Whether you’ve just had your first baby, or you already have a mini football team, you’ll know that parenthood is life-changing. Your time is no longer your own, life is always busy, and you hardly see your own income. With 100% focus on raising your little ones, it’s easy to become a second-class citizen in your own life. And while it’s all fun and games for a while, taking your health for granted, what will the kids do if the unexpected happens?
You most likely have mortgage protection to clear your mortgage and secure the family home, but have you considered how your dependents would cope financially if you got seriously ill, or God forbid, died?
What is a Family Protection Plan?
A Family Protection Plan does what it says on the tin, it protects your family from the financial uncertainty and difficulty that occurs with unexpected health situations. None of us like to think about these things but having a family protection plan can really put your mind at ease and help you get on with living and enjoying life to the fullest. To an extent, when you take out a family protection plan, you are purchasing peace of mind.
There are lots of options on the market to ensure you and your family would have the money needed if an unfortunate event should happen to you. What’s important is that you secure one that is flexible and offers value for money. Having the option to increase or decrease your cover amount, extend or reduce the term of cover and add or remove benefits as your life changes and your family matures are things to consider.
Benefits of a Family Protection Plan
A good plan should allow you to:
- Pay off loans or debts keeping your family finances healthy
- Pay a monthly income to your family to maintain their current lifestyle
- Pay a monthly income to your family if a stay-at-home parent should pass. This would go towards childcare and other expenses
- Pay a lump sum amount in the event that you suffer a serious illness, providing you with financial breathing space and allowing your family to maintain their current lifestyle
- Pay a lump sum on death to cover the funeral expenses and other related costs
Illness cover
Illness cover is there to protect you and your family in the event that you are diagnosed with a specified illness. The last thing you want to worry about if you are sick is loss of income and whether you can afford to pay the bills. An illness plan will pay out a tax free lump sum to give you the financial stability to focus on what really matters, getting well.
The best-case scenario would see your Family Protection Plan tiding you over while you recover from something very temporary or short-term. Your plan should offer cover for things like a hospital stay, an accident that leaves you out of work for more than a couple of weeks, or if you need to undergo surgeries.
Your children may be covered for most of the serious illnesses listed on your policy, and sometimes for other youth-related illnesses, such as meningitis. What you can claim will depend on the policy you take out but the cover for a child is usually the lower of 50% of the sum assured or €25,000.
The Future
None of us can predict the future, but we can plan for it, and we can protect ourselves from worst-case scenarios. The reality is that things happen to present serious challenges every day. Don’t be caught out. If you’d like to discuss ways to protect your family, please get in touch. We’d be delighted to help you find the best Family Protection Plan for you and your loved ones.