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B-Advised Blog

Family Protection Insurance: what is it and why do you need it?


Unfortunately, the reality is that most families would be forced to drastically cut their living costs in order to financially survive the illness or death of a member whose income is critical to the household. That’s where Family Protection insurance comes in.

In the event of a worst-case scenario, the illness or death of a key member of the family is not only a source of emotional grief and distress, but also of financial uncertainty. Family Protection insurance is designed to ease the strains placed on family members, should the unthinkable happen. Today, we’re going to take a look at Family Protection insurance, considering what it is and why you need it.

First things first, what is Family Protection Insurance?

Anyone with a family of their own will be familiar with the unending concern of financial security. What if the main breadwinner was rendered unable to work due to illness or injury? What if, in a worst-case scenario, a key earner were to pass away?

Family Protection insurance provides a much needed solution to these concerns and comes in many different forms.

From Life insurance to Income Protection cover, a knowledgeable financial advisor will be able to work with you to help you find the right protection for your family, based upon your unique needs and circumstances.

Who needs Family Protection Insurance?

Taking out a Family Protection plan is a smart decision for everyone.

What sort of policies you include in your plan will likely differ depending on the type of family set-up you have, i.e. a family with children, a long term partnership without children, or perhaps you are single without children but you provide for elderly parents.

A professional advisor is best positioned to advise on the most suitable policies within your Protection plan, depending on your personal circumstances.

Happy Family with young child

Why you need Family Protection Insurance

A Family Protection plan can provide innumerable benefits. Here are just a few…

Providing peace of mind

It’s pretty easy to take a regular income for granted.

However, the unfortunate reality is that it only takes one serious injury, diagnosis of illness or death to devastate a family’s financial security. Having the right insurance policies in place will give you the peace of mind you need to sleep soundly at night, knowing that your family will be taken care of during times of grief and hardship.

Life can hit you with innumerable hurdles and challenges in many different forms, and that’s why our advisors can recommend different types of policies as part of your Family Protection plan. With a variety of products in place, you’ll be covered for a myriad of the life changing circumstances that the world may throw at you.

Flexibility with products

There is no ‘one size fits all’ when it comes to Protection insurance. As such, every plan will look different and there is plenty of scope for flexibility.

The products you may wish to consider are all flexible enough to provide the right type of cover for any budget, and can adapt as your family grows, shifts and changes. Luckily, our advisors here at B-Advised have the knowledge and experience necessary to help you find a plan that works for your needs and suits your budget.

Here are some of the things you can insure with your plan:

Consequences of a death

  • Funeral costs
  • Shared financial liabilities

Future plans

  • Retirement
  • University fees
  • Holiday home

Loss of income

  • Redundancy
  • Ill health
  • Accident

Contracting a critical illness

  • Ability to work
  • Cost of treatments
  • Adaption of the home

Financial liabilities

  • Mortgage
  • Car loans
  • Children
  • Living costs
  • School fees
  • Credit and store cards
  • Tax bills
  • Quality of life

Take your financial security into your own hands

Many people feel that, in the event of a family disaster such as serious illness, injury or even death, they would be able to survive on a combination of personal savings, employer benefits and state support.

Whilst such strategies of support may seem like sound alternatives to a Protection plan, they may not be a feasible, long term solution to serious changes in your households income.

When looking at your household income and expenses, it’s important to consider whether your family’s lifestyle could really be sustained over a potentially lengthy period of time on savings or benefits alone.

The reality is that for most families, this would simply not be possible. Few savings accounts could be hefty enough to support an entire family over a prolonged period, statutory support will only provide a bare minimum and, ultimately, employer benefits tend to run their course quite quickly, if they are provided at all.

A comprehensive Family Protection plan will empower you and allow you to take matters into your own hands. Having a number of policies in place that will support yourself and your family should the worst come to pass will help to provide a great deal of confidence.

Looking to create a safety net for your family? Our fantastic advisors can help you create a Family Protection plan that suits your needs. Contact us today.