Financial security for your family

What this episode is about

Financial security does not mean insuring everything. It means knowing what would happen if something went wrong, and having a plan for what matters most.

This episode suggests a simple way to look at your family’s situation: what it depends on, where it is exposed and what to tackle first.

Key points

• See what your family depends on. Incomes, loans, fixed monthly costs and the children’s needs.
• Work out the income gap. If one income stopped, how much would be missing each month, and for how many years?
• Life cover at the right level. The sum insured should follow your needs: loans to be repaid, years of support for the family, and goals such as the children’s education.
• The home and the mortgage. If you have a mortgage, check that your cover matches the balance and the remaining term.
• Health and accidents. A serious illness or an accident can bring costs and stop your income at the same time.
• Paperwork in order. Make sure your partner also knows where the policies are, who the beneficiaries are and how to make a claim.

Questions to think about

• If your income disappeared tomorrow, how long could your family manage?
• Does your life cover pay off your loans and cover the years until the children are independent?
• Does your partner know where the policies are and whom to contact?
• When did you last update your beneficiaries?

These notes are general information, not personal insurance, tax or investment advice. For your own situation, talk to an insurance advisor.

Where to go next