Having made the important decision to take out some form of life, critical illness or income protection, you need to continually review your protection as your life changes to ensure that the cover remains suitable for your needs.

 

There are a number of things you may wish to consider:

 

Protecting your mortgage

It is common for people who have just taken out a large financial commitment with their mortgage to be concerned about the household budget. Whilst you may have taken out life insurance to repay the mortgage if one partner should die, have you considered what would happen if one of you became seriously ill, suffered an accident or were made redundant?  

 

How would you or your family continue to pay the monthly bills?

If you change the amount or term of your mortgage you should review your mortgage life cover too as you might be under-protected. You need to ensure that the full loan amount will be paid off.

 

Protecting your family

Making sure that you can maintain your mortgage payments should an unforeseen event happen is a great first step, but in addition to the mortgage what about your other household bills such as council tax, food and utility bills and childcare costs?

 

Many parents aspire for their family and children to be left in the best possible financial position should they suffer a serious illness or untimely death. Talk to us about the options available. Income protection protects your family from financial hardship if you lose your income. Life insurance pays out a lump sum and protects them if you die.

 

Recent research by one of the UK’s leading financial institutions has shown that the average working age family has enough savings to last 14 days before they would suffer financial hardship should they lose the income of the main breadwinner.  

 

Life Events

    •    Change of job

    ◦    This can bring with it a change of benefits. Are you aware of the benefits provided by your employer and under which circumstances they would be paid?

    ◦    A change of occupation can affect premiums charged for income protection policies.

    •    Going Self Employed 

    ◦    If you are self employed, then have you considered how a period without work would effect your financial commitments?

    •    Change of Lifestyle

    ◦    If you have given up smoking, reduced your weight, cholesterol levels or alcohol intake since taking out your original policy you may be eligible for cheaper premiums.

    •    Getting Married

    ◦    Have you thought about how you or your partner would cope in the event of the sudden loss of one of your incomes due to death, serious illness, accident or redundancy?

    •    Getting Divorced

    ◦    Divorce does not necessarily mean the end of financial responsibility as there may be maintenance payments and children to provide for.

    •    Retirement

    ◦    If your children are no longer dependent on you and you’ve paid your mortgage, think about covering inheritance tax or funeral costs.  

If you have not reviewed your policies since taking them out and have had any major changes in your circumstances since then it would be a good idea to discuss what you have in place and whether you need to make any changes.

 

Your adviser will be delighted to talk to you and take the time to ascertain your needs and financial circumstances before advising on the best product from our panel of leading insurance providers. Your adviser will also be able to recommend the right level of benefits to ensure that your financial commitments and lifestyle are fully covered.

 

What might life have in store for you?

None of us know what lies ahead. Knowing the risks you face and how likely you are to suffer a serious illness or premature death can help you to understand the importance of protection