Who’s left if you pass away? Why Life Protection matters.

So who is it?

Your husband?

Your wife?

Your children?

Who will pay the mortgage next month?

Who will pay the nursery fees?

How can you live the same lifestyle now that you can’t work?

Who will pay for the medical bills?

These uncomfortable questions form the bedrock of any sound financial plan. 

If you die, the bank might offer their condolences to your family before enquiring how the money they lent you and your family will be paid back. The same goes for private medical bills/nursery fees or alterations to your home & life – these all cost money. The bills still need paying if someone passes away or becomes seriously ill.

We are here as a guide and to ask these critical questions. Perhaps you have postponed some of these questions. Maybe you think it’s crazy they’re even crossing your mind, or you didn’t even know that they existed.

Once you’ve asked yourself these questions, you begin to form an idea of what’s needed. So let’s take a brief look at some options on the market:

Life insurance will provide a lump sum to your family in the event of your death. This will ensure they don’t suffer financially due to losing your income. During a difficult time of grief, a lump sum can provide the comfort and liberation your family mainly needs. We can’t help with the emotional side of losing a loved one but can help with the financial aspect. 

In 2020, Aviva’s youngest life insurance claimant was just 18 years old.

Life insurance with a critical illness component attached to it means that it will pay out on death or if you suffer a critical illness. It can help you cover the cost of treatment, pay for your mortgage, or even adjust your home following a critical condition.

In 2020, Critical Illness paid out for 36 different types of cancer.

Check out our Introduction to Life Insurance for more.

Income protection – Income protection insurance is a type of cover that offers a replacement income if you’re unable to work, usually due to illness or injury. This will ensure that you continue with the same lifestyle and don’t have to make compromises. Income Protection also ensures that your mortgage/rent can be paid for in the future.

In 2020, LV had a claimant on Income Protection for 35 years so far.

Did you know that you can set up a Family Income Protection following a divorce? This will cover the lost maintenance payments in the event of your ex-spouse’s death and is usually much cheaper to purchase than level term cover. Either the payee or the ex-spouse can be responsible for covering the monthly premiums. You must have the ex-spouses’ permission to take out cover on them.

Death in Service/ Relevant Life Cover – Death in service is an occupational benefit provided by some employers. If you die while on the payroll, a nominated beneficiary will receive a lump sum – often two to four times your salary, but this can vary between employers.

As independent financial planners, we have access to the entire insurance market. We’ll spend time getting to know you, your family, and your future plans.


Please get in touch if you want to start planning for your financial security and peace of mind:

[email protected]

01273 076587

About the author
Picture of Oliver McDonald
Oliver McDonald
Oliver is the managing director and independent financial adviser at Engage Wealth Management.
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