Change is good but some things remain constant

Financial advice has changed dramatically in recent years. I have heard it said – admittedly by another financial planner – that my chosen field of work has moved from being an industry to a profession. I’m personally of the opinion that there is still work to do, by the profession as a whole, before the wider public accept this distinction.

However, it is clear that gone are the bad old days of insurance salesmen knocking on your door at all hours to flog you a product that you didn’t really need and would be unlikely to ever be able to claim on.

I myself had a relative (sadly now deceased) who purchased, while in her sixties, a life assurance product that would pay out only if she died while taking part in a number of defined extreme sports.

A common scare tactic (or sales technique if you will) of the time was to ask you how your loved ones and dependents would cope financially if you were to pass away and they would no longer benefit from your income. A picture was often painted of a household losing its major financial contributor and simultaneously having to make funeral arrangements and deal with the emotional aftermath of your untimely death. Thankfully, the rules – and more importantly the culture – have changed within our profession and continue to do so.

While I would never put any client in such a situation as the one above, and I accept that their own death or incapacity is something that few people wish to consider, I do believe that the scenario is one that is worth considering.

Do you know how your family would be able to continue to meet the obligations of your household if you (or your partner) were to die or lose their income? Could you pay the mortgage or bills? Protection products today come in a wide variety of different shapes and sizes.

You can protect against death, illness or loss of income over a fixed period or an ongoing one. Depending on the product type selected benefits can be paid in a lump sum or as regular income. You can protect against a specific outgoing i.e. your mortgage payments, school fees, funeral costs, an inheritance tax bill, care home fees or you can choose to receive a nominal sum to provide an additional buffer and simply to help out should the worst happen.

Clearly, this is now a complicated area of financial planning and Shipman Financial Planning would be pleased to offer you the chance to meet with one of our qualified advisers to discuss and review your own situation. This meeting would be at our cost and I can personally promise you not to flog you anything that you don’t need!

For further information please contact Shipman Financial Planning Ltd, 1 Barnfield Crescent, Exeter, EX1 1QY, telephone 01392 278491 or email info@shipmanfp.co.uk.

This article is for general information only and reflects the views of the author only. You should seek professional advice in respect of your own circumstances. Authorised and regulated by the Financial Conduct Authority. Shipman Financial Planning is a highly respected professional adviser offering personal service and innovative advice.