The main aspect of any good planning is first to consider protection. This is the foundation of any good planning because you should first ensure your family home and loved ones are protected for the here and now.
Thereafter, you can consider the extra benefits and ways of saving for the future.
Where you're single or married with a young family, protection is very relevant for many.
Some key questions to ask yourself are:
- What happens if I can no longer work and I lose my income?
- If I suffer a life changing illness how do I pay for medication, care or changes to the family home?
- Will my spouse or partner have to reduce hours to look after me?
- How will we continue to afford the mortgage and household running costs?
- How can we continue to provide for the children?
- If my spouse or partner passes away will I still be able to cover the outgoings?
- Will I need to pay for more help if I have a young family?
- Will I need to cut back on work to do more of the general household chores and look after the children?
All of the above are key risks which can be covered with appropriate protection, which may include:
- Life Insurance - To pay out a lump sum to clear the mortgage or provide capital to maintain extra costs until the children are old enough to be independent.
- Critical Illness- To provide cover to pay off the mortgage, cover medical expenses and changes to the family home.
- Income Protection - Provides an element of income to cover lost earnings which helps support the ongoing costs of having a home / family.
Having the above in place eases the stress and pressures should there be a loss of income or major personal change in your circumstances. This makes a huge difference at a time which is already hard enough as it is.
This is an area we focus on before looking at all the other options of planning and something I encourage everyone to consider.
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