Planning for the unexpected

The unexpected sometimes happens. The Brexit result, for example, came as a surprise to the bookies, pollsters and markets. On a personal level, how ready are you and your family for the unexpected?


As advisers we spend a lot of time making sure that our clients are as prepared as they can be to meet their expected financial requirements. The big ones for many clients are typically building up (or maintaining) their wealth tax-efficiently; medium-term investing to see their children get a good education; and providing for their income needs after they cease full-time paid employment or self-employment.


The problem with all of these is that they are based on the assumption that we have the necessary time available to achieve our plans and dreams. But life can be unpredictable as we rediscover daily. We need to make sure that our plans will have a good chance of success even if time is not always on our side.


The most obvious thief of our time is death itself and sometimes it happens when least expected. Life insurance can provide a financial cushion for those left behind if the worst happens and the cost is much lower than you might expect. For example, a 40 year-old in good health can be covered for £500,000 if they die in the following 20 years for a premium of around £25 a month. If you were to add £250,000 of critical illness cover to the policy, the premium would still be around £85 a month and a small price to pay for the family security such cover could bring.


Often overlooked is the loss of income that can occur when someone suffers from an accident or long term illness. When this happens, unless plans are already in place, wealth creation in all its forms goes on hold. Depending on their occupation, a 30 year-old could purchase an income protection policy for around £25 a month to insure that they will get £20,000 a year tax free, increasing by the RPI once they have been unable to work through disability for 13 weeks. The cover would continue until they went back to work, died or reached age 65.


Contact us to check your protection cover now and be prepared for the unexpected.