Updated: Feb 20
As part of our annual client campaign cycle, we recently were focusing on wealth protection.
Given today’s uncertain economic climate, it’s never been more important to make sure that you have all aspects of your financial planning in order. Wealth protection ensures financially security, should unforeseen circumstances arise.
Elements of wealth protection we focused on as part of the campaign included; insurance audits, updating death beneficiaries, writing wills, inheritance tax checks, and sending out power of attorney and Grant of Probate documents. In total, we carried out 414 initiatives as part of the campaign which highlights the amount of people who do not have a definitive wealth protection plan in place.
How can you protect your wealth?
1. Life insurance provides a financial safety net for your loved ones should you pass away. Typically, your family would receive a lump sum payment that could be used to pay off any outstanding debts, such as a mortgage.
2. Income Protection insurance ensures that you still receive a regular income should you be unable to work due to illness or disability. You’ll continue to be paid until you retire.
3. Critical Illness Cover also provides an income if you are diagnosed with an illness or disability, however rather than receiving a regular income, the payment is made in the form of a lump sum.
4. A legally-bound will comes into effect upon your death and ensures that your estate is distributed according to your wishes.
5. Appoint a Power of Attorney which is a legal document that allows a nominated person to make your decisions for you should you be unable or unwilling to do so yourself. There two types of POA. An Ordinary Power of Attorney, used where you may be unwilling to make financial decisions yourself and a Lasting Power of Attorney, where decisions about health and financials are made for you if you lose mental capacity.
6. A grant of probate provides legal authority to an individual to distribute the estate as outlined in someone’s will.
Wealth protection is important as it allows you to:
Make sure your mortgage is paid to protect your family home should you pass away or become terminally ill.
Ensure that upon death, your estate is distributed as per your wishes.
Have the financial security to access to private medical treatment instead of having to wait for NHS care.
Appoint the right person(s) whom you trust to make important life decisions on your behalf.
Maintain financial security should your employment circumstances change.
Have peace of mind that if you require a sudden cash injection due to an accident, death or illness you are protected.
The Reeves Wealth Protection Service
Insurance may not be at the top of your to do list, however Reeves will aim to give you peace of mind that your loved ones are protected.
If you already have insurance in place, we will ensure your insurance provisions are suitable for you. If we find that there are better options available, we’ll make recommendations for alternative plans.
Your Adviser will further make sure you are suitably prepared, ensuring your will, power of attorney and grant of probate are in place so you can take comfort in knowing your family is protected should you no longer be able to actively support them financially. They will also discuss potential inheritance tax implications.
If you would like further information on safeguarding your assets, please don’t hesitate to get in touch. Our Financial Advisers would be happy to help.
Wills and Powers of Attorney are not regulated by the Financial Conduct Authority.
These articles are for information only and should not be construed as advice or a recommendation. The investment strategies mentioned are examples only and may not be suitable for your particular: circumstances, tax position or objectives. Please seek independent financial advice before taking any action.
No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.