As you may have heard, ‘these are unprecedented times’.
During this global pandemic, most people are working from home and having to self-isolate. Whilst this provides a unique opportunity to spend quality time with your family, it also provides an opportunity to review your current financial arrangements.
With many people losing their jobs, or even worse their health, there is no better time to check that you have suitable protections in place.
That ’emergency fund’ you always hear you should have is only step one. An emergency fund is a lump sum saving, normally of around 3 months of earnings. This should be in a cash savings account rather than invested so that it’s secure and not vulnerable to market volatility.
The next step is insurance which can provide financial protection against loss of income, poor health or death.
Income Protection Insurance can provide you with 50%-75% of your salary should you become unable to work due to sickness or injury for a period of 4 weeks or longer. This helps to cover your ongoing expenses if you are unable to return to work for a long period of time. This insurance is particularly important if your income is the main household income and/or if you have regular mortgage payments to make.
Critical Illness Insurance provides you with a lump sum if you are diagnosed with any of the conditions listed in the policy, e.g. stroke. This money can be used to make any adjustments to your home (e.g. wheelchair access), pay off your mortgage, or cover ongoing expenses. Keep in mind that around 1 in 5 people develop a critical illness before retirement age.
Life Insurance is perhaps the most unpleasant circumstance to consider protecting against but also one of the most important, particularly if you have a family and/or outstanding mortgage. This type of insurance will pay out a lump sum which can be used to provide financial support to your family on your passing, clear any debts (e.g. mortgage) or cover funeral costs. (Often this insurance is surprisingly cheap!)
Each of these policies can be varied in their construction to provide you with suitable cover to suit your circumstances at a competitive cost.
We can review your circumstances and conduct whole of market research to recommend and implement a suitable and competitive policy for you. In many instances, we can provide this service on a commission-only basis (meaning you would not be invoiced for it!).
Contact us now for a free initial discussion around your protection needs.
Please note that at this time, most insurers do not cover Covid-19 for income protection or critical illness cover.
However Covid-19 is only a single illness and for many people it has reminded them of the importance of having suitable protection in place to protect against the unexpected.