Financial protection provides peace of mind
It’s never nice to have to think about losing your job, fall ill or worse. Fortunately for most of us, the chances of dying before we reach our retirement are low, making life assurance relatively inexpensive. However, the likelihood of you not being able to work for an extended period is higher; yet few of us protect ourselves or our family sufficiently against these events.
Some startling facts to consider:
- 5,800,000 in the UK of working age (16-65) have a long-standing illness, disability or impairment which causes substantial difficulty with day-to-day activities. That’s about 1 in 4 of the working population [1]
- Each year over 300,000 people become unable to work onto health-related reasons [1]
- On average we have savings enough for just 29 days if our household income suddenly stops [2]
- For the average family, it could cost over £31,500 a year to pay someone to replace a Mum’s domestic work and nearly £24,000 for a Dad [3]
The cost of providing cover against the worst that life can throw at us is relatively inexpensive and we can advise you on a range of policies to suit your specific circumstances. It is often assumed that protection policies are very straightforward and that you can deal with it on a “do-it-yourself” basis. This is very far from being the case for many. How much life cover should you have? Should a policy be single or joint lives? What about writing the policy in trust? Which is better: Critical Illness or Income Protection or a combination of the two? These are just some of the questions a proper financial planner like Eastcote Wealth Management would ask.
Listed below are some common types of insurance policies and an explanation of what each is designed to cover:
Life Assurance
Pays out a lump sum to your beneficiaries in the event of your death. This could be Decreasing Term (Mortgage Protection) to pay off the remaining mortgage on your home, Level Term to provide for your family or Whole of Life to provide a legacy or cover inheritance tax.
Family Income Benefit
A Term Assurance plan which pays out a regular income to your family in the event of your death.
Critical Illness Cover
Insurance that pays out a lump sum should you be diagnosed with an illness specified in the policy to help you with the cost of everyday life.
Income Protection
Replaces part of your income if you can’t work because you become ill or disabled until you are able to return to work.
The importance of seeking financial advice
Eastcote Wealth Management has years’ of experience and can help you to determine the correct protection level required.
Please do not hesitate to contact us if you would like to discuss your options in more detail. Remember, we offer a free no obligation initial consultation and will be happy to help if we can. We take a holistic and long-term approach to wealth management, opting to build a lasting relationship with you and provide a tailored solution for all of your investment and protection needs.
[1] Source: Health at work – an independent review of sickness absence, November 2011, DWP
[2] Source: Legal & General Deadline to the breadline report 2014.
[3] Source: Legal & General Value of a Parent 2013 Research
The plan will have no cash in value at any time and will cease at the end of the term, If premiums are not maintained, then the cover will lapse.
*The policy may not cover all the definitions of a critical illness. For definitions, please refer to the key features and policy document.
