The value of investments and any income from them can fall and you may get back less than you invested.

Financial Protection For Your Family

Share

Everybody appreciates the importance of accumulating wealth for a comfortable financial future. But people pay less attention when it comes to protecting that wealth – and the income that helps to generate it. 

Indeed, some reports suggest that as many as 80% of people with a mortgage have no income protection at all*. 

Of course, illnesses and deaths are not things that we like to think about, but failing to protect against such eventualities can have disastrous consequences for our loved ones, from struggling to pay the mortgage to crippling inheritance tax bills. 

“Insurance to protect your finances is a vital but it can be complex putting the right combination of policies together” says Liz Alley, director of financial planning at Brewin Dolphin. “It’s wise to get professional advice to make sure the level and type of cover dovetails correctly into your overarching financial protection strategy.” 

Here are just some of the policies that need to be considered. 

Life assurance

Generally speaking, anybody with dependants or an outstanding mortgage should look at taking out a life policy. At the very least, this should cover debts and ensure the family can keep their home, but preferably it should provide an additional sum to help cushion the shock to your family finances at such a difficult time. 

Income protection

These policies typically pay out between 50%-70% of your salary, tax free, if you are unable to work due to illness or injury. 

They are an essential form of cover for those with dependants but the terms and conditions vary; some pay out until retirement or death, or until you return to work. Almost all will only pay out once a pre-agreed period has passed, ranging from three months to a year. 

That is why it is important to make sure you understand the small print, and how the policy may complement any savings you have or work benefits you may be entitled to. 

One very common cause of contention is that some policies pay out if you cannot return to your own occupation. Others pay out only if you are incapable of doing any job. That is why it is so important to make sure the right policy is put in place.  

Critical illness 

These policies pay out a lump sum, as opposed to an income, on diagnosis of a range of critical conditions, such as heart attacks, strokes, and certain types of cancer – but each policy will have its own definitive list. 

Typically, they are used to pay off the mortgage and any other debts, or they could be used to pay off school fees that are no longer affordable. 

There are other policies available that cover other eventualities. For a detailed consultation, contact Brewin Dolphin. 

* https://www.ftadviser.com/protection/2018/05/25/eight-out-of-10-mortgage-holders-have-no-income-protection/

 

 


 No investment is suitable in all cases and if you have any doubts as to an investment's suitability then you should contact us.

We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time.

In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed via our website at www.brewin.co.uk

The information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The opinions expressed in this document are not necessarily the views held throughout Brewin Dolphin Ltd.

Your next steps

Manage Your Wealth

Start a conversation

Find out how we can help guide your wealth journey, by requesting a callback from a member of our team.

FIND OUT MORE
CLOSE

REQUEST A CALLBACK

I am ready to start a conversation

Find out how we can help guide your wealth journey.

We will match you to the Brewin Dolphin office that is closest to your Post Code for your initial conversation.

Please select if you would like to choose a Brewin Dolphin office other than the one closest to your post code.

Understanding your level of wealth will inform our conversation about which services would be most suitable for your circumstances.

Are you a Brewin Dolphin client?

We respect your privacy and take protecting it very seriously. We will only use your data in order to arrange a meeting to discuss your needs (as explained above) and as set out in our Privacy Notice. In keeping with our existing practice, we will never sell your personal data to any third parties. You can change your preferences for how we use your data at any time by contacting your usual contact at Brewin Dolphin by phone, post or email. Please allow 14 days from receipt of your information for any changes to be reflected across our systems. 
We do not sell, rent or loan any identifiable information collected on this site. Any information that you give us will be treated with the utmost care and security. It will not be used in ways to which you have not consented.

Get Started in Minutes

Start investing online

Start investing from £2,000 with the Brewin Portfolio Service. Sign up online. Simple, accessible and cost efficient. Capital at risk.

FIND OUT MORE

Receive Our Insights

Stay updated

Receive email updates with news and views from Brewin Dolphin and information on our products and services.

FIND OUT MORE
CLOSE

Newsletter Signup

Stay updated

Receive email updates with news and views from Brewin Dolphin and information on our products and services.

Capturing your post code will allow us to tailor some of our communication to include regional views and updates that may be of interest to you.

We respect your privacy and take protecting it very seriously. We will only use your data in accordance with your preferences stated above. In keeping with our existing practice, we will never sell your personal data to any third parties.

If, in the future, you would like to update any of your marketing communication preferences, you will receive an email that will provide a link to our Preference Centre.