| Life is very demanding, especially when you have | | | | Even if you dipped into your savings, it would |
| a family. Not only do you work hard to provide | | | | probably affect your future plans and also put |
| for them, there are physical and emotional | | | | extra pressure on you to replace your savings. |
| demands with family life too. Of course family life | | | | What about the state and my employer you may |
| is tremendously rewarding. But it does have its | | | | ask? |
| pressures. Is there a way of reducing some of | | | | If you are lucky enough to be employed by the |
| this pressure, so you can all live life to the full, | | | | NHS you have a generous sick pay scheme, but |
| now and in the future? | | | | beware as the level of cover you are entitled to |
| If you have a family you probably value it above | | | | depends upon your length of service. With the |
| all else, the last thing you want is to have | | | | maximum of 6 months full pay and 6 months half |
| anything threatening their financial security. But life | | | | pay only kicking in after 6 years service. |
| doesn't always go according to plan. You will have | | | | Although the state will look after you if you can't |
| insured most of your possessions in case of | | | | work because of illness, the benefits are very |
| unexpected events: your home, your car. Have | | | | low. Short term benefits for 2009/10 add up to |
| you done the same for yourself and your family? | | | | only £79.15 per week (Statutory Sick Pay |
| Making plans to cope financially with unexpected | | | | (SSP)) and if you are ill for more than 28 weeks |
| events can be part of your commitment to your | | | | it only goes up to £80.15 (Employment and |
| family. | | | | Support Allowance (ESA)). |
| What if you or your partner became seriously ill? | | | | Could you manage on £79.15 per week? |
| Quite apart from your income, your lifestyle may | | | | In this article we will look at the ins and outs of |
| have to change to help you get better. Or you | | | | family protection. The first step is to look at the |
| may need special nursing equipment or make | | | | different types of cover that are available. |
| alterations to your home. Not only would your | | | | What types of cover are available? |
| current plans be put on hold, your family would | | | | There are several different ways of arranging |
| have to adjust and learn to cope too. | | | | cover to protect your family. Initially you should |
| Although many people have basic life assurance | | | | consider whether you would like a regular income, |
| to provide financial protection to help them cope | | | | or whether a lump sum or one off payment |
| with life, death is not necessarily the threat. What | | | | would suit your family better. Also you should look |
| if the need is financial protection to cope with life? | | | | at what cover you have already got, this will help |
| The good news is that you can protect your | | | | you indentify what else you will need and make |
| family against the financial consequences of | | | | sure you get the best value from your existing |
| unexpected events and it's easy to get cover. | | | | arrangements as well as considering extra cover. |
| You may think "it won't happen to me". But what | | | | The next step is to think about the level of cover |
| if it did? | | | | you will need, how much it might cost, and how |
| Unfortunately, illnesses such as cancer, stroke and | | | | much you can afford to spend. |
| heart attack ore facts of life. What financial | | | | Finally think about the other arrangements you |
| effect would such an illness have on you and your | | | | can make to get the best value out of your plans |
| family? | | | | and make sure that they help your family as |
| If there was only one person earning in your | | | | much as possible. For example, you could consider |
| household, how would you cope if that income | | | | writing your insurance under trust to help cover |
| was reduced or removed? If both you and your | | | | any inheritance tax or just to make sure that you |
| partner are earning, would one salary be enough | | | | leave the benefits in good hands. |
| to cover your current commitments and meet | | | | With such a wide range of products and benefits |
| future demands? If you are the one who looks | | | | on offer, it always makes sense to take financial |
| after your family at home, would there be | | | | advice, take independent financial advice from an |
| enough income to meet the cost of a home help | | | | IFA they are able to help you get the best value |
| and extra childcare costs? Considering the effects | | | | for money and help you choose the most |
| of having less to live off is a sobering thought. | | | | appropriate plan for you. |