The Importance of Protection
Everybody knows that life has a funny way of turning out differently to
how we expect it to. When faced with the unpredictable twists and turns
of fate, it is comforting to have the support of the right protection policy
for your needs.
Rising bills reinforce need for protection
With rising household bills, as well as soaring mortgage and rent costs,
protection is more important than ever right now. It is vital that you consider
whether you would you be able to afford your monthly outgoings if your family
were to lose the income of the primary earner.
Consideration of the protection that will give you the right level of support is an
essential part of long-term financial planning. That’s because protection provides
an indispensable safety net for you and your family against any unexpected
downturns in your financial situation.
Longer-term mindset
At a time when many households are already struggling to cover rising costs, it
is worrying that an increasing number of people are abandoning their personal
insurance.
It may seem tempting to save a few pounds a month by cancelling or holding off
a new protection policy. But there is a risk that, should the worst-case scenario
unfortunately strike, you will be left in a difficult financial position.
It is worth remembering too that, as well as leaving you and your loved ones
without essential cover, if you cancel your protection now then take out a new
policy in the future, it will more likely than not end up costing you more, since
premiums are calculated based on your age and health condition.
So, what protection do I need?
The exact balance of protection will vary from person to person, and family to
family. Two of the most important types to consider are:
1. Income protection
Income protection is a financial safety net that provides you with a tax-free
income if you are unable to work due to injury or illness. At the end of your
chosen deferred period, income protection steps in to make sure you and your
loved ones don’t suffer undue financial hardship, allowing you to maintain
normality and the same standard of living at a turbulent time.
2. Life insurance
Life insurance is a crucial safety net designed to protect your loved ones in case
the worst happens. Sadly, many families would find themselves running short of
money very quickly if the main breadwinner were to die unexpectedly. Life
insurance removes this stress at an upsetting time.
Protection is for life
Having the right protection in place provides certainty in the most challenging
times. If you are thinking about changing or cancelling your policy, don’t act in
haste. Contact us today to see how we can help.
As with all insurance policies, conditions and exclusions will apply
Your home may be repossessed if you do not keep up repayments on
your mortgage