If you want to reach all your life goals, having a comprehensive financial plan can be hugely beneficial. Whether you’re investing wealth for a comfortable retirement or saving up to buy a home, having a clear strategy can give you a much greater sense of control and confidence.
Of course, when working towards your goals it can be helpful to prepare for unexpected shocks that could slow down your progress. Events like the coronavirus pandemic have really highlighted just how quickly our lives can change.
Having the right cover in place can be hugely beneficial for you in a variety of ways, so read on to find out three great reasons why you should take out protection now.
1. Having cover in place can help you to reach your long-term goals
Over the course of your life, you’ll work hard to build your wealth and reach your long-term goals. That’s why the last thing you need is for some unexpected event to disrupt your progress.
For example, if you were injured or fell ill and were unable to work for an extended period of time, then it could pose a major problem for your finances. This is especially true if you’re the main or only breadwinner in your household.
While you may have an emergency fund in place, it may not last forever. On top of this, even though you’re legally allowed to claim up to 28 weeks of Statutory Sick Pay if you’re too ill to work, in the 2022/23 tax year you will only be eligible for a maximum of £99.35 a week.
For most people, this is probably considerably less than the amount you would normally earn. As a result, you may not have enough income to pay your bills and other outgoings.
If you don’t have enough to live on, you might have to dip into your savings to make ends meet, or even rely on expensive credit. As you might imagine, this could seriously set you back in your progress towards your financial goals.
This is where having the right type of protection can help, as it can pay you a lump sum if you fell ill and were unable to work for an extended period of time. You could then use this money to cover your ongoing expenses while you recover.
2. Knowing you’re protected can boost your mental health
In the past few months, many people have struggled with the rising cost of living, as everything from loaves of bread to litres of petrol have increased in price. If you’ve been feeling the pinch, this unexpected squeeze may have taken a toll on your mental health.
According to a survey published in the Independent, one-quarter of young adults say that the cost of living crisis is the biggest source of anxiety in their life. This is very understandable, since most people in this age group haven’t had much time to build up their wealth.
When you don’t have a lot of savings to fall back upon, worries about money can be a major source of stress.
For example, if you fell ill and were unable to work, you may not be able to keep up with your monthly outgoings, such as your mortgage repayments. If you fell behind with these then it could seriously affect your credit score, making it more expensive to borrow in the future.
In a worst-case scenario, you could even lose the home that you have worked so hard to buy, which is a hugely stressful thought.
This is why finding the right cover for your needs can really boost your mental wellbeing. Knowing that you and your loved ones are protected against unexpected problems can be a huge weight off your mind.
3. Your cover may grant you additional benefits
While financial protection can be incredibly useful for safeguarding you against unexpected shocks, it can often help you in other ways too.
As we discussed in a previous article, many insurers offer valuable benefits that can save you money, something that is particularly important during a cost of living crisis. Some of the most useful perks include:
Some protection providers, such as Aviva, will offer you a discount on gym memberships, meaning that you can shave a few pounds off your monthly bills. Not only can this be a great way to save money, but the discount can be a useful incentive to stay fit and healthy.
Mental health support
When times are tough and you’re under a lot of pressure, being able to speak to a counsellor can be a huge comfort. That’s why it can be useful to know that some protection providers, such as Royal London, offer mental health support through their partnership with RedArc.
Free cover for children
If you have children, the thought of them developing a serious illness is the stuff of nightmares. But if this ever happened, having protection in place can be hugely comforting, as you can use the payout to fund private treatment to ensure they get the best support available.
Many providers, such as Legal & General, let you insure your children against critical illnesses. Sometimes, the cover is even added to your own protection for free, which can give you much greater peace of mind.
Get in touch
If you want to know what types of protection might be useful to you, we can help. Email us at firstname.lastname@example.org or call 0330 320 5048.