The coronavirus pandemic has had a significant impact on the UK since the initial outbreak in 2020. One of the most notable ways it has changed society is with its negative impact on our mental health.
According to figures from the Office for National Statistics, more than one-fifth of people in the UK experienced depression in early 2021. This is more than double its pre-pandemic level, reported in 2019.
One simple way to support your mental health is to take out financial protection, so read on to find out how it can help you.
Having protection can give you a greater sense of confidence
As you might imagine, there is a link between mental health and financial wellbeing. When you’re struggling financially then it’s understandable that your mental health may suffer.
Conversely, when you are having mental health difficulties then you may not be able to manage your money as effectively. According to Aviva, people with mental health issues were three times more likely to run out of money in a week if they lost their main source of income.
Given that millions of Brits have seen their income fall due to the pandemic, it’s understandable that people have been struggling.
One of the biggest ways that financial protection can boost your mental health is by giving you greater confidence that you’ll be able to pay your bills, despite any loss of income.
If you’re unable to work due to accident or illness, income protection will pay you a monthly sum after an “excess period”. This is the time that it takes before the policy kicks in and, as a general rule, the longer this period is, the cheaper your premiums may be.
This form of protection can be useful for maintaining your standard of living if you’re unable to work for a period of time. However, it’s important to bear in mind that many plans don’t cover every illness and you may not be covered for pre-existing conditions, so it’s important to check the terms of your protection thoroughly.
According to data published in FT Adviser, more than a quarter of income protection claims were made for mental health reasons in 2020, more than double the number in the previous year.
If you suffer from issues such as depression, stress, or anxiety, then having protection in place, and knowing it will pay out, can give you a greater sense of confidence.
Having protection can be a weight off your mind if the worst was ever to happen
One of the lessons that the pandemic has taught us is that the unexpected can happen at any time. While nobody likes to think of the possibility of death, it can be useful to make plans for when it happens.
If you have a partner or dependents, you may have considered how your unexpected passing might affect them financially. For example, if you’re the primary earner in your household, your loved ones may experience a lower quality of living than they’re used to.
Furthermore, if you and your partner hold a joint mortgage then your death could have serious consequences.
According to a study by Legal & General, 36% of joint-mortgage holders surveyed stated that if they passed away, their partners probably wouldn’t be able to keep up with their repayments alone. If this happened, your partner could lose their home.
When a loved one dies, the last thing you need while grieving are financial worries being piled on top. Having financial protection, such as life insurance, can prevent you from having to worry about your family’s financial wellbeing if you passed away unexpectedly.
Working with an adviser can help you to find the right policy for you
If you’ve ever searched for financial protection, you may have noticed that there are many different types to choose from and this can seem overwhelming. This is where seeking professional advice can help you.
A financial adviser can scour the market on your behalf to find the right form of protection to suit your needs. This can save you a considerable amount of time and effort.
Knowing that you’re protected against the unexpected can help to improve your confidence and boost your mental health, allowing you to rest easy.
Get in touch
If you want to know more about how financial protection can boost your mental health, get in touch. Please email info@investmentsense.co.uk or call 0115 933 8433.
Please note:
Protection plans typically have no cash in value at any time and cover will cease at the end of your term. If you stop paying your premiums, then cover will lapse. The definitions of disability vary considerably between providers. Failing to disclose any requested or relevant information may adversely affect any future claims.
