The inevitable isn’t the most pleasant energy to subject your thinking to but unfortunately it needs a quick in then swiftly out of your head on occasion, especially if you have family.
If you had to stop work due to illness or you passed away unexpectedly, how long would your family last paying the mortgage, maintaining their lifestyle and staying in their schools?
These are the main forms of financial protection for consideration:
Family Income
This is a payout your family will receive if you pass away but it isn’t a lump sum.
It pays a monthly income for a set period of time, for example if school fees needed paying and for things like bills.
Life Insurance
This is a lump sum payout your family receives if you pass away. There are many forms of life insurance, the most common being to protect the mortgage.
“Whole Of Life” guarantees a payout when you pass and “Term” covers a specific time period.
Anyone with dependents and a mortgage should have life insurance if they wish to protect their family financially.
Critical Illness
A lump sum is paid out if you are diagnosed with a serious illness that prevents you from working and means you have to adapt to living with new circumstances and arrangements.
There are many forms of policy to accommodate the many different circumstances that may take form. If your savings wouldn’t cover you and your family then this form of cover is worth consideration.
Income Protection
This pays out a regular income if you become unable to work due to illness or an accident. You can choose if the policy runs short term or until retirement.
It is important to have this cover if you are self employed or if your employer only pays statutory sick pay.
If you would like to look at making sure your family are properly financially protected, talk to one of our FCA authorised wealth managers by arranging a Discovery Call [Here]
This article is for informational purpose only. It does not constitute finacial, tax or legal advice, nor is it a recommendation to buy, sell or hold any investment. Past performance is not a guide to the future, investments rise and fall so investors could make a loss. No view is given on the present, future value or price of any investment and investors should form their own view on any proposed investment.