We all know life is full of surprises — some good, some not so much. But the one thing you can do to prepare for the unexpected is make sure you’ve got the right financial protection in place. I was reminded of this firsthand recently, when one of my long-term clients received a diagnosis of a critical illness. After the initial shock, all I could think was: Did we set them up with the right protection?
Thankfully, we did. That one decision — to put the right insurance in place — meant their mortgage was paid off. This allowed them to focus on getting better without the added worry of how they were going to pay the bills. It’s a decision they didn’t think twice about at the time, but looking back, they were incredibly thankful they had it.
Protection isn’t something most of us think about every day, and it can feel like something you’ll “get around to later.” But when life takes an unexpected turn, it’s the one thing you’ll be glad you did sooner rather than later. So, let’s break it down. Here are the basics of Life Insurance, Critical Illness Cover, and Income Protection, and why they really matter.
1. Life Insurance: Keeping Your Loved Ones Protected.
What’s it all about?
Life insurance is all about giving your loved ones a safety net if something were to happen to you. It pays out a lump sum or regular payments to your family or anyone who depends on you financially.
Why should you care?
If the worst happens and you’re no longer around, the last thing you want your family to worry about is how they’re going to pay the mortgage, cover school fees, or keep up with day-to-day living costs. Life insurance makes sure they have that financial support, no matter what.
When should you consider it?
If you’ve got people depending on you — whether it’s a partner, kids, or anyone else you help support — life insurance should be on your radar. It’s peace of mind, knowing that if something were to happen to you, they wouldn’t be left with financial worries on top of everything else.
If you’re a single homeowner with no children, you might feel like life insurance isn’t a top priority. While there may be less immediate need, don’t dismiss it altogether. Life insurance is often a low-cost policy, and it could still be worth considering if you want to provide financial support for other loved ones or even just to ensure there’s cover for funeral costs.
2. Critical Illness Cover: Because Life Doesn’t Always Go to Plan.
What’s it all about?
Critical illness cover is there for the moments in life that you don’t plan for — serious illnesses like cancer, heart attacks, or strokes. If you’re diagnosed with one of these conditions, this cover pays out a lump sum to help you manage while you focus on your health.
Why should you care?
Getting a serious diagnosis is stressful enough without worrying about how you’re going to pay the bills. Critical illness cover means you won’t have to choose between your recovery and your finances. It lets you take time off work, seek treatment, and focus on getting better — not stressing about your income.
When should you consider it?
If you’re the main earner in your household or have significant financial commitments (like a mortgage), critical illness cover is a good option. Even if you’re fit and healthy now, it’s one of those things that’s better sorted before you need it.
3. Income Protection: Don’t Let Illness Knock Your Finances Off Course.
What’s it all about?
Income protection insurance is pretty straightforward. If you can’t work due to illness or injury, this cover ensures you get a portion of your salary until you’re back on your feet. It’s designed to give you peace of mind if you can’t work for an extended period.
Why should you care?
It’s all well and good when you’re healthy and working, but what happens if you’re suddenly unable to work? Without income protection, you could find yourself in a pretty tough spot. It helps make sure you can keep up with rent, bills, and other financial commitments, even if you’re off work for a while.
When should you consider it?
If you rely on your income to cover your day-to-day expenses, income protection is worth considering. It’s especially important if you don’t have enough savings to cover a long-term period without work. Life’s unpredictable — income protection helps you feel secure no matter what happens.
Why Financial Protection Shouldn’t Be Put Off.
When life throws you a curveball — whether it’s an illness, injury, or something even more unexpected — having the right financial protection in place gives you the space to deal with the important stuff, like your health and your family. You don’t want to be thinking about how you’re going to pay the mortgage or keep the lights on while you’re trying to recover. I always tell my clients that protection isn’t something to put off. It’s easy to think, “I’ll get to it later.” But the earlier you take care of it, the more you can relax knowing you’re covered if life takes an unexpected turn. And when it does, you’ll be thankful you made that call.
Need Help Sorting Your Protection?
If you’re unsure about which financial protection policies you need or want to review the ones you already have, don’t hesitate to get in touch. I’m here to help you make sure you and your family are taken care of — so you can focus on the things that really matter.
*As with all insurance policies, conditions and exclusions will apply.