Protecting our family’s financial future is always something that has been important to us. This is why Steve and I have been working all the hours under the sun – him outside of the home, me working from home – to ensure our family have the best possible future we can.
Steve has recently left his security job and is currently in the interview process for multiple other jobs – he’s currently taking a career break whilst he searches for something part time to work alongside his studies and this is something we have budgeted for. Him studying for his new career is something that needs to be done to get him his dream job – and us a decent income on decent hours (no more night shifts!) so we’ve made sacrifices to ensure our financial future is as bright and rosy as it should be.
However this isn’t the only way we have protected our financial future and the future for our children. If either Steve or I were to pass away, the loss of income we would suffer would be vast – however we have prepared for this.
Life insurance is a must, especially when you have children. We’ve both recently taken out new policies – mine is slightly cheaper for the same amount of coverage due to certain differences – and should anything happen to either of us, this would go to the other for the children. When my father passed away in January, his policy paid for the funeral and has also been so helpful to my mum in the months afterwards as she went through the grieving process. Our policies will also be for the same things – to make any arrangements for our funerals and then to ensure the quality of life of our children for as long as it possibly can.
Critical illness cover isn’t something we have yet added to our policy but it is something we are definitely considering. Critical illness add-ons usually cover a number of different conditions including different types of cancers, heart attacks and strokes. With my father suffering a heart attack not long before he passed away, Steve’s grandad having a stroke and friends and family passing away from other illnesses covered, we know just how common these illnesses can be and how important this cover is so we will definitely be sorting out some for both of us.
Another form of cover we are yet to add on to our policy but are considering is personal accident cover. Just knowing we are covered should an accident occur would be a great weight off our shoulders. I’ve also noticed that more and more places are doing children’s cover as an add on for no extra cost. Whilst we are yet to add Jack and Olivia to our policies, we do think it is always best to be prepared and whilst you never want to think that something could happen to them, nobody knows the future. That’s why you have to prepare for it.
When it comes to life insurance for my family, I always ask certain questions before purchasing a policy.
Can I hold multiple policies if I so wish? Yes you can. I don’t plan to always have more than one policy but I currently also have a free life insurance policy until Olivia is one which is running alongside my paid for policy. This pays out £10,000 which isn’t a lot, but for a free policy, is great. It is handy to know if you can hold multiple policies if required.
What do all these terms mean? There are so many different things to look out for – is life assurance the same as life insurance? Technically no. Insurance pays out when something happens to you. Assurance pays out when it does. I always make sure to know exactly what I am buying.
How much cover do I need? This is where I always struggle. I try to make sure that any funeral costs are covered and that my family are provided for, for the foreseeable future – whether that means paying rent or a mortgage, bills or just there in case they need it. I’m currently covered for just over £100,000 but this can be scaled up and down if I so wish – the monthly amount I pay would just vary slightly.
I’m taking other steps to provide protection for my family’s financial future too. I’m working hard to get out of debt, I’m putting money aside for a ‘rainy day’ and we also know of an inheritance coming to our family, the majority of which will be put away in a high interest savings or bond account as our fully funded emergency fund.
I’m taking steps to protect the financial future of my family – what are you doing?