Four headings and a funeral: Moments in life to prepare for the future
We look at some of the key moments in life where you might want to make sure your wealth is suitably protected.
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But if misfortune strikes, you and your family would be hugely grateful for having the right protection in place. After all, you probably take the time to insure your most treasured possessions – isn’t it worth doing the same to protect your family’s future?
A few simple decisions at key moments in life will go a long way to putting a safety net in place. And while protection policies can of course be reviewed at any time, here are just four examples of specific times when we think it’s particularly important.
1) Buying a house
You may be able to pay the mortgage and household bills when you first move in, but what if your situation were to suddenly change? What if you fell ill and could no longer work? What if you passed away? Could your family meet the payments?
Even if you leave your estate to your family in your will, it can take time for the funds to become available. And while it’s all being arranged, the mortgage and associated monthly household bills still need to be paid. If your family members find they can’t cover these costs, they might end up in financial difficulty.
The right protection could help by repaying the outstanding mortgage quickly, leaving one less thing for your family to worry about at a difficult time.
2) Changing jobs
If your health insurance, critical illness cover and life insurance are provided by your workplace, they usually end with your employment. They don’t go with you to the next job – they just go.
Will your new job have the same level of cover? Will you be covered for the same circumstances? It can be easy to overlook these questions while settling in at your new desk and setting up your email account.
It could therefore be better to get cover in place that effectively follows you around wherever you go rather than being tied to any one particular job. And if you’re self-employed, you’d need to have it all set up independently anyway.
3) Having children
Once you have children, your money is no longer your own. It’s theirs too. So what happens to them if something happens to you?
Could you still afford to pay their school fees if your income stopped coming through? Would you still be able to employ a nanny to help look after them? Will they still be able to experience everything you want them to in life?
Making sure your children get the best start, whatever life throws at you, is almost certainly among your top priorities. A good combination of life insurance, critical illness cover and income protection could help ensure your children remain financially secure should things not go to plan.
4) Leaving your wealth behind
Estate planning – ensuring your wealth still serves your family well after you’re gone – can be crucial. We call it ‘estate planning’, but you could think of it as nothing less than protecting your loved one’s futures.
Making a will and keeping it up to date are the most obvious and powerful things you can do to make sure your fortune has its intended consequences after your death. But there’s much more to think about.
For example, putting money and assets into trusts can help your wealth pass to your loved ones in the quickest, most tax-efficient way. You may also want to think about setting up ISAs and other types of investment with an eye on the future. And there are a range of protection policies that can support your plans for your money beyond your lifetime.
How we could help
For over three hundred years, Coutts has been the trusted adviser to society’s most extraordinary people. This has given us unparalleled insight into our clients’ priorities, passions and financial needs.
We bring all this experience and expertise to bear when working with you to create a package of protection measures tailored to your requirements.
Our comprehensive range of services and holistic view could help ensure you’re covered in every aspect of your life. We piece it all together for your peace of mind.