Serious illness is something none of us wants to experience, but something that we all should think about.
Prognosis of illness, the stage of the illness and whether recovery is likely. If recovery is likely, it is important to understand a timespan. However, if the condition is long term and the client will be permanently affected, the planning will be different and will probably involve accessing pension funds early if possible
Some employers will provide long-term sickness pay and ultimately take the employee back after the illness if appropriate, while other employers may only provide statutory sick pay.
Consideration will have to be taken into the likelihood of returning to work, or finding a new job. Sometimes the individual will be well covered with income protection, or they might have a condition which their critical illness policy pays out
Supplement income from existing investments, or possibly drawing pension early
Personal income protection may also provide an income until the expected retirement date, or the return to work date. The protection must be in place in advance of ill health occurring.
Financial Planning Areas
- Advice on protection products - income, health, life
- Income replacement options