Act now to protect your loved ones and your business from the Coronavirus fallout

14 April 2020

The UK is entering its fourth week of an unprecedented lockdown, and while there do seem to be glimmers of hope on the horizon, the daily death toll numbers make for sobering viewing. While staying safe and healthy should be the overriding concern for everyone, it is inevitable that people may start to think about the financial impact on those around us, should the worst befall us. Gary Smith, chartered financial planner at Tilney, looks at why life assurance and business protection have never been more important.

“The prime concern at this time must be the safety and wellbeing of those around us. Unfortunately, we have been shown that we are not invincible and some of us will be affected. On top of the obvious grief we feel when losing a loved one, the financial burden for you and your family in the event of death, critical illness or long–term sickness can be significant. Would your family be able to cope without your or your partner’s salary?

“Having financial protection, such as life assurance and critical illness cover, in place will help ease your mind during an already incredibly stressful time. For example, a life assurance policy will ensure your family is provided for on the event of your death. Similarly, critical illness cover would help to ease the financial burden in the event of a severe illness or injury. While you always hope that you would not need to use these policies, they are there to insure against things like the family home being lost and ensure your loved ones are provided for, when you cannot provide for them yourself.

“Protecting your income and the financial well-being of our families is obviously of the utmost importance, however it is equally important to protect our businesses. They represent our livelihood; the ability to provide for our families now and in the future. It is imperative that business owners have business protection in place at this time. This will help ensure the real value of your company passes to your intended beneficiaries, and can ensure the continuity of your business in the event that you or your business partner/s are no longer around.

“Now is the time to start asking yourself, your business partner and your loved ones some important questions. For example, does your partner/family really want to run the business after you’re gone? Do you want to run the business with your business partner’s spouse? Have you taken out business loans? How will these be repaid if you lose a key worker? Is the company really worth as much, if you’re no longer around to run it?

“It can be unsettling to be having such frank conversations