Navigating life's milestones: A guide to proactive protection

Life is a journey filled with pivotal moments and milestones that shape our futures. Whether it is the joy of marriage, the excitement of buying a home, or the arrival of a new member to the family, these events bring about both change and responsibility.

Safeguarding what is precious to us becomes paramount, especially during times of change and transition. And when this happens, it is important to remember that your financial needs also evolve over different life stages and events.

Here are some examples of when you may want to evaluate your wealth protection options.

Change in relationship status – marriage, civil partnership, divorce

Entering into a lifelong commitment or navigating the complexities of divorce calls for careful financial consideration. Reviewing your insurance coverage to ensure it aligns with your new marital status is crucial. From life insurance to income protection, updating policies can bring peace of mind during times of transition.

Buying a property

The purchase of a property signifies stability and investment in the future. However, it also exposes us to various risks, particularly concerning mortgage obligations. Reviewing and updating your protection coverage can safeguard your home and your family's financial security. Life insurance and critical illness cover can provide a lump sum giving your loved ones a safety to pay off some, or all, of the mortgage in the event of a critical illness or worse. Also consider income protection to cover expenses such as the monthly mortgage bill, in case you are off work with illness or injury for an extended period.

Welcoming a new family member

The birth or adoption of a child is a momentous occasion, accompanied by a newfound sense of responsibility. Reviewing your life insurance to ensure adequate coverage for your growing family is essential. Additionally, considering critical illness cover can provide financial protection in the event of unforeseen health challenges. Again, consider income protection to support the increase in outgoings (that come with welcoming new family member) should you need to take extended leave for illness or injury.

Children becoming independent

As children transition into independence, your financial priorities may shift. Updating your key estate planning documents, such as wills and trusts, can ensure your assets are distributed according to your wishes.

Changes in your health or lifestyle

Changes in health or lifestyle can impact insurance premiums and your coverage. Quitting smoking, for example, may qualify you for lower rates on life and health insurance policies. Taking proactive steps to maintain a healthy lifestyle not only improves your wellbeing but also reduces insurance costs in the long run.

Career transitioning

Changes in employment status, whether through career advancement or retirement, necessitate a reassessment of insurance needs. It is important to review whether your work-based coverage is sufficient and fill any protection gaps with a personal plan. Transitioning from employer-provided benefits to personal coverage requires thoughtful planning to ensure you have sufficient protection for yourself and your loved ones.

Financial milestones

From paying off a mortgage to receiving an inheritance, significant financial milestones warrant a review of your protection coverage. Adjusting your policies to reflect changes in debt, assets, and liabilities ensures that you have comprehensive protection for your financial legacy.

As your wealth accumulates, estate planning becomes increasingly important. Strategically gifting assets and minimising tax liabilities can help to preserve your wealth for future generations. We recommend regularly reviewing your estate planning strategy to ensure your legacy is protected and passed on according to your wishes.