It’s the conversation nobody wants to have, but it’s arguably the most critical component of responsible financial planning: protection.
You can spend years building a stable life – a home, a career, a future for your family – but life is unpredictable, and the last thing you want is financial uncertainty for your loved ones when there is a way you could prevent it.
There are different components in a comprehensive protection strategy – some you may have, some you may not even know about – so here is a quick breakdown of what you could consider:
- Life Insurance
Life insurance offers peace of mind, ensuring that should the worst happen, your family is financially secure. A key benefit is mortgage protection, as a policy can be structured to pay off the outstanding balance on your home loan, guaranteeing your loved ones can remain in their home without financial strain.
It also provides a lump sum as a legacy that can help cover funeral expenses, replace lost income, cover daily living expenses, fund education, and ultimately protect the wealth and future you’ve worked so hard to build.
- Critical Illness Cover
Critical Illness cover ensures that a serious illness does not result in a financial crisis. It’s designed to alleviate financial strain during a difficult time. The core benefit is a lump sum payout: a tax-free sum is paid upon diagnosis of a serious illness defined in the policy, such as certain cancers, heart attacks, or strokes.
The payout provides immediate financial stability, as the money can be used however you need it – to pay off debts, or allow a partner to take time off work to support you, so you can focus on your recovery.
- Income Protection
Income Protection is often overlooked, but it provides practical, day-to-day security if you are unable to work due to injury or illness. It acts as sick pay by providing a regular, tax-free income stream (usually a percentage of your salary) if you cannot perform your job due to illness or injury.
The policy is tailored to your needs around any existing employer sick pay scheme you may have, ensuring you receive continuous financial support once your company’s payments stop.
- Buildings & Contents Insurance (B&C)
Your home is likely your most valuable asset, and it must be protected against fire, theft, flood, and other damage. Buildings and Contents cover provides this essential protection, safeguarding the structure of your home (the building) and all your personal possessions inside (the contents).
For anyone with a mortgage, Buildings Insurance is usually a mandatory requirement from your lender, as it ensures their collateral is protected. Therefore, getting the correct cover is essential to meet this requirement and to avoid being underinsured.
As Independent Financial Advisors, our role at D A Calder is to review your complete financial landscape and provide honest, open advice on the protection options available across the entire market.
We can help you structure a comprehensive plan that not only protects your assets but also safeguards your future. Contact D A Calder today for a confidential review of your protection needs.