Securing your financial future

Money Advice Service

Your future is unknown and it’s important to consider the risks and be prepared if things don’t go to plan.

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This means thinking about what’s important to you, for example, your family, your lifestyle and your home (rent or mortgage), and making sure they’re protected.

More than one in six working families would receive little or no help from the state and see their income drop by a third, if the main earner became unable to work.
Source: ABI

To work out whether you need protection and what type of protection you might need, it’s important to look at the whole picture.

What savings do you have? Do you have a mortgage or any debts you need to pay? Do you already have any insurance products, and if so what do they cover?

No two people are the same and the type of protection you need will depend on your personal circumstances and stage in life.

Your:

  • age
  • health
  • marital status,and
  • whether or not you smoke.

Are just a few examples of the elements you need to consider.

This guide can help you decide how and what you need to protect.

Savings as protection

As well as saving for large purchases or events, it’s a good idea to set aside some money in case you find yourself out of a job, or unable to work.

The general rule is to have enough money saved up to be able to cover your essential outgoings for at least three months.

This way, you have access to an emergency fund which should keep you afloat in the short-term if anything goes wrong.

But it’s not always easy to save three month’s money, and savings can take time to build up and be used up very quickly.

So while having some emergency money is a good idea, combining your savings with a form of protection insurance might be an option for you to consider.

Paying off your debts

Many people have debts, for instance secured loans such as a mortgage, or unsecured debts such as a credit card bill or bank loan.

If something happens to you and your income drops, you’ll still have to pay off your debts, so it’s well worth keeping them under control.

It usually makes sense to prioritise paying off any unsecured debts.

Households which lose their main salary often struggle to meet payments.

Some people in this situation turn to credit to cover expenses such as rent or their mortgage and find themselves getting deeper into debt.

Read more about How to prioritise your debt.

Protection insurance

The type of insurance policy you might need depends on your situation.

  • A life insurance policy will pay your dependents a lump sum or regular payments if you die unexpectedly. If you have a partner or children, life insurance can provide you with the reassurance that they will be able to cope financially without you.
  • Income protection insurance is designed to support you financially if you can’t work due to illness or injury and your income drops. This type of policy is particularly relevant for anyone who is self-employed and wouldn’t get sick pay.
  • You might consider getting short-term income protection insurance. This type of policy will pay out a monthly sum, for a set period of time, if you lose your source of income due to illness, injury or redundancy.
  • You might consider critical illness cover, which will cover you in case you get a specific type of life changing condition.
  • Payment protection insurance will support you if illness or redundancy means you can’t meet regular payments of your debts.

Will the state take care of you if you have an accident? Do insurance companies pay out when something goes wrong?

Find out the answer to these questions and more in Protection insurance – tips and myths.

This article is provided by the Money Advice Service.

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We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

No Liability – please note that you use the information on Rest Less Money at your own risk and we can’t accept liability for how you choose to use the information given on our site. We will often provide links to content or products and services available on other third-party websites. These are provided purely for your convenience and we cannot be held responsible for any content, or any of the products and services offered on any website that we link to.

 

Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

Some important information about Rest Less Money

We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

No Liability – please note that you use the information on Rest Less Money at your own risk and we can’t accept liability for how you choose to use the information given on our site. We will often provide links to content or products and services available on other third-party websites. These are provided purely for your convenience and we cannot be held responsible for any content, or any of the products and services offered on any website that we link to.

 

Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

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