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 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.
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 insurance1.
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 and 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.
The exact balance of protection will vary from person to person, and family to family. Two of the most important types to consider are:
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.
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.
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.
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