Chestnut Financial Services Limited

10 Newark Road, Bassingham, LN5 9HA

Call Us: 01522 788887

Email Us: ian@chestnutfs.co.uk

Chestnut Financial Services Limited

10 Newark Road, Bassingham, LN5 9HA

Call Us: 01522 788887

Email Us: ian@chestnutfs.co.uk

Chestnut

Financial Services Limited

10 Newark Road,

Bassingham,

LN5 9HA

Call Us: 01522 788887

Email Us: ian@chestnutfs.co.uk

Protect

- Step 2 of Financial Planning

Protect - Insure Against Disaster

We all like to dream about maybe one day being rich. Very few of us will inherit a fortune or win the lottery, but with careful planning and diligent discipline, we can all be financially free.

There’s a bible story about the wise man building his house upon rock. When the storms came, his house stood firm. The foolish man, by contrast, built his house on sand and when the storms came, his house was washed away.

All too often our dreams are derailed by some event that we can do nothing about - the storms arrive.

Think about it...

  • Your ability to save into pensions, ISAs and savings accounts is entirely dependent on you earning an income and saving some of that money.
  • But what if that income is taken away?
  • What if you or the main breadwinner in the house is killed or disabled by accident or injury?

Your health and ability to earn an income is the firm foundation on which your future wealth is built.

We use insurance to reinforce our foundations against the storms.

Insurance is a funny thing. We pay it, hoping we never need it. Sometimes we gripe about the price of it, but when we need to claim, we are very glad we have it.

Insurance is designed to get us back into something like the position we were in before the insured event happened, especially when our emergency funds can't cushion us against the effects of disaster.

Key Types of Protection

Life Insurance doesn’t have the power to resuscitate us if we’re dead, but it can go some way towards replacing the money needed by loved ones when we’re six feet under - such as paying off the mortgage on the family home. So, you should ideally make sure any debts can be paid off if you were to die.

Critical Illness Insurance pays out if we’re diagnosed with something nasty and life-changing - accidents and illnesses. Often these things won’t kill us, but they will likely mean an extended period off work, assuming we can ever return. Sometimes our house may need alteration, such as for wheelchair access. Critical Illness is more likely to pay out than life insurance, which makes it more expensive, but it should be considered an essential.

Income Protection Insurance is designed to replace most of your income if you can no longer earn it. So even if your illness isn’t critical, if you can’t work, an income protection policy will pay until you are able to return work or until the end of the policy, whichever comes first. Depending on your sick benefits from work, you should consider income protection as well as life cover and critical illness insurance.

Every situation is different:

  • Someone with large debts and a young family needs more life insurance than a singleton with no debts or responsibility, who probably doesn’t need any.
  • But, that singleton and family breadwinner should ask how he or she would cope if they were unable to work for an extended period of time and consider income protection.
  • If you have a major debt, like a mortgage, you should ideally have that paid off in the event of a critical illness. At the very least, you should think about insuring yourself for three, four or five years’ worth of mortgage payments, to give yourself a breathing space if the unthinkable happens.

Protection is the Bedrock of Security

Insurance is a firm foundation on which to build a future worth getting excited about. It can seem like money for nothing, but can be worth its weight in gold when the worst happens.

What’s in your bucket at a given time when you need money? How long might you need it for? Could that money run out? These are major questions for financial planners working with their clients to create good financial plans!

Financial planning is fun – using prudent assumptions can see what’s going on in your bucket. You might be amazed at the opportunities that are there. Together we can tailor your financial planning so that you can be confident about where you are heading financially.

What if you discovered you would never run out of money to meet your expenditure plans – why take any financial risk at all? It’s a catastrophe to invest in anything you don’t really need, which do things you didn’t expect. That’s financial stress, its costly and deeply troubling if financial advisers haven’t taken the time and trouble to understand their client’s true needs.

Quite simply we work on you behalf. Insurance policies (which we have listed separately to give some background information on when they are useful and of what service we can be for you) are simply tools in the bag. Nothing to get excited about. Just something to be used - IF and when necessary – to get the job done.

In a Nutshell

Whatever your circumstances, no matter how much or little money you have got, understanding your money and whats going to happen to your bucket, enables you to take control and live life more fully.

Now imagine that you visit your doctor who tells you that you only have 5-10 years to live. You won’t ever feel sick, but you will have no notice of the moment of your death. What will you do in the time you have remaining? Will you change your life and how will you do it? (This question does not assume unlimited funds)

Finally imagine that your doctor shocks you with the news that you only have 24 hours to live. Notice what feelings arise as you confront your very real mortality. Ask yourself: What did you miss? Who did you you not get to be? What did you not get to do?

So hopefully now you can see why a financial planner is really good value - sorting the wheat from the chaff to see that you can lead the life you want to lead, safe from catastrophes.

Contact Us - Emma Francis
Contact Us - Emma Francis

Please Get In Touch

You can telephone our office on 01522 788887, we always look forward to speaking with our clients.

Alternatively, you can email us. Our address is ian@chestnutfs.co.uk

You can telephone our office on 01522 788887, we always look forward to speaking with our clients.

Alternatively, you can email us. Our address is ian@chestnutfs.co.uk

Or please complete this contact form and we will get back to you as soon as possible!

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Chestnut Financial Services Limited is authorised and regulated by the Financial Conduct Authority, and is entered on the Register under reference 840940.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Chestnut Financial Services Limited; registered in England and Wales no 9918363, registered office 10 Newark Road, Bassingham, LN5 9HA. VAT Registration Number is 304 9810 11