Many people might be struggling to justify paying their protection cover during this cost-of-living crisis, however here are some reasons why you should reconsider.
Protection cover includes the likes of income protection, critical illness cover and life insurance. Having one or more of these policies can help you feel more in control of your finances and provide you with a strong financial safety net.
The value of protection cover is sometimes invaluable. For example, if you buy a new home with a loved one and have a mortgage together, life insurance can provide financial support for the other if something happens to either of you.
Protection cover can be seen as an additional expense that you might not currently need, especially during a cost-of-living crisis. However, here are some reasons why you should consider protection cover
Can provide you with an income if you are unable to work
Following the spike in the average cost-of-living, having income or critical illness protection cover in place could help ease the day-to-day pressure of maintaining daily finances. It can also act as a financial cushion, as it’s unlikely that the State funding will be enough to support you if you’re unable to work for a long period of time.
Protects your loved ones
Life insurance is a policy that helps minimises the financial impact of your death on your family by paying out on your death. Your family can use this to help with funeral costs or to help them continue to meet everyday expenses such as mortgage or rental repayments.
Don’t depend on your savings as a safety net
Income protection and critical illness cover provides financial support if you’re unable to work due to an accident or illness. If you simply can’t afford to take this out at the moment then, aim to have at least three months’ worth of easily accessible savings in case you lose your job.
Lots of people are currently looking for ways to save money during this cost-of-living crisis. It might be tempting to cut back on things you don’t need right now but consider the potential impact of not paying any existing premiums.
If you would like to speak to us about protection cover or alternatively review your current protection cover, then please get in touch.
*Please note: These types of plans typically have no cash in value at any time and cover will cease at the end of term. If premiums stop, then cover will lapse.
*Last updated 15.02.2024