‘Change is the only constant in life’ is an old saying supposedly dating back to ancient Greece. It nods to the fact that it’s not a matter of if the unexpected will occur, it’s when. In other words, there’s nothing we can do to stop life happening, for better or worse. What we do have control over is how we prepare ourselves.
Taking out financial protection is one way you can do this. It helps to provide a safety net which you and your family can fall back on if needed. This might be because you fall critically ill, for example. You may have loved ones that rely on your support or bills that need paid. Knowing you've got a backup plan in place could mean one less thing to worry about, and possibly even a better night's sleep.
Our financial advisers can recommend a protection plan that works for your individual needs. This might include:
Income protection
There’s a good chance that your salary is your main source of income. Because of this, preserving your earnings often forms the bedrock of any protection strategy. Income protection does just that, if you have to take time off work – perhaps because of an accident or serious injury – then you'll still receive some of your income. Most policies have a waiting period between when you’re unable to work and when you can receive payments. They also usually have a limit on the amount you can cover yourself for.
Life cover
It’s not something anyone particularly likes thinking about – but facing up to what could happen after you die is essential. Would your family be able to manage financially? With life cover, answers to questions like these have the potential to be positive.
It's perfectly normal to insure things like our homes or cars, so why shouldn't we take the same precautions with our lives? Life cover provides your beneficiaries with a tax-free lump sum if you die within the term of cover. This can help towards financial commitments which your loved ones might be left with, such as a child's education. We can recommend life cover that suits your circumstances, as there are different options available.
Critical illness cover
Critical illness cover pays out a tax-free lump sum if you're diagnosed with a serious illness that's listed under the plan. Typically, these are life-threatening conditions such as a type of cancer, heart attack or stroke. There's a chance you might never need it, but it's often better to be safe than sorry. It can be another way of helping those closest to you financially.
By working with you to understand what expenses you may need to cover if you were to fall critically ill, we can advise how much cover you might need. This will be different for everyone, so it's important we tailor things appropriately for you.
Over 50s cover
This is similar to life cover in the way that it pays out a tax-free lump sum which can help loved ones after your death. It can be particularly useful in supporting the likes of funeral costs, for example. Considering these can run into the thousands, it can be a great financial help at an emotional time. Although, it doesn’t have to be used for anything in specific.
It covers your whole life, meaning it pays out regardless of when you die. What you do have to be aware of is that, from the point of taking out cover, there’s a time in which it won’t pay out – usually a year or two. Depending on how long you live, there’s also a chance that what’s paid out could be less than the premiums you’ve paid in. This is because the amount of cover is fixed, meaning inflation can eat away at its value. If you stop paying your premiums, your cover will stop and you won’t get anything back. In short, there are a few things to weigh up before taking out over 50s cover, and we can help you understand how everything applies to you.
How we can help
Taking proactive steps when protecting your family's welfare can make a world of difference. And there's no better time than the present to put the wheels in motion. We can help by understanding your needs and developing a plan that has these at its heart. We'll set everything up and take care of the paperwork so you don't have to. We'll ensure your protection plan has the right building blocks in place for you, as not everyone requires the same features. This might include how long you may need your plan to last, or if you have any dependents that need covered.
We believe less can definitely be more. So the advice recommendations we make are from a carefully selected range of products. Using a focused and controlled approach allows us to develop an in-depth knowledge of the products, so we can safely and confidently recommend a solution that’s right for you. This is known as restricted advice. There will be a charge if you decide to go ahead with our recommendation.
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"M&G Wealth Advice” is a trading name of M&G Wealth Advice Limited which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 5739054. Authorised and regulated by the Financial Conduct Authority.