Planning for your family’s future if you become sick and can no longer work is not an easy topic to think about. But coronavirus has put it top of many people’s minds over the last few months. It’s important to have a plan and not leave anything to chance.
This does not constitute advice and advice should be sought in all instances before acting on it.
Protection policies are a cornerstone of financial planning. Ensuring the future of your finances is protected from the risk of disease, injury, or illness is an essential safeguard, and you need a solid plan.
Are you prepared?
Unfortunately, it seems the British public are woefully unprepared and without coverage.
According to Aviva Protecting Our Families Report, only 18% of families with dependent children have Critical Illness (CI) coverage and a mere 13% have an income protection policy.
Furthermore, 36% of parents don’t think they’ll ever need/want CI coverage, while slightly more people (40%) don’t think they’ll need/want income protection.
Have you given any thought to how your family would fare without your income? Even if you feel comfortable with your financial situation as it currently stands, going through a period with reduced or no income can be a huge burden. What kind of protection do you have in place?
What are you protection options?
This is where Income Protection (IP) and Critical Illness (CI) policies come into play. While similar, they’re distinct enough to merit securing both types of coverage.
Critical Illness policies are usually a lot more restrictive than IP – not only in terms of the illnesses and conditions that are covered, but in the protection it provides as you can only make one claim during your policy term. However, you will receive one lump-sum payment which can be used to pay the mortgage or rent, bills, or even groceries. It’s a great way to take care of bigger or one-off expenses.
“I am writing to say thank you for your good advice 11 years ago regarding critical illness cover, as this has reduced my worries about our home being taken away if I could not afford to pay off the mortgage.”
Dr A.G
Income Protection, on the other hand, covers a broader range of illnesses and conditions and these policies are designed to help your family through prolonged periods of being unable to work.
This type of protection is tied to your income, and you’ll receive a monthly benefit after your chosen waiting period for a limited period, or until you either retire or pass away, depending on your policy. Be sure to review the coverage terms carefully as some stipulate that payment will only be rendered if you cannot perform the duties pertaining to your job, specifically, whereas others only dictate the inability to perform any job.
Get in touch
We understand that thinking about the best way to secure your family’s future if you are no longer able to provide for them is probably the last thing you want to think about. But that’s exactly why it’s essential to have the right protection plan in place.
Don’t leave anything to chance – get in touch with us today to review your current situation or if you have any concerns.
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Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.