You work 40 hours a week for your money goals. But how much thought do you put into protecting your loved ones? 

It’s not nice to think about worst case scenarios, but they can happen. And protecting your money is the best way to protect those you love and care about. Find out how protected your money is in our 30-minute webinar. 

When we think about our money, protection is one of the things that’s often overlooked.

Worst case scenarios are never nice to think about, but having protection in place is like a safety net for those moments.

It’s a bit like a toolbox you have at home – you hope you’ll never have to use it, but it’s there for you if you need it.

Protection is there to help you and your family in a worst-case scenario. We always hope for the best, but it can be invaluable to prepare for the worst. 

There are 3 main types of protection available. 

Income protection insurance

This is a long-term insurance policy that gives you a regular income if you’re not able to work. 

You receive this until you’re able to work again or you retire. 

The insurance replaces part of your income, typically between 50-65%. 

The payments usually don’t start immediately. You might have to wait for a period of time before you get the first payment. This ‘waiting period’ is the amount of time between not being able to work and receiving your first payment. It can be from 1 week up to a year depending on the terms of your policy.  

Critical illness cover

This is a tax-free, one-off payment if you’re diagnosed with one of the illnesses that’s listed in the policy. 

Some examples of these critical illnesses are: stroke, heart attack, certain types of cancer, multiple sclerosis, major organ transplants, Alzheimer’s disease, Parkinson’s disease

Life insurance

This insurance allows your loved ones to be provided for if the worst thing happens. 

It’ll give your beneficiaries a set lump sum of cash if you pass away while covered by the policy. 

You can choose the amount of cover you need based on your everyday money needs. 

Other types of insurance include: pet insurance, home contents insurance, travel insurance, car insurance and personal indemnity insurance. Personal indemnity insurance helps protect your business in case a client loses money after using your product or service. 

Having a plan for your money is one of the best and most empowering things you can do for your future. 

Usually people focus on pensions, investments and the things they have control over. But one important part that’s often overlooked is protection. 

It’s not the most pleasant or fun thing to think about, but sometimes the worst case scenario can happen. 

We don’t like to think about being seriously ill or passing away in the foreseeable future. But if this did happen, where would this leave you from a financial point of view? How would this impact your lifestyle and family?

By putting some kind of protection like insurance in place, we can make sure that we and our loved ones are looked after. Protection can help lessen the impact of a lack of income from illness or death.

It helps give you the peace of mind that if the worst were to happen, you and your family won’t have to struggle and their needs will be met. This is especially true if you have large financial commitments like a mortgage.  

If you already have insurance, you might need to review it if your circumstances change. For example if you move home, get married or start a family.  

Life insurance is one of the three most common types of protection. 

It’s important to think about if you have people that depend upon you from a financial point of view. 

If the worst happens, you want to know those you love aren’t struggling with money worries because you’re no longer around to help provide for them. 

Leaving a big you-shaped gap in the family can be hard enough without the additional stress of worrying how your family will make ends meet. 

Some additional reasons that this is important could include: 

  • You’ve just got married and want to support your spouse
  • You’re having a baby and you’ll know their nursery fees and cost to raise them is sorted. This can really add up over the years
  • Some policies can be used to contribute towards funeral costs. These can be quite expensive, so you’ll avoid any extra money stress at an already difficult time. 
  • It can be used to cover inheritance tax
  • You’ve just bought a house and/or are still paying off a mortgage, especially if there’s still a long term on it.

Life insurance isn’t the most pleasant thing to talk about. But think of it like a toolbox you might have at home. You hope never to have to use it, but it’s there for you if you need it.  

Planning for life goals and making them happen is one of the most exciting things we can do. 

No one really likes to think about the final life milestone. But since it’s one we all come to sooner or later, it’s worth doing.

If you’re worried about your family and whether they’ll be OK financially if anything happens to you, this is where life insurance comes in. Life insurance allows your loved ones to be provided for financially if the worst happens.  

This type of policy gives your beneficiaries a set cash lump sum if you pass away while covered by the policy. You can choose the amount of cover that’s right for you based on your lifestyle. 

When deciding the amount of life insurance cover you want, it’s helpful to look at your everyday expenses as well as your fixed costs such as your mortgage and bills. 

You might also want to think about how long your children will be dependent upon you and when your partner might want to retire. 

