How would your family cope financially if you were no longer around? What happens if you could no longer work or had a prolonged illness? Do you have an emergency fund in place? Would your business struggle if you lost a key partner in the firm?

No one knows what’s around the corner, which is why it’s important to financially protect your family and safeguard their future. We can help you choose the right protection to give peace of mind that your family can be financially secure – whatever life may throw at you.

60% of parents don’t have a valid Will – meaning they either don’t have one at all, or the Will they do have is out of date.

* Royal London

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Things to consider to financially protect your family

Do you need Income Protection?
Would you be able to cope if you could no longer work?
Do you need an Emergency Fund?
Is your Will up to date?
If you already have a life assurance policy, is that sufficient cover?

Do you need Income Protection?

Serious illness or incapacity can place a family in a financially difficult position. You may need the support of childcare or expensive medical care. You or your partner may be at risk of having to move from the family home, or struggle to pay back other borrowings. Your family’s lifestyle and children’s schooling may be affected.

 

Whilst it’s unpleasant to imagine these scenarios, taking out the right financial protection will help bring you and your family some peace of mind.

Would you be able to cope if you could no longer work?

It’s natural to be looking to the future in a positive way, but when the future wellbeing of your family is at stake, it also makes sense to recognise that life can take unfortunate twists and to plan appropriately.

 

If you were unfortunate enough to be seriously ill for a long period of time and unable to work, your income could be at risk. Policies such as Critical Illness Cover (CIC) and Income Protection Insurance (IP), are designed to ensure that you will be able to support your family in these unfortunate instances. At Investec, we can help you find the right type of protection to meet your particular circumstances.

Do you need an Emergency Fund?

Ideally, you should have an emergency fund to give you a buffer against financial difficulties caused by events such as redundancy, long-term illness or losing a business partner. Typically, this should be enough to last 6-9 months as some protection policies have a deferred period before they pay out.

Is your Will up to date?

A legal Will is the most important document you can have for protecting the interests of your family. Dying without a Will could result in an undesirable outcome, an unexpected Inheritance Tax bill, and perhaps worst of all, the forced sale of a family asset, such as your family home.

 

Even if you already have a Will in place, it might need updating. Inheritance Tax legislation is changing all the time and your family may lose out if your Will isn’t amended to take account of changes.

If you already have a life assurance policy, is that sufficient cover?

You may already have a life assurance policy in place, but usually the payout will form part of your estate and may be subject to Inheritance Tax (IHT). However, by writing the policy in trust, the proceeds can be paid directly to your beneficiaries and there should be no IHT liability. Your family will also typically receive the money faster, as the payment won’t have to go through probate.

 

It’s also essential to check what benefits are offered by your employer, or, if you’re a business owner, what benefits or protection you could establish through your business. At Investec, we will help you identify any potential shortfalls and recommend the right type of protection to meet your particular circumstances.

Mother and daughters in bright coats walking along a lake
Sam P, Tarporley

The Financial Planner I met with sensed my long-term concerns, and worked hard to build a personal relationship with me and a full understanding of our requirements.

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How Financial Planning can help you

Whether it’s understanding how to ensure your family could cope financially if you were no longer around, or investing for your children’s future, Financial Planning will help you understand where life can take you. We align your life goals with your personal finances to help bring financial clarity to whatever needs, goals or ambitions you have in life.

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Important information

The value of investments and the income derived from them can go down as well as up and you may not get back your initial investment.

This site does not offer advice and the content and information about potential investments and services are designed for general use, and so cannot be considered personal to your circumstances or your financial position.

References to taxation are based on our current understanding of the legislation but we do not represent that it is accurate or complete and it should not be relied upon as such. Tax laws are subject to change.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN.