Personal Financial Protection Planning
Whether operating a pharmacy business or undertaking work as a Locum, there are a multitude of different areas of personal protection planning that need to be considered, some clearly more pertinent than others dependent upon a client’s individual situation. Whatever your needs or wishes in this area, our professional opinion is that these should be addressed as a priority, as the consequences of delay or failure to address can be serious.
When assessing personal financial protection, there are a number of key questions should be asked: -
- How will I meet my monthly commitments if I am unable to work due to a serious accident or long term ill health? Can I continue to pay the mortgage? How will the prospects for my business be effected?
- How will my long-term financial objectives be effected if I am unable to work for a significant period of time?
- How will my wife/partner and/or children cope if I were to die?
Financial security and peace of mind can be gained from constructing a financial protection portfolio that addresses these issues. In this regard, there are three types of insurance that should be given due consideration.
Income Protection
Designed to typically replace up to 50% of your earnings in case of you being unable to carry out your occupation, due to long-term ill health or disability. Particularly important is the insurers' definition of earnings. We have access to specialist insurers, which are able to take not only salary or self employed income into account but also personal dividends.
Life Assurance
Replacement of lost death in service benefits may be especially crucial to an individual who was previously permanently employed. However, there are various structures for life assurance policies that may be considered in order to address different needs, such as mortgage protection, level term assurance, indexed term assurance, family income benefit and whole of life cover. Where there is a change in circumstances, existing arrangements should always be revisited.
Critical Illness
Designed to primarily pay a lump sum in the event of you contracting any one of a whole range of critical illnesses such as cancer, heart attack, stroke, paralysis, blindness, and brain tumour. A good policy would cover at least 25 to 30 serious illnesses. However, this market is now evolving and some plans are now being launched with significantly more.
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