Protection Planning: The Life Jacket Onboard

Insurance against accidents is a part of life. We have helmets for cyclists, lab coats for scientists, arm bands for young swimmers and life jackets for sailors so that when an accident does happen, we are protected. When it comes to our finances, the consequences of living without a financial life jacket can impact your everyday sailing, as well as your long-term voyage. This is why protection planning is important when financial planning for yourself and your family. Life should be able to weather any storm, even if you find yourself shipwrecked.

Having life jackets onboard is even more important when you’re sailing with children. As both a parent and Paraplanner, it’s clear to me that children bring changes, not just in the long term but in your everyday life. My boys are both under two and bring with them both happiness and a little bit of chaos. Making sure we have insurance cover in all areas of our life helps to give us peace of mind.

For example, when it’s a toddler with a plastic toy pig going against a very fragile TV, who wins? In my case, it was the toddler, and it looked like the TV wouldn’t be recovering from a toy-sized hole in its screen anytime soon. Thankfully, our home insurance meant that a situation that could have sent us into Peppa Pig withdrawal was easy and stress-free. With the correct cover in place, things that are unforeseen do not have to be unprepared for, whether that’s a broken TV or a far more serious circumstance.

No one likes to consider the ‘what ifs’. What if myself or my partner are injured or critically ill and struggle with a depleted income? What if we are both taken from our children in an accident? Knowing there is a plan in place that will provide life assurance will give you the security of knowing your dependents are provided for, no matter what happens.

At First Wealth, we can help you with protection planning by reviewing your annual income, health and family status to build a holistic financial plan tailored to you and your needs. This could include cover for:

• Critical illness, where a lump sum will be paid out upon diagnosis to ease financial strain if working becomes impossible while receiving treatment. It means that you can focus on getting well again, rather than the pressure of making up for lost income.
• Life Assurance, which protects your family in the event of your death. This can be tailored to your needs, depending on how much you are willing to invest and the term for which you wish to take out insurance. This way, you know your family and what’s important is protected.
• Wills and Guardians, providing a carer for your dependents if you and your partner both die prematurely. This ensures your dependents are provided for, with all the cover you can give them.
• Lasting Power of Attorney, in case you need someone else to make legal decisions on your behalf due to critical illness.
• Family Income Benefit, the basic form of life insurance that pays out upon your death to your dependents.
• Income Protection. On top of the lump sum of critical illness cover, this protects your income if you are unable to work due to illness or accident.
• Private Medical Insurance. This can help in cases of special treatment for critical illness not covered by the NHS.

At First Wealth, we frequently advise our clients on these measures in conjunction with creating their financial lifestyle plan, and we would be very happy to talk you through the options available to you. If you would like to speak to a Paraplanner, please get in touch.

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.