We try to protect everything we buy to ensure that it lasts long. From a mobile phone to a car, we do everything we can to keep them protected. We buy car covers, phone cases, and what not to protect all the things we buy. Should you not then seriously consider protecting the most valuable thing in your life – your life itself? That’s the first question we ask as your financial advisor in Cardiff.
The importance of protecting your life, your wealth and your income can’t be emphasised enough. And yet, more than 50% of the UK’s population is either uninsured or has insufficient coverage. No wonder then that in the event of a serious illness or a tragedy, people dwindle into financial crisis.
Whether you have just started your career or are on your way to retirement in a few years, protection is without doubt important.
Here are some important insurance policies all of us must have.
A life insurance policy covers those who are financially dependent on you. If your spouse, parents or kids would suffer financial burden if you died, life insurance should be your number one priority.
Consider your annual income and multiply it by the number of years you have planned to stay employed. Your life insurance policy must cover this amount at the very least in the unfortunate event of your death.
What happens if you were to suffer a serious injury or illness? What kind of lump sum amount would you need to ensure your standard of living stays the same?
A critical illness cover can help you manage bad times. Of course, the trauma of the tragedy will only heal with time, but the loss of income can be managed when you have appropriate insurance.
Estate planning should be an important part of your protection plan. Protection isn’t just about protecting your life and income, it’s also about protecting your wealth. In the absence of an appropriate estate distribution plan, your assets might be distributed unfairly and in worst cases, might further complicate everyone’s lives.
Give due consideration to each of the aspects discussed above for they all are important in equal measure. Do not ignore one or favour one over another. Protection must be holistic. Should you need any assistance choosing the right protection products or have any questions, feel free to get in touch with a financial advisor. Based in Cardiff, we are a leading IFA with years of experience. Contact us today to get started.