It’s not something one wants to picture happening to themselves, but imagine a scenario where the unexpected happens. Do you know how your family would weather the financial storm of being unable to work and provide an income?
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Do you think your family’s lifestyle could continue uninterrupted if you suffered an injury or became ill? Would you veer off the track toward your current financial goals?
These are essential questions doctors and dentists must be asking themselves during financial planning. To learn three common myths many people might believe about protection and the truth behind the rumours, read on.
The importance of protection
Having a plan in place to handle an unexpected event like illness, injury, or death is vital to wealth protection and financial planning. Wealth Protection consists of Life Insurance, Critical Illness Cover, and Income Protection. Separately or together, they act as crucial safety nets, offering reassurance and stability during challenging times.
However, misconceptions and myths surrounding protection cause people to overlook its importance, especially during times of financial strain. Let’s take a look into three common myths associated with protection and why they are fundamentally flawed.
Myth 1: Protection Doesn’t Pay Out
Perhaps the main misconception about protection policies is that they rarely pay out and you’re essentially investing money for nothing. That simply isn’t the case, according to the Association of British Insurers (ABI) there has been a consistent payout rate of around 98% for individual protection claims in the UK since 2017. Of the small percentage of claims not honoured, the majority were down to inaccurate information provided at the inception of the policy. Not only do these figures reinforce the reliability of protection policies paying out, but they also prove the efficacy of protection policies when financial support is most needed.
Myth 2: You Don’t Need Protection Until You’re Older
Another misconception about protection is the idea that wealth protection policies are only for people in later stages of life, when health risks are most prominent. If a global pandemic has taught us anything, it’s that tragedy can strike anyone at any stage of life. And anyone who shoulders financial responsibility will benefit from protection policies. It doesn’t matter what age you are, if you become ill or injured, or pass away unexpectedly, your family may struggle financially as a result. But having adequate protection in place can offer some security and peace of mind for both you and your loved ones.
Myth 3: Protection is Too Expensive
It’s a commonly held belief that wealth protection policies are too expensive and out of reach for many. Contrary to this belief, you can absolutely find affordable protection policies. Research from Which? and Money Marketing indicates that individuals often overestimate the cost of protection, and that after investigation, they found policies to be more budget-friendly than assumed. Plus, taking out protection earlier in life, when premiums are lower, can result in significant cost savings over time, making it a wise financial decision.
Work with an advisor to get protected
Wealth protection policies are a sensible, affordable investment no matter what stage of life you’re in since they’re a valuable safety net for unforeseen circumstances.
For doctors and dentists, understanding the importance of protection and dispelling common myths can pave the way for a secure financial future. To explore tailored protection solutions and safeguard your financial well-being, contact Dental & Medical Financial Services for expert guidance and support. Protecting your wealth and family’s financial position is a crucial aspect of comprehensive financial planning—start securing your future today.