Protecting what matters most
This period has forced many to reflect on their financial position and will change behaviours so that those that are able, may well consider how they can protect themselves moving forward.
Financial resilience is the ability to recover quickly from an unexpected financial shock. Many of us insure our homes and cars without really thinking about it, but far fewer insure their lives and incomes.
If you were unable to earn due to illness, have you thought about how you would pay your household bills? Savings can and do help in the short-term. But what happens when they run out?
What happens if an illness goes on for three, six, or even 12 months? What then? Life and health insurance protection underpins most good financial planning. These types of insurance can ensure that, if the worst should happen, the right amount of money will reach the right hands at the right time.
Clearly, the current pandemic may be excluded from many insurance policies, but that shouldn’t stop us from considering some key financial planning principles:
1, Provision for liabilities – life and critical illness cover to cover debts that otherwise may not be paid.
2, Protection of income – ensuring that cover is in place to replace income if you are unable to work.
3, Cash reserve – ensuring that you have sufficient immediately accessible cash that can cover your expenses for a period of time. The period of time will depend on individual circumstances but many commentators suggest between 3 and 6 months.
We can help to ensure you have a plan in place to cover any eventuality.
Read our guide here: