Protecting ourselves and our family from the financial risks of future illness

Now, more than perhaps any other time in recent history, the nation’s thoughts are on the health and welfare of ourselves and our families. While health issues will understandably be at the forefront of our minds, there will without question, be a significant degree of concern regarding personal finances.

Therefore, it feels relevant to give some insight into the steps that can be taken to protect ourselves and our families from financial concerns at what would undoubtedly be an already difficult time. Peter Butcher looks at the different options available.

Appropriate cash savings

Having readily available cash savings is crucial. What constitutes an appropriate amount will vary from person to person, but the question you should ask yourself is “if my income stopped tomorrow, how long could I continue with my current lifestyle before I had to start selling funds from my invested assets?”

Income Protection Plans

One option would be to apply for an income protection policy which would pay out in the event that you cannot work because of illness or injury. It ensures you continue to receive a regular income until you retire or are able to return to work.

Critical Illness Cover

If you were to be unfortunate enough to be diagnosed with a specified illness during the term of the policy, this plan would pay out a one-off lump sum.

Various life assurance option

You may wish to consider applying for a life assurance policy to protect your family in the event of your death. A Term Assurance policy would pay your family a lump sum on your death providing in falls within the policy term. A Whole of Life policy is similar to Term Assurance apart from it is designed to remain in force for the policyholder’s entire life. Family Income Benefit would provide your family with an income for a set number of years e.g. until your youngest child is 21.

Private Healthcare

While there is no doubting the extraordinary job that is done by the NHS, Private Healthcare can provide you with quicker access to tests and treatments.

How can Clarion help?

At Clarion, we create a bespoke Financial Plan for each of our clients. This provides the cornerstone for all future discussions and influences the advice we give. An accurate Financial Plan enables us to stress-test various different scenarios to determine if, and to what magnitude, there will be a financial shortfall should something happen to you or your loved ones. This then allows us to identify the most appropriate insurance policies to address these needs and give you and your family peace of mind.

If you have any questions about the content of this article or any other Financial Planning issues, please feel free to get in touch.

Protecting you from the financial risks of future illness