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Protecting your financial future

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

Retirement planning

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.

How insurance can help to protect your financial future

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:

  • What’s important to you (the people and things that you love)
  • Your age
  • Your job
  • Your relationship status
  • Your general health

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:

  1. Protecting your life - Life insurance can pay a lump sum to your dependants if you pass away. It can provide reassurance that your loved ones will be looked after, and better able to cope financially, once you're no longer there to provide for them.
  2. Protecting your income and payments - If your income falls as a result of illness or injury Creditor Insurance, (which protects the debt insured), critical illness and income protection insurance can step in to replace some, or all, of the shortfall. HSBC offers creditor insurance on your loans – creditor life educes or pays the balance should an insured pay away; and creditor disability pays the monthly loan payment while you’re ill.

Are you covered already?

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:

  • Support or caring allowance
  • Healthcare costs or support
  • Unemployment allowance or benefits
  • Disability payment or support

Protecting what matters

Familiarise yourself with the terms you may come across as you explore insurance options.
There are many things to consider while shopping for insurance. Take the time to evaluate before buying a policy.
Protecting your overall wellbeing is an important part of protecting yourself.