A Guide To Protecting Your Financial Plan

Safeguarding the people and things that matter most

Guide To Protecting Your Financial Plan

Welcome to our Guide to Protecting Your Financial Plan. The right professional financial advice can give you the freedom to live life on your terms, and key to this is safeguarding your financial security by making sure you have adequate protection in place to care for the people and things that matter.

No life insurance cover

So it’s concerning to see that half (50%) of the UK’s mortgage holders have no life insurance cover in place, meaning that 8.2 million[1] people are leaving themselves and their families financially exposed if the unforeseen were to happen.

Research also shows that only a fifth (20%) of the UK’s mortgage holders have a critical illness policy, leaving many more millions at risk of financial hardship or losing their home if they were to become seriously ill.

Unable to work

A third (33%) admit that if they or their partner were unable to work for six months or longer due to ill health or personal injury, they’d be unable to live on a single income. And more than two fifths (43%) of those who couldn’t cope with a single wage say they would resort to dipping into their savings in order to survive.

Yet 43% say their savings would last for no more than a couple of months, and 15% don’t even know how much they have, meaning they could be relying on backup which doesn’t actually exist.

Mortgage arrears

Just under a quarter (23%) could only afford to pay household bills for a maximum of three months if they or their partner were unable to work, and 23% could make a maximum of just three monthly mortgage payments. Another 15% admit they’re not actually sure how long they’d be able to cope with their mortgage payments.

Welfare reforms make the case for financial protection all the more pressing. A quarter (25%) of mortgage holders who say they’d be unable to live on a single income if their partner was unable to work also admit that they’d rely on state benefits to ensure they could manage financially. Changes to Support for Mortgage Interest, which is the only safety net in place for many families if they were unable to pay their mortgage, mean that people now have to wait 39 weeks before receiving this benefit instead of the previous 13, which could be too late for many if they have no other protection in place.

Are you putting you and your family at significant risk?

None of us want to think about the worst, but these findings show that there are an alarming number of mortgage holders who are putting themselves at significant risk by failing to arrange cover for the unexpected. Many people believe that they’ll be able to rely on the state if the unforeseen happens, but recent cuts to welfare benefits are exacerbating their vulnerability. To review your protection requirements, please contact us – don’t leave it to chance.

Life InsuranceA Guide to Protecting Your Financial Plan:
Life Insurance

Getting the right life insurance policy means working out how much money you need to protect your dependants. This sum must take into account their living costs… Read More »
Different Types of Life InsuranceA Guide to Protecting Your Financial Plan:
Different Types of Life Insurance

‘Single life’ policies cover just one person. A ‘joint life’ policy covers two people, and when one person on the policy dies the money is paid out and the… Read More »
Term Life InsuranceA Guide to Protecting Your Financial Plan:
Different Types of Life Insurance

With a term life insurance policy, you choose the amount you want to be insured for and the period for which you want cover. This is the most basic type of life… Read More »
A Guide to Protecting Your Financial Plan:
Whole-of-Life Insurance

A whole-of-life insurance policy is designed to give you a specified amount of cover for the whole of your life and pays out when you die, whenever that is. Because it’s guaranteed that you’ll die at some… Read More »
A Guide to Protecting Your Financial Plan:
Critical Illness Cover

We never think a critical illness is going to happen to us, especially when we feel fit and healthy, but it can and does. If the worst does happen, it’s important to make sure you’re financially protected… Read More »
A Guide to Protecting Your Financial Plan:
Income Protection Insurance

No one likes to think that something bad will happen to them. But, if you couldn’t work due to a serious illness, how would you manage financially? Could you survive on savings or sick pay from work? If… Read More »
A Guide to Protecting Your Financial Plan:
Making A Will

Your will lets you decide what happens to your money, property and possessions after your death. If you make a will, you can also make sure you don’t pay more Inheritance Tax than you need to. It’s… Read More »
A Guide to Protecting Your Financial Plan:
Power of Attorney

A Power of Attorney is a legal document that allows you to give someone else the legal authority to act on your behalf. There are several different types of Power of Attorney. A Lasting Power of… Read More »
A Guide to Protecting Your Financial Plan:
Inheritance Tax

Protecting your estate is ultimately about securing more of your wealth for your loved ones and planning for what will happen after your death to make the lives of your loved ones much easier… Read More »
A Guide to Protecting Your Financial Plan:
Setting Up A Trust

The structures into which you can transfer your assets can have lasting consequences for you and your family, and it is crucial that you choose the right ones. The right structures can protect…. Read More »

 
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Source data:
[1] Calculation: YouGov sample of 5,161 respondents, 1,682 of whom are mortgage holders, which equates to 32.6% of the population. Using ONS population data – 50.5 million adults in UK – 32.6% of 50.5 million is 16.46 million. 50% of UK adults don’t have life insurance, and this equates to 8.23 million people.

Scottish Widows’ protection research is based on a survey carried out online by YouGov who interviewed a total of 5,161 adults between 28 January and 4 February 2016.