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Life is Full of Surprises, But You Can Cover Your Bases

The thing about surprises is that you don’t know they’re coming. At any point, life can be changed forever, it’s important to be prepared

01 June 2021

life is full of surprises

Often, sound financial planning is viewed as a way to open up your world. You can buy your first home; buy your investment property; see your retirement funds rise with clever investment; put your kids through university.

But there is more to account for than life’s enjoyments.

We all understand that at any moment life can throw a curveball – something that requires immediate financing, or a break to properly care for yourself or loved ones, or both.

Sound financial planning can cover these bases too. Whilst these can’t stop the unfortunate from happening, there are three primary solutions you can factor into your wealth management to lessen the impact of these times.

Below we’ll cover how you can incorporate protective plans in your long-term thinking to put a safeguard in place,  in the case of an emergency.

Life Cover

Let’s start with the obvious one, and that is the worst case scenario of a death to either yourself or your partner.

Dealing with this shock is difficult enough, so avoiding stress around the financial implications can mean the world to those left behind.

There are many things to consider, including the lower end costs like funeral plans and lesser debts, through to outstanding mortgages and even Inheritance Tax.

Having an appropriate level of life insurance is a critical part of financial management, and not one to be avoided.

As with so many things in life, it’s not needed until it is.

Income Protection

Many people rely on a bulk savings amount as insurance against loss of income. This could occur through an injury, a deterioration in health, or a myriad other things.

The problem with using your savings pot to cover loss of income is not only that it is a finite resource – it also removes those savings for future use, or in the case of an emergency.

Income Protection plans provide some level of replacement income, meaning you are able to protect your hard-earned savings and investments whilst maintaining quality of life.

You can then focus on what’s important: your health.

Critical illness Cover

In some ways this can be similar to Income Protection, in that they are often a response to the same situation. But Critical Illness cover allows you to make the changes, or pay the bills, necessary to enable continued independence and an enjoyment of life.

This cover can help pay for changes to your home or business, cover time away from work, or pay for specialist medical treatment.

The time is now

The thing about surprises is that you don’t know they’re coming. At any point, life can be changed forever, and it’s important to be prepared for this.

If you feel you would struggle to account for one of the above situations, contact us today for a quality assessment of your position and some friendly advice to set you up for the future.

Written By

Dave Relfe MCSI DipPFS CertSMP

Dave is the principal mortgage and protection adviser at Think Plutus. He has more than 15 years of experience in financial services and holds the Diploma in Financial Planning from PFS, Investment Advice Diploma from CISI, and the Certificate in Advanced Mortgage Advice from the Society of Mortgage Professionals. He has devised the unique Think Plutus approach that has helped many clients, from first-time buyers to buy-to-let investors and property developers, to people looking to remortgage or release equity from their property. Connect with Dave on LinkedIn.

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