When most people think about financial advice, they picture things like investing, saving for retirement, or reducing debt. While these are all important parts of building a strong financial foundation, there’s one area that often gets overlooked: financial protection.
But what exactly is financial protection? And why should it be a priority in your financial plan?
What Is Financial Protection?
Financial protection refers to the strategies and tools used to safeguard you and your family against unexpected events that could have a serious financial impact. This could include illness, injury, death, or even job loss.
In practical terms, financial protection often involves things like:
- Life insurance – Provides financial support to your loved ones if you pass away.
- Critical illness cover – Pays out a lump sum if you’re diagnosed with a serious illness like cancer, heart disease, or stroke.
- Income protection – Replaces part of your income if you’re unable to work due to illness or injury.
- Family income benefit – Offers regular payments to your family instead of a one-off lump sum if you pass away.
These products might not sound exciting, but they play a vital role in keeping your financial plan on track – even when life doesn’t go as planned.
Why Financial Protection Matters
1. Peace of mind
Knowing that your family would be looked after if something were to happen to you can bring immense peace of mind. It’s not about expecting the worst it’s about being prepared for it.
2. Maintains your financial goals
A strong protection plan acts as a safety net. It ensures that if your circumstances change suddenly, you won’t need to derail your long-term goals, such as retirement planning, home ownership, or supporting your children’s education.
3. Reduces reliance on savings
Without financial protection, a serious illness or job loss could mean dipping into your hard-earned savings or worse, going into debt. Insurance can help preserve your savings for their intended use.
4. Protects your loved ones
If you have dependents, financial protection isn’t just about you, it’s about them too. Whether it’s covering the mortgage, school fees, or everyday expenses, the right cover ensures your family remains financially secure.
Is Financial Protection Right for You?
The right protection depends on your individual circumstances: your income, lifestyle, family, and financial goals all play a part. That’s why it’s helpful to speak to a qualified financial adviser who can assess your needs and recommend suitable cover.
At EWM, we help clients take a holistic view of their finances, including making sure they’re protected when life throws them a curveball. Financial protection isn’t about fear, it’s about confidence. Confidence that no matter what happens, your finances and your future are secure.
Find out more more about financial protection from EWM.
Get in touch
We’re here to help. Get in touch for a no-obligation chat about your financial protection needs.