Financial planning

Ill health - ways to protect you and your family

Colin Dyer

It might seem obvious but the perfect time to plan against the risk of future illness is whilst you are in good health.


Planning against the risk of a future illness

It might seem obvious but the perfect time to plan against the risk of future illness is whilst you are in good health.

Our cash-flow forecasting software allows us to look at a variation of scenarios to see how your circumstances could be affected, such as your income suddenly stopping, or by a fall in investment markets.  We can then establish which options you could consider to mitigate the risk.

Make sure you have cash savings

One option to consider is to keep more money than you think you need available in cash.  If you suddenly fell ill, having extra funds easily available to you could take away any initial financial pressures by supplementing a sudden reduction in income.  It could also assist with the need for larger expenses, such as specialist private treatment or adapting your home. 

Apply for private healthcare (Private medical insurance ‘PMI’)

You could also think about private healthcare, as private referrals and testing for diagnostics are much quicker than the long waiting lists we experience on the NHS. This might be particularly important if you are self-employed and your income depends on your ability to work.

Take out an income protection plan

You could consider arranging an income protection policy if your employer doesn’t provide one, or if you are self-employed.

Consider critical illness cover

Having a critical illness policy in place means that if you were diagnosed with a specified illness during a timeframe chosen at outset, you would be paid a lump sum. This could help support you and your family.

Look at options for life assurance

If you have dependants, you could consider applying for a life assurance policy to protect your family against a future loss of income. There are several options to consider including cover for a set term that pays your family a lump sum on your death (term assurance) or an income for a set number of years for example until your youngest child is 21 (family income benefit). No cash in value. In relation to income protection, critical illness and life assurance.

If you have any further questions, on the back of this blog, please do not hesitate to contact us to book your free, no-obligation consultation today, where one of the team will be happy to assist.