Protection Planning Guide

What if the income supporting the plan is interrupted?

Start with what the household would need to keep doing: paying for a home, raising children and preserving choices. Existing savings, personal cover and employer benefits are part of that picture.

Start with the financial consequence

Protection planning is not about starting with a policy name. Start with the financial problem that would exist if a person died or became seriously ill: lost income, debt, education commitments, care costs or time away from work.

• Who depends on the income?
• How long would support be needed?
• What commitments continue even if the income stops?

Life cover and critical illness do different jobs

Life cover normally addresses the financial consequences of death. Critical illness cover normally addresses the financial shock that can follow diagnosis of a specified serious illness while the person is still alive. Medical insurance is different again: it usually focuses on treatment costs or access to care.

• Life cover: support those left behind.
• Critical illness: create recovery and income flexibility.
• Medical insurance: help fund or access treatment.

Review existing resources first

Employer benefits, savings, spouse income, existing policies and liquid assets may already cover part of the need. The useful question is the remaining gap.

• Check workplace benefits.
• Check existing policies and ownership.
• Decide which assets are genuinely available for the family to use.

Put the commitments and resources together

Medical insurance and financial protection solve different problems

Reflect before estimating a gap