2025 has arrived and we are here to discuss why prioritising financial protection should be at the forefront of your yearly goals. Establishing a safety net not only safeguards your financial wellbeing but also provides peace of mind for you and your loved ones. The main areas that you need to think about are life insurance, critical illness and income protection.
Life insurance
Life insurance offers a lump sum payment to your beneficiaries in the event of your death, ensuring they are financially supported during a challenging time. This type of cover can cover items such as outstanding debts, mortgage payments or daily living expenses. Despite its importance, only 29% of UK adults have life insurance, either individually or through their workplace.
Critical Illness Cover
This protection insurance provides a lump sum if you are diagnosed with a specified serious illness such as cancer or heart disease. This payout can assist with medical expenses, necessary life adjustments or compensating for lost income during recovery. In 2023, the average critical illness claim was £67,267, with cancer being the most common cause for these claims, totalling £777 million.
Income Protection
Income Protection insurance offers a regular income if you are unable to work due to illness or injury, ensuring you can maintain your standard of living during periods of incapacity. In 2023, income protection sales reached a record 247,000, reflecting a growing awareness of the need for such cover.
Why its key to start the year with financial security
- With the UK’s economy contracting unexpectedly in October 2024, experiencing a 0.1% GDP decline, financial stability is more crucial than ever.
- Financial protection ensures that your loved ones are supported, maintaining their quality of life even in unforeseen circumstances.
- Knowing that you are covered allows you to focus on your health and recovery without the added stress of financial burdens.
How Can You Take Action in 2025?
- Evaluate your financial obligations, dependents and lifestyle to determine the appropriate level of coverage.
- Speak to one of our Financial Advisers who can provide you with personalised advice, ensuring you select the most suitable products for your circumstances.
- As life circumstances change, so should your financial protection. Reviewing regularly will ensure your cover is adequate for your circumstances.
Making protection insurance a priority in 2025 is a proactive step towards securing your future and that of your loved ones.
Get in touch today if you would like to discuss protection insurance with one of our Financial Advisers.
*Please note: Your home maybe repossessed if you do not keep up repayments on your mortgage. Protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions.