If Something Happened Tomorrow

By the end of this e-book, you will know the cover you have, the cover your family actually needs, and the gap between them, in real numbers:

• A clear understanding of what each type of personal protection actually does for you
• The real number your family would need to stay on their feet if you were not there
• An honest read on whether your workplace cover is doing the job you think it is
• The four mistakes to avoid that quietly leave families exposed at the worst possible time
• The triggers that should make you review your cover, so it stays in step with your life

Why Personal Protection Matters

A bit of life cover through work, taken out without much thought. A policy attached to the mortgage that has been running for twenty years. A vague sense that the pension has life cover on it. For most people, that is the whole picture. The gap between what people think they have, and what they actually have, is often the difference between a family that copes and a family that does not.

The harder question is not whether you have cover. It is whether you have the right cover, at the right level, for the life you have actually built. A new mortgage, a new baby, a partner whose salary has changed, a job move that ends your workplace cover, all of it shifts the picture. Protection that was right five years ago is rarely right today.

What is Personal Protection?

Personal protection is the umbrella term for the insurance products that pay out if you die, become seriously ill, or are unable to work due to illness or injury. There are four main types, and most people need at least two:

• Life insurance: a lump sum to your family if you die during the policy term
• Critical illness cover: a lump sum if you are diagnosed with a serious illness
• Income protection: a regular income that replaces 50–65% of your salary if you are unable to work
• Private medical insurance: faster access, choice of consultant, private rooms

The right combination depends on your situation, but knowing what each one actually does is the starting point. The single most common mistake is over indexing on life cover and ignoring the one that pays out for decades.

Do I Need Personal Protection?

If you have a mortgage, a partner, children, a business, or anyone whose financial life depends on yours continuing as it is, the answer is almost certainly yes. The question is what type, at what level, and through which provider. You may want to review your protection if you want to:

• Make sure your family could stay in their home if you were not there
• Know your income would keep coming in if illness stopped you working
• Avoid the common mistake of holding cover that would not actually pay out
• Have a plan that gets reviewed as your life and family change

Protection advice is usually free of charge, because it is paid for by the insurer rather than by you. The earlier it is put in place, the cheaper it tends to be, and the fewer health related restrictions apply.