Your life insurance should allow your loved ones to be able to cover all of this in the longer term. 

While it’s not the most fun thing to think about, having life insurance is an amazing way to protect those you care for. 

There are three main ways to get your will written: 

  • use a solicitor
  • use a will-writing service 
  • create a DIY will

Which you choose will depend on how complex your circumstances are and how much you want to pay. 

Here are some things to consider :

What’s the cost?

Generally the cost for a solicitor to write your will, starts at around £200. A will-writing service is likely to be under £100. DIY wills, as the name implies, will be free.  

Are they regulated?

Unlike many areas of financial services, will-writing is not a regulated market. But, because solicitors are regulated professionals, if you use them you’re covered by a range of valuable protections. If you create a DIY will you’re essentially on your own.

Are they a member of a recognised professional or trade body?

If you’re thinking about using a will-writing service, it’s worth checking whether it’s a member of a recognised professional or trade body. This can include the Society of Trust and Estate Practitioners, the Institute of Professional Willwriters (IPW) or the Society of Will Writers (SWW).

Whichever option you choose, make sure that you understand what is included in the service, and what protections are offered as part of the deal.

Are you thinking of making a will?  

Besides deciding who gets what, here are some questions to consider to make sure you’re ready to get started. 

  1. Who do you want as the executor?

The executor is the person you officially choose to carry out your wishes.

  1. Make sure your will is legal
  • At the start of the will, it should state that it revokes all others. If you have an earlier will, it’s better to destroy it.
  • It must be in writing, signed by you, and witnessed by two people.
  • You must have the mental capacity to make the will and understand the effect it will have.
  • You must have made the will voluntarily and without pressure from anyone else.
  1. Consider areas of potential complication

Things can get complicated when there’s no official paperwork. For example, if you share a property with someone who isn’t your husband, wife or civil partner it’s important to consider the right they hold to the property. 

  1. Decide where to store your will

Once you’ve created a will, it’s usually stored with a solicitor and you get a copy. Most charge a small fee for this. If you’d rather store it yourself, you could keep it at home but this isn’t really recommended.

Unless you’re Hamlet, thinking about death – let alone your own death – is probably not high on your list of priorities. 

Your will lets you decide what happens to your money, property and possessions after your death. It also allows you to choose someone to look after any children under the age of 18. This person will become their legal guardian until they turn 18.

If you pass away without a will, your wishes regarding who gets your belongings, and who looks after your children, may not be carried out. Also, your family could end up spending a lot of time, money, and emotional energy to settle things after you’re gone.

It’s particularly important once you’re married or have assets such as property, large sums of money or shares. With a will in place, it’s clear who’ll look after your estate and where your assets go.

It can also ensure your partner’s provided for. If you aren’t married or in a civil partnership, your partner won’t automatically inherit anything. This means if you’re lifelong partners, but you’re not married, they aren’t entitled to anything by law. Having a will in place makes sure they’ll be looked after.

By establishing trusts in your will, and making use of special tax bands, you can make sure your loved ones don’t pay any more inheritance tax than necessary. 

Benjamin Franklin famously said, “in this world, nothing is certain except death and taxes.” (Actually, someone else said it first but he made it famous so we’ll allow it.)

And since we know this, it’s better to be prepared for it. Not just for our own peace of mind, but also for our loved ones. 

For this, you’re going to need a will. But what exactly is a will and what does it do?

A will is a legal document that spells out your wishes about what happens to everything you own after your death. It also covers the care of any children who are under 18 at the time of your death. 

It can include:

  • Property – Who gets your house or flat?
  • Possessions – Who should get your priceless artwork,expensive sports car, or beloved collection of teddy bears?
  • Financial assets – How will your savings, investments and pensions be divided?
  • Business interests – Who will take over the family business?
  • Children – If they are younger than 18 you’ll need to decide on a guardian
  • Pets – Who would you like to look after them? 
  • Funeral arrangements – Would you prefer to be buried or cremated? Have your ashes turned into a diamond family heirloom or launched and released into space?

For a will to be valid: it must be in writing, signed by you, and witnessed by two people. You must have the mental capacity to make the will and understand the effect it will have. And you must have made the will voluntarily and without pressure from anyone else.

Having a will is so important because it ensures your wishes are respected and your children will be looked after. Wills can be cheap or free to make, and will writing services can be found easily on the internet.