Why Financial Protection is Essential for You and Your Family

Life is unpredictable. People insure their cars, their pets, even their boiler or their phone — and often forget to insure the most important things of all: themselves and their families. We all hope for the best, but it's worth preparing for the unexpected. Financial protection is what stands between your household and life's harder turns.

What is financial protection?

Financial protection covers a range of insurance products designed to support you and your family when something goes wrong.

Life insurance pays a lump sum to your loved ones if you die. It can clear outstanding debts, repay the mortgage, cover funeral costs and give your family some stability afterwards.

Critical illness cover pays a lump sum if you're diagnosed with one of the serious illnesses listed in the policy, such as cancer, a heart attack or a stroke. It can go towards treatment, rehabilitation or adapting your home, easing the financial pressure at a difficult time.

Income protection replaces part of your income if you can't work because of illness or injury. Unlike critical illness cover it pays a monthly amount, continuing until you're able to return to work or until you retire, so household bills and the mortgage keep being paid.

Family income benefit pays a regular income to your family if you die during the policy term, so they receive support over time rather than as a single lump sum.

Why it matters

Some illustrative scenarios — not real clients, but the kind of situation these policies exist for:

• Life insurance. A mother of two unexpectedly loses her husband. A life policy pays off the mortgage and covers household costs, so the family isn't forced to move at the worst possible moment.
• Critical illness cover. A self-employed electrician is diagnosed with cancer. His critical illness payout funds treatment and keeps the business going while he recovers.
• Income protection. The main earner in a family is badly injured in a car accident. Income protection covers the monthly bills, including the mortgage, throughout the twelve months she is unable to work.
• Family income benefit. After a sudden death, the family receives regular payments that let them maintain their standard of living and cover day-to-day expenses.

The benefits, in short

• Peace of mind — knowing your family would be financially secure.
• Stability — household expenses, mortgage payments and other commitments keep being met.
• Flexibility — cover can be shaped around your budget and your circumstances.
• Efficiency — writing a policy in trust can mean the payout falls outside your estate and reaches your family more quickly. Tax treatment depends on your individual circumstances and can change.

Review what you've already got

Life changes quickly. Moving home, changing jobs or having children all affect what cover you need. Plenty of people hold policies they took out years ago and aren't sure what they actually cover, or whether they're still suitable. We'll review your existing policies with you and tell you straight whether they still do the job.

How we help

Every family is different. Where it suits, all of these types of cover can sit within a single multi-benefit plan. Whatever shape it takes, we will:

• Recommend the cover that fits your circumstances.
• Obtain quotes across providers and compare both the cover and the premiums.
• Handle the whole process with you, from choosing cover to submitting the application.
• Work within your budget.
• Help you place your cover in trust where that's appropriate.

Read more about protection and insurance at PBS, or call us on 01524 888877, email advice@pbsfinancial.co.uk, or use our contact page.