Housing: Insurances and Protection November 2022
Protect your family – and yourself
The benefits of income protection have been showcased over the last three years during the turbulence of the pandemic years. With more economic uncertainty ahead, now could be the ideal time to take out a policy that protects your loved ones and yourself.
Awareness Week
Income Protection Awareness Week, originally scheduled to start on 19 September, was delayed until 17 October because of Her Majesty The Queen’s Funeral. When it belatedly takes place, the online series of events will discuss the importance of income protection in a stormy economic landscape.
Mental strain
Two thirds of consumers say their financial situation makes them feel stressed, anxious, or depressed, according to new research by the Income Protection Task Force (IPTF). Moreover, the same research also found that a third don’t have anyone to turn to for advice when worried about money.
Income protection provides crucial support and peace of mind. Knowing that you and your loved ones will not suffer financial issues should you suffer a major loss of income helps millions of people sleep more soundly at night. Protection policies can also include emotional support networks, providing further support that can help forestall financial woes.
Look after yourself
Surveys have shown that twice as many people insure their pets as themselves1. Although this desire to protect others is admirable, the lack of personal protection can be counterproductive since looking after number one also helps protect your dependants – including furry friends!
Could you survive on state benefits?
If you are unable to work and are eligible for statutory sick pay, you could receive £99.35 per week from your employer. Given that the average household spends £587.90 per week2, it is likely that this won’t be enough for most people to keep on top of all their outgoings.
Moreover, statutory sick pay only lasts for the first 28 weeks of illness. After that, it might be possible to apply for state benefits, but these will cover only the most basic living costs and will only be payable after rigorous assessment.
Protection when it’s needed
Ultimately, the only way to be sure of covering your expenses in the case of a prolonged illness or injury is by taking out an appropriate income protection policy for your unique needs.
If your income is essential for your family’s prosperity, income protection provides peace of mind that your financial situation will not dramatically worsen should you be unable to work. You do everything you can to provide for your family – let someone else look out for you!
Here for you
We’re here to take the strain off your shoulders and help you make the right decision to protect yourself and your loved ones.
As with all insurance policies, conditions and exclusions will apply
(1) Cirencester Friendly, 2022, (2)ONS, 2022
Giving up your insurance could be costly
As the cost-of-living squeeze starts to bite, many are looking to make savings on their monthly budget. Experts are warning families to think twice, however, before scaling back on essential protection.
Cutting back
The number of protection policies held by UK households has fallen by 8% (1) year-on-year, research suggests. Worse yet, two in five people (2) are now considering cancelling their life insurance policy in the near future.
A protection policy is an investment in your financial future – and the financial futures of your loved ones. Relinquishing this cover could be very costly.
Safety net
Life insurance pays out as a one-off payment to support your dependents, ensuring they will not face hardship once you are no longer here to support them. Income protection, meanwhile, exists to support you financially if you are unable to work due to illness or injury.
A hasty cancellation could end up costing you more should you later decide to take out a new policy. Premiums are determined by age and health so the longer you wait, the more you will probably end up paying.
Here to help
There are ways to bring down costs without cancelling your policy. Talk to us to see if your cover still matches your needs.
As with all insurance policies, conditions and exclusions will apply
(1) iPipeline, 2022, (2) NerdWallet, 2022
Alzheimer’s and Critical Illness Cover
World Alzheimer's Day took place on 21 September to raise awareness of the degenerative disease and some of the support mechanisms in place to help those affected.
This year, the special focus was on post-diagnosis support. One such protection is Critical Illness Cover, which provides you with a lump sum of money if you are diagnosed with certain illnesses or disabilities.
Alzheimer’s Disease is a critical illness, with symptoms that decline progressively. Receiving a one-off support payment at such a challenging time can be an enormous source of relief for you and your loved ones. The funds can be used for anything you want or need, whether supporting your everyday expenses or paying off a mortgage or medical expenses.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
What will it cost?
Financial products involve a commission, and I may need to charge a fee for the time I spend on your case. This will typically be £350 and is payable upon an application being processed.
Please call me for a free no-obligation discussion. I will advise you how to get the best possible mortgage deal for your personal circumstances.
Alicia Baker Consultancy
To find out about any of my financial services. Please contact me for a free no-obligation discussion. I can find you the most appropriate mortgages, home insurance and personal insurances, such as life and critical illness cover to protect you and your family.
Alicia Baker Consultancy is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply.
