When it comes to financial planning, one topic that is considered simple but often sparks the most questions is protection. Whether you’re a first-time buyer, have a growing family, are a business owner or approaching retirement, ensuring that you and your loved ones are financially secure is the foundation of a solid financial plan.
We speak with clients from different backgrounds every day about the importance of protection. While everyone’s circumstances are unique, the same questions come up time and time again. Here are the top five questions our clients ask us about protection, and the answers we give to help them make informed decisions.
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What exactly is “protection”?
When we talk about protection, we’re referring to insurance products that safeguard your income, lifestyle, and loved ones in the event of illness, injury, or death. This includes life insurance, serious illness cover, income protection, and business protectioin, among others. Think of it as a financial safety net. If the unexpected happens, your protection cover can provide a lump sum or a regular income to cover day-to-day living expenses costs, mortgage repayments, or unexpected medical expenses among other things. It’s about giving peace of mind that you and your family are financially supported no matter what life brings.
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Do I really need protection if I already have savings or work benefits?
This is a very common question and a very good one. While savings and employee benefit schemes are important, they may not be enough to sustain you for the long term. You need to carefully consider how long they would last you, given your outgoings. In addition, some benefit schemes only cover a portion of your salary for a specific time period. Protection cover is designed to bridge any gap and help to ensure that you can maintain your lifestyle and meet your financial commitments.
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What type of cover do I need and how much?
The right type and level of protection depends on your personal circumstances. You need to assess your income, savings, debts, family situation, and financial goals. Get a realistic handle on what level of income you would require. In addition, if you do have employee benefits you may have some cover in place. It’s about balancing affordability with adequate protection.
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How much does protection cost?
The cost of protection depends on several factors, including your age, health, occupation, lifestyle, and the amount of cover you choose. Most people are surprised by how affordable protection can be. For example, life insurance policies often start from just a few pounds a month less than the cost of a takeaway coffee. And usually the younger you start your policy, the cheaper it is. The key is to find the right balance between what you can afford and what gives you genuine peace of mind.
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Is it complicated to set up a protection policy?
Not at all especially when you have our support. While there is paper work and sometimes medical assessments required, we guide our clients through the entire process, from assessing their needs to selecting the right policy and completing the administration. We also make sure that policies are written in trust where appropriate, which can help ensure that payouts go directly to the intended beneficiaries and avoid unnecessary delays.
NEXT STEPS
Protection might not be the most exciting part of financial planning, but it’s one of the most important. And it is one that often raises the most questions. In a nutshell, it’s about protecting your home, your income, and your family’s future giving you peace of mind.
At Life Goals, we’d be delighted to help you with understand your protection options. We can guide you through the details and help you decide which works best for you. Just get in touch if you’re ready to connect!