Financial protection insurance is an essential part of creating a secure future. It helps you to avoid potential losses and offers peace of mind for you and your loved ones.
Many people don’t like to think about what would happen if they became seriously ill. Yet it’s realistic rather than morbid to say none of us can predict the future. Think about how you would cope if you couldn’t work. Would you have enough funds saved in an emergency fund if you didn’t earn any money for, say, three or six months or even longer?
The website Finder.com says that the average Brit has just £7509 in savings. According to data from the Office for National Statistics, of those aged between 22 and 29 years, about 40% have no savings at all. Those aged between 35 to 44 have £5995 in savings, while those aged 45-54 have £11,013 saved. None of these amounts would last long if you were unable to work when you consider that in 2021, the average UK full-time salary was £38,101.
Yet there’s been a substantial number of financial protection insurance claims. In 2021, Legal & General paid out over £797 million across its life, critical illness, terminal illness, and income protection cover to 16,890 customers and their families.
More protection claims
None of us ever expects to become ill. Yet increasingly, the MB Associates team is seeing more claims for serious medical conditions. We simply can’t take our health for granted.
If you don’t have financial protection, it can be hard to plan ahead and secure your future. Below are some good reasons why you should have it.
Manage risk
Unexpected events can happen at any time and without warning. Illness can cause financial losses that could be difficult or impossible to recover from. Having financial protection gives you peace of mind that you’ll be able to manage any risks that come your way.
You can focus on getting better
If you were to become ill, imagine having to worry about money on top of coming to terms with a serious medical issue. There are various types of cover that would take the pressure off. Income protection provides a monthly tax-free regular sum if you can’t work due to illness. Critical illness pays out a lump sum if you are diagnosed with a serious illness such as a heart attack, stroke, or cancer. Life insurance pays out a tax-free lump sum to your loved ones if you were to pass away.
Prepare for a more secure retirement
A good financial protection plan can help prepare you for retirement by ensuring that your savings are protected against potential losses due to sudden life changes that could deplete retirement funds quickly.
Peace of mind
Knowing that your family and assets are well protected gives great peace of mind. One of our clients recently told us she no longer lies awake at night worrying about how she would pay her bills if she became ill.
In short, financial protection insurance is an invaluable tool for protecting yourself and your family against potential risks and losses associated with unexpected events. With the right cover in place, you can rest assured knowing that all bases are covered.
More Information
We can help with financial protection cover and can offer bespoke advice and plans to suit all budgets. We will gladly provide you with an income protection quote or quotes for other types of financial cover. Contact us today for your free financial protection consultation.