Protecting your financial future isn’t just about taking out insurance to protect you against life’s risks. It’s also about deciding how and where to put savings aside to protect the people and things that you love, and to ensure you're prepared financially if things don’t go to plan. Our future-planning guide in Savings Strategies will help you: Plan For The Future.
Today, more of us are able to enjoy longer retirements than we planned, thanks to improved standards of living and better healthcare. That’s why it’s important to consider how to protect your financial future as soon as you can, and start putting savings aside for your retirement.
The longer you're able to save, the more comfortable your future will be, and the more effectively you can support family and loved ones.
Choosing the right ways to protect your future financial health is a matter of personal choice. It will depend on a number of factors, including:
We consider specific ways to protect your family and loved ones in Section 4 – Protecting Your Loved Ones, but it’s important to consider the financial risks you might face and be prepared for them if they occur.
Here are two common ways that insurance can help:
Before taking out an insurance policy to protect your financial future, it’s worth reviewing what insurance you have in place already. For example, you may find that your workplace benefits include some form of income protection insurance, or life insurance plans, or access to attractive rates negotiated with providers. Your employer may also have an obligation to continue to pay you if you are unable to work through sickness.
Remember, too, that the government will usually provide you with some degree of financial support if something goes wrong, although this may be means or asset tested, and may not include all the support you need. It might include:
