In the face of the current climate it is important to consider the ‘what if’ scenario. The classic question you need to ask yourself is, “if I lost my source of income how would I be able to keep up with my financial commitments?”

 
When making any kind of judgement on how you would cope in a ‘what if’ scenario it is important to consider a number of factors. Firstly, take a look at your current outgoings and compare them to any existing savings. Secondly, look at your current employment benefits to assess what type of cover you are entitled to if, for example, if you are off sick, have an accident or are made redundant.

 

Finally, look into any other cover you may have that will see you through the loss of your income. By going through this process you will start to develop a better understanding of the kind of cover you already have and expose any shortfalls if the ‘what if’ scenario occurs.

When making an assessment of your financial protection needs it is worth seeking advice as certain products will only cover you for certain eventualities. For example, some products will only cover you against redundancy but not long-term sickness, while others are intended to cover specific financial liabilities such as a mortgage.