Have you got all bases covered?
We all have dreams and aspirations about our futures, our retirement and for our families. These are exactly the goals that a financial adviser will work through with you and help you arrange your finances in the best way to support you to achieve what is possible.
But what happens to these plans and aspirations if life throws you a curveball? Have you also planned for the unexpected?
It is commonplace to put provision for the unexpected when you organise a mortgage, but have you actually given thought to your needs over and above this?
If anything, the COVID 19 pandemic has shown us that life does throw us curveballs and we adapt to cope with these. When the pandemic hit, it brought home the reality of the low level of Statutory Sick pay. Could you survive on £95.85 per week? It is crucial that we all have income coming in to pay our bills (in excess of our mortgages and rent). Have you actually considered what bills and subscriptions you pay each month? Some of these you could live without, NetFlix, Amazon etc, but council tax, food even broadband these days is not a luxury.
As a starting point, you would need to find out whether your employer offers such schemes and if so, the benefits that these provide. From there, a financial adviser can work through the risks to your financial wellbeing, helping you to prioritise your needs and those of your family.
We all hope that we will never need to use it and some see insurance as a waste of money, but for those who have been unfortunate to have to use it, it has been invaluable and a lifeline in some cases.
If you have existing personal policies these are worth a review too. Maybe your circumstances have changed, meaning that what was set up some years ago may not now be suitable for your needs. Additionally, insurance providers have updated the service they provide. Some policies now include access to a remote GP and a second GP opinion. Most providers offer some form of emotional support service now, and are doing their best to provide counselling. There is a huge range of health and wellbeing support and many of these support services can be used regardless of whether or not you are making a claim.
Finally, life policies have suffered bad press in years gone by however, figures released by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out more than £5.7bn in protection claims in 2019 – a year on year increase of over £470m on 2018 – with the percentage of claims paid rising to a record figure of 98.3 per cent.
No matter your age and stage of life, can you afford not to review your protection needs?