Life insurance. Are you protecting your family’s financial future?

Author: Nicola Peak

Chartered Financial Planner & Chartered Wealth Manager

View profile

This may be something that you have yet to consider, but life insurance plays an important role in planning for your family’s financial future, particularly if you have younger children or any other dependents living with you.

With the cost of living crisis continuing to impact families across the UK, it’s perhaps more important now than ever to ensure you have a financial protection plan in place for your loved ones should the worst happen. i.e., you become critically ill, unable to work, or die prematurely.

It is estimated that around 15 million people in the UK have life insurance, only 3 million people have Income Protection and 5.5 million people have protected themselves in the event of a critical illness. (Source: Halifax Survey 2021)

With 56 million adults in the UK according to the 2021 census, this leaves a staggering number of people over the age of 18 without adequate, or indeed any, life insurance policy in place.

Why do I need life protection?

On average a UK household spends £2.90 a month on the UK lottery and has a 1 in 45 million chance of winning, but the same household has a 1 in 3 chance of suffering from an injury or illness which will keep them off work long term, a 1 in 4 chance of being diagnosed with a critical illness and a 1 in 6 chance of dying before age 65.

However, only 17% of people surveyed would consider taking out any form of life cover. When the same people were asked if they would take out pet insurance or mobile phone insurance, this percentage increased to over 30%, as they believed these would have a bigger impact on their financial stability. (Source: Halifax Survey 2021).

Ask yourself this question; if you were unable to work due to an illness or accident, how long could you continue to pay your mortgage and your bills?  According to a recent survey, by UK Finance 2020, for most UK households, this would be two months.

Income Protection pays out a monthly tax free sum to replace part of your income if you are unable to work due to an illness or injury.

It is designed to provide a financial safety net for your family to pay for things like mortgages, childcare, school fees and ongoing household and utility costs.

Similarly, Life Insurance and Critical Illness policies are designed to pay out a lump-sum to your beneficiaries should anything happen to you, and you are unable to support the financial needs of your family.

The cost to cover your family could be cheaper than you think and will provide them with the financial protection they need in an already difficult and emotional time.

Next time you renew your car, house or phone insurance, consider what your family would do if suddenly you or your partner were no longer able to work.  How long could you financially survive?

Protecting your family matters – please speak to Nicola Peak on 01223 233331 or email for advice on protecting your family’s financial future.

Opinions constitute our judgement as of this date and are subject to change without warning. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

Read more blog posts

Get in touch today

We’ve built long lasting relationships on the strength of a good conversation, if you are looking for wealth management and independent financial planning advice or have any questions about the services we offer, please do get in touch.

T. 01223 233331


Book a call with us Speak to a financial planner