Provided you keep up with your premium payments, the insurance will be paid out when you die.

Business Loan insurance

If you own a business and want insurance against your suffering a critical illness or death, then you can buy protection for your business loan, overdraft or mortgage.

So if you have loved ones, a mortgage or a business and you haven’t reviewed your financial protection in a while, give Mike Perry, a Financial Consultant in St Albans, a call on 07525 846614. He is currently offering a FREE no obligation consultation

You have nothing to lose – and potentially much peace of mind to gain.

 

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About the Author

Huw T

Member since: 5th January 2016

As the owner of thebestof St Albans and Harpenden my mission is to help local independently owned businesses to grow and community groups, charities, local sports clubs, societies to thrive. If you know...

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