By Rachel Efetha, Chartered Financial Planner with Anstee & Co.

I’d like to tell you about my client David.  Eight years ago, his wife, Kath, was hit by a car when their youngest son was just two weeks old.  She was in a coma for six months and is now severely brain-damaged.  David had to give up his very successful job to care for her and their two children.  He also had to sell his very big house and buy a small terrace as he couldn’t afford the mortgage payments.  Although they receive various state benefits to enable them to get by, they are nowhere near the standard of living they previously enjoyed.  He is now having to draw on his pension early to give them some further funds to pay for things like school trips for the children. If only they had taken protection advice.

What could have happened if they had protection?

If Kath had taken out income protection or critical illness cover, they could be enjoying a much higher standard of living now and although that would not make Kath any better, it would take away the financial stress that David has undergone over the last eight years when his world fell apart.

Although this is a true case the names have been changed.

How Anstee & Co can help you cover the unexpected.

Accidents happen, as well as illnesses, if you know anyone who doesn’t have any provision for an ongoing income if they are unable to work through an accident or illness, then we can help.

We are a firm of Independent Financial Planners (IFA’s). Being independent means that the financial advice we offer is unbiased. We look at all the solutions that are available to you. Why not arrange a meeting today to see how we can help you design your financial future?  The meetings can be arranged at a time and location that is convenient for you. This maybe your home or at our office in Kettering, Northamptonshire

Also, our Financial Planners live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Wellingborough, Thrapston and Towcester in Northamptonshire.

We cannot stop the unexpected happening, but we can help you plan for when it does.

If you have any thoughts or comments on this article, “Protection for when the unexpected happens.”, then it would be great to hear your views.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).

By Rachel Efetha, Chartered Financial Planner based in Bedford.

Last year I took part in the Prudential Ride London 100-mile bike ride and took the opportunity to raise money for Bowel Cancer UK.  The reason I chose this particular charity is because a friend of friends, Mark, who I had met from time to time at social occasions, but not a close friend, had been diagnosed with stage four Bowel Cancer in 2016 and around the time I started training, the cancer had become more aggressive and spread.  It’s with great sadness to tell you that Mark lost his battle with cancer earlier this month.

Mark had just turned 44 and leaves behind a wife and two-year-old son, as well as an ex-wife and son.  Until just over two years ago, he had a very normal life like me and you.

Protecting you and your family

As a financial adviser, I’m often talking to people about protection and making sure that if anything happens to them, their dependents are financially provided for.  My last website article, published just a few weeks ago, focussed on income protection and critical illness and you can read it here, so today I will focus on life assurance.

When taking out a mortgage, most people with financial dependents have the sense to ensure that they take out life cover for the full amount of the mortgage to ensure it is repaid on death.  However, do they review it when they remortgage to pay off some debt/ pay for home improvements/ extend the term?  In my experience, this isn’t always the case.  I’ve met so many clients who have an old life assurance policy related to the original mortgage which now falls short of the required amount and term.

Once they’ve taken out the policy to cover the mortgage, some people feel they’ve done enough.  However, you need to give consideration to whether the surviving spouse will be able to afford to pay the household bills on a sole income, or even no income if they don’t work.  Even if the non-working spouse were to die and the breadwinner is the surviving spouse, life will be very different.  They might need to reduce their hours to fit around school runs or employ a childminder to do this for them, meaning that finances might become stretched.

What are the solutions?

This is where family income benefit comes in to play.  A family income benefit policy pays a monthly income in the event of death until the end of the term of the policy, which I normally recommend is around the youngest child’s 22^nd birthday, to allow for any higher education.  As it is a type of decreasing term assurance, the premiums are much more affordable than a flat lump sum and is also a lot easier for some to manage as it comes in every month to mirror the bills.  If you have children then a policy of this type is absolutely essential to ensure their financial future.

Mark told me last year that he was lucky enough to have an employer that has a good policy for long-term sickness and had sorted out his life assurance before he became ill so hopefully, that should relieve the pressure on his family at this distressful time for them.  Please remember that this story is real and there but for the grace of God could be any one of us in his place.  If you think you might be underinsured, please talk to us.

How we can help you and your family

If you would like to make an appointment with me or one of my colleagues then please contact the office. Our offices are located in-

Kettering, Northamptonshire

Birmingham, West Midlands

Stamford, Lincolnshire

London, Central London

We also make use of meeting rooms in Bedford, Rushden, Droitwich, Towcester and Northampton. Our initial fact-finding meeting is free and without obligation.

Other articles by Rachel Efetha. Chartered Financial Planner.

Income Protection – It will never happen to me.

Tax allowances – Use them or lose them.

Getting divorced? Will a financial adviser help you get the best deal?