Does Your Family Work Without You?

Would your family struggle most without you or the Netflix subscription?

It’s an unlikely question. But have you considered what you’re really worth to your family? What would happen if you weren’t there?

It’s easy to ignore those thoughts when things are going well. When the career is progressing nicely, the home sorted, and the family happy and healthy, it’s natural to assume that everything will carry on being fine.

But what if it didn’t work out that way. None of us know what’s around the corner. If a serious illness or tragedy strikes, the financial stability you’ve spent years creating could be stripped away overnight.

The reality is that many of us don’t plan for the worst happening. Only 31% of people in the UK have life insurance cover¹. The main reason given for not having it is because it’s too expensive, even though life insurance policies can start from as little as a few pounds a month.

Yet twice as many people pay an average monthly subscription of £39 for their gym membership or streaming service². Maybe it’s time for a rethink of our discretionary spending.

If you die or suffer a serious illness, the consequences of not having the right protection in place can be devastating. Coping without you would be tough enough for your loved ones. But what if it meant their financial security disappeared too?

Protection planning is a simple way to ensure they are looked after, whatever happens.

Your circumstances and budget will determine your protection strategy.

Here are the key options you need to think about:

1. Life insurance is a policy that provides a lump sum or monthly benefit if you die or become terminally ill. If people rely on you financially, or rely on your income, or if you’ve got any debts such as loan or mortgage, you need life cover. There are several types available to suit different situations and budgets.
2. Critical illness cover pays out a lump sum if you are diagnosed with one of a large number of specified illnesses.
3. Income protection will pay out a guaranteed income if you are unfit to work for a long period of time due to illness or injury. If you don’t have any dependants or debts but are reliant on yourself to generate an income, you should consider critical illness and income protection cover.

Is there a limit to how far you will go to protect your family? Hopefully it’s further than the cost of Netflix. The right planning will give you and your loved ones peace of mind that, whatever happens, they will be ok financially.

¹ Statista, December 2022

² riftrefunds.co.uk, July 2023