This does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Dental and Medical Financial Services Limited is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority.
Historically, self-employed businesses and small and medium-sized enterprises have often found themselves inadequately protected when they need it most. As their primary focus is their business, protection might not be a priority for them – but it’s time to rethink. The COVID-19 pandemic taught us all that there’s no telling what life will throw at you. The best way to be prepared for anything is to be protected.
In the event that you can no longer work due to illness or injury, it’s imperative that you have something in place to not only protect yourself but your business, as well. If you are self-employed or own a small business, you are your business. Some people have even more at stake – like those who have raised equity on their homes or have taken a second charge on their property to invest in their business. But if you have anyone that depends on you, income protection should absolutely be a priority.
Prepared and protected
Everyone can benefit from income protection, but if your spouse, your children, or any other relative depends on your income to cover the mortgage, bills, or any other living expenses, securing income protection should be an easy choice. There are so many kinds of plans out there, even if you don’t have much to dedicate to protection, there will be a policy that works for you.
When should you review your coverage?
You should regularly review your coverage to confirm it is still sufficient. But there are a few circumstances that require you to revisit your protection policy:
Your income has changed
Because income protection policies are directly tied to your income, whenever it changes, it’s time to review your coverage. You could be under or over insured if you don’t update your income when it happens. If you keep your policy updated with the correct income, you’ll ensure you receive the necessary amount of financial support should you ever need to make a claim.
Delaying retirement until after 60
If your income protection policy was taken out a while ago, you should check to see if yours is set to expire once you turn 60. Nowadays, it’s normal to work past that age, and the reality is that, often, doctors don’t have an option but to work until they’re able to draw from their NHS pension). If your plan states that you must work until 67 or 68, make sure you have a policy that will cover you until you plan to stop working.
Significant life events
It makes sense that any time something significant happens in your life that will affect your finances you should revisit your income protection plan. If you become a homeowner or start a family or even if you get married or divorced, if your finances will be impacted, be sure to upgrade your coverage to compensate.
New coverage options available
New insurance products hit the market all the time, so it stands to reason that something might come along that is a better fit for your needs. Many newer policies offer additional benefits and more specific language around your occupation that could make your life a whole lot easier and not just when you need to make a claim. So, it’s worth looking into what’s new to see if you could have more comprehensive coverage or additional benefits.
Need help choosing the right protection?
If you need help prioritising your coverage or want to review your current plan, Dental & Medical Financial Services can help. They’re specialists in developing and protecting your wealth and their expertise will let you find the right mix of protection for yourself and your family.