Cover must keep up with changing needs

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ROGER EDWARDS PROPOSITION DIRECTOR BRIGHT GREY AND SCOTTISH PROVIDENT

As people move from one life stage to another their financial needs change. Buying a house or starting a family will alter people’s financial priorities and responsibilities.

But when they review the family finances they shouldn’t just be looking at how they can make their existing incomes stretch to cover credit card debts and pay their immediate bills. They should also be looking at their future financial needs.

This means protecting incomes and making sure the family could maintain their standard of living should the main earner die or suffer a serious illness.

Many people won’t realise they are underinsured. They may have never heard of income protection and probably think family income benefit is something the state will hand out.

They might not be aware that simply adding a little bit of extra critical illness cover to their existing protection plan could make all the difference to their financial safety net.

This is where your professional advice is important.

Talking to an adviser will help people see where their priorities lie and understand the different protection products that are available and most suited to their needs.

Whatever life stage your clients are at now, it’s more than likely their circumstances will have changed since you last met.

The Comprehensive Spending Review is sure to have made people anxious and now might be the right time to review their protection needs.