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Plan for the good, protect against the unexpected

Author: Tilney

Published: 10 Sep 2020

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What if the unwanted or unexpected happens? Would your plans fall apart? In this article, financial planning and investment company Tilney demonstrates why solid financial plans start with protection.

When people come to Tilney for help with their financial plans, they usually have a specific goal in mind. They may, for example, be focused on saving for retirement or investing for their children’s education. Rarely do they start by saying, ‘I want to make sure I can pay off my mortgage if something happens to me.’ But protecting against the unexpected is a cornerstone of financial planning. It comes first because, without protection, all other plans fall down. You need to plan for the good times but protect against the unwanted or the unexpected. 

What are you protecting against?

Protection usually involves taking out insurance policies to maintain your family’s financial stability should life not go according to plan.

People commonly take out protection so that they know their family will be provided for financially if they were to die, become seriously ill or have an accident that would prevent them from working, either permanently or for a long time. It’s also common to take out insurance to repay a mortgage or perhaps other debts and also to cover a future Inheritance Tax bill. 

Knock-on impacts

Death or illness can have a knock-on impact, leaving families in a precarious financial position. 

For example, someone who becomes seriously ill may be unable to look after their children and will face an unexpected childcare bill. Or mortgage payments and other household expenses could become a struggle following the death of a partner. It’s not nice to think about these things, which is why we so often don’t but they do happen. 

Different types of insurance

There are many different types of insurance available and the right one will come down to your individual circumstances and needs.

  • Life insurance. This pays out a regular income or lump sum when you die
  • Income protection. This pays a monthly income if you can’t work because you are ill or have had an accident
  • Critical illness or serious illness cover. This pays a regular income or lump sum if you are diagnosed with a serious illness or undergo certain complex surgeries.
  • Business protection. This protects against the death or incapacity of key staff.

It’s time to talk about protection

Don’t let your future plans fall down. A financial planner can help you identify potential risks or shortfalls and help you make sure your family is protected. With this in place, you can get on with your life, safe in the knowledge that whatever else happens, your family will be provided for financially. You should always remember that an insurance policy will end if you do not make payments and there will be no cash value unless a valid claim is made.

Insurance on a person’s life or health is so important – protection comes first because all other plans fall down without it.

Sally Beresford, Financial Planning Director, Tilney

As well as insuring yourself, if you have a partner, consider cover for them too.

Ruth Slavin, Protection Specialist, Tilney

About Tilney

Tilney is an award-winning financial planning and investment company that looks after more than £25 billion on behalf of our clients. At Tilney, your personal wealth is our personal responsibility.

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