The loss of income through sickness or accident can have a devastating effect on your lifestyle! While income stops, the bills just keep coming - mortgage, rates, taxes, education costs and other daily expenses continue as they always have.
There are a number of ways that we can protect against such a significant and devastating loss of income - income or mortgage protection, trauma or multi trauma covers are just a few products that can provide benefits to alleviate the income loss.
But there are other things we have to protect as well as our income - home, contents and cars spring to mind, and yes they are the things we frequently think about protecting before we get around to the big one - income! So how do we stretch the budget to cover all these things?
Well the most important thing we can do is seek good advice - and then prioritize the things that really are important - with the money that we have available. Frequently this will involve limiting some of the benefits that are available - such as shortening the time over which an income benefit will be paid, or lengthening the the waiting period before the benefit payment starts.
And whilst a good income protection plan is usually the preference, when we just can't seem to fit it all in to our budget - there is one product that frequently stands out - Trauma Cover!
Trauma cover pays a lump sum should we suffer a specified trauma or critical illness condition. Most products will have between 40 and 50 specific conditions, and many of them will be serious enough to stop us working for a period. So, whilst the cover may not be as far reaching as income protection cover which will generally be our first choice - trauma cover will provide that lump sum that can be the equivalent of say one or two years income. This will frequently be a cheaper option - but something that will provide a little protection at a lower cost and will far outweigh that option of "putting it all in the too hard basket" and doing nothing!
As always changes can be made as time goes on and our circumstances change.
Want to spend some valuable time now and review your options to protect the things that really are important - without breaking the bank?
Call us at Thompson McNeill on 281 8605
or email email@example.com