What financial protection do you have in place?
Protect yourself and loved ones against the unexpected
It’s easy to float through life when things are a breeze but what would happen if you were suddenly unable to work, needed to care for a loved one or lost your main source of income?
Financial protection is often seen as a cost rather than an investment and, as a consequence, people fail to appreciate the benefits of including precautionary measures into their financial plan.
What is financial protection?
In simple terms, financial protection is a form of insurance that will pay out in the event of certain circumstances arising. It’s a financial safety net at a time when you need it the most.
Financial protection polices require regular monetary contributions in order to guarantee a fixed lump sum payment or agreed regular payouts for a fixed term and of a fixed value.
All protection policies are designed to give you peace of mind and financial security against unforeseen events and inevitable circumstances.
What types of financial protection are available?
There are many protection policies to choose from that loosely fall into three main categories.
- Life insurance is a policy that will pay out a lump sum to your family or specified recipient in the event of your death. If your loved ones rely heavily on your income to survive, your death may significantly affect their standard of living. A life insurance policy will provide a level of certainty in keeping up mortgage payments and replacing part of your income as an example.
- Critical illness protection will provide a lump sum payout in the event of a life-threatening disease or life-changing diagnosis such as cancer, stroke, heart attack or multiple sclerosis. People are more likely to suffer a critical or serious illness than they are to die (before a certain age), so it’s important to consider how such a diagnosis would affect you and your family financially.
There are various policies available to use the money for treatment, adaptations around the house or to assist with transport or new support equipment. - Income protection will replace your wages if you are unable to work for a prolonged stretch of time. Regular sums of money, usually a percentage of your salary, are paid after a qualifying period or in stages depending on the type of policy taken out.
We have worked with Becky and the team at Willow Financial Solutions for the last 5 years and could not be more impressed.
How does financial protection work?
Financial protection polices offer a choice as to how much you can pay in and how frequently the payments are made. These decisions will impact the amount paid out and the terms of the policy.
A financial advisor can guide you through the options and help you to make an informed choice about the policy provider and protection level based on your needs.
Talk to Willow Financial Solutions about financial protection and gain peace of mind against potential disruptive and disastrous events.
