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Covid-19 Caused Us All to Think About These Three Financial Factors

There is no doubt that Covid-19 has caused a huge change in all of our lives. Not only in the way we value our health and our family, but also how fragile our financial position can be. The pandemic has spurred many conversations with clients about three key factors, which are now higher up the priority list.


This does not constitute advice and advice should be sought in all instances before acting on it.


People are now thinking about what is important

The pandemic caused people to stop and think, for a number of very different reasons.

Medical professionals and healthcare workers on the front-line, were busier than they have ever known, yet they still found time to consider what is now important; namely “what would happen to my family financially if I were to die or be unable to work”.

On the other hand, dental professionals, like much of the public, found themselves with significant changes to their working day. With time at home to reflect, they had time to commit to valuable life admin and to also ensure their finances were in order should the worst happen.


These are the three key areas that Covid-19 has brought into to the spotlight:

(1) Do I have a will and is it up-to-date?

In March 2020, The Independent reported that demand for wills surged as much as 76%, as it dawned on people about the importance of having a will. Those that already had a will in place also wanted to ensure it was up-to-date.

Some people in a panic, wrote up their own will during lockdown. Whilst a DIY will is an option, it does come at the risk of making key mistakes which can be costly if done incorrectly. If you created a DIY will, it would be prudent to seek the help of a solicitor to get professional advice.

A solicitor will ensure your will is full-proof, and your assets and wealth will be distributed correctly according to your wishes in the event of your death.

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(2) Do I have sufficient life cover?

Whilst NHS pension scheme members were entitled to some benefits from the Death in Service Life Assurance scheme, many doctors were calculating how long the lump sum payout would last their family should the worst happen.

The government Life Assurance scheme for key workers was announced on 27 April 2020 and made available a £60,000 lump sum payout for families who lost loved ones working on the front-line to Covid-19. This included full-time, part-time and locum NHS workers, as well as public health workers, including GPs, dentists, retired staff, and second and final year students, who volunteered.

It soon became clear to many doctors that this payout wouldn’t be sufficient. Therefore those key workers, particularly those at very high risk, made life cover a high priority to ensure their loved ones would have adequate financial security in the event of their death.

Life cover payouts during the pandemic

There was a time during the pandemic where life insurance companies were inundated with enquires and at the same time they were needing to rapidly adjust their assessment criteria and their screening process to factor in social distancing.

Many people with existing life cover policies also wanted to check that Covid-19 was covered, to avoid rejected claims. Many policy holders discovered that Covid-19 is frequently covered, which gave peace of mind.

Life st stcover insurance policies have in fact paid out significant sums during the pandemic. The Association of British Insurers, reported that between 1 March and 31 May this year, 6,689 claims were received under individual protection policies. An average of 77 claims were paid each day, equating to approximately £980,000 per day or £90m in total. This was related to life insurance pay outs alone.


(3) What if I can’t work due to illness?

Income Protection and Critical Illness cover (CIC) have been other key topics of conversation as people consider the prospect of not being able to earn due to sickness or prolonged ill health.

CIC has a valid place as one of the trio of protection covers. However, Income Protection is generally proving a more useful protection policy during these uncertain times.

Income Protection is affordable, particularly if taken out when healthy, and covers a much broader list of conditions than CIC; essentially an Income Protection claim is only dependent on you not being able to work, rather than a diagnosis.

Those with existing Income Protection policies have also been prompted to review their cover to ensure it offers maximum protection.

Related Reading > 4 Reasons to Review Your Income Protection Cover


Next steps

In truth, these three financial factors are relevant every day, regardless of any pandemic.

Unfortunately, it often takes a catastrophe to make us realise what is important and the steps we need to take to prioritise our future security and that of our loved ones.

At Dental & Medical we have been supporting our clients through these tough times with advice around wills and financial protection as well as investments, money and mortgages – all of which have had a significant upheaval due to Covid-19.

We continue to offer our advice on all aspects of financial planning to help you build and protect your income, your wealth and indirectly your health.


What is important to you in these times?
Investments | Financial Planning | Retirement | Save Tax | Protection |

Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.
Call Darren to discuss your options.

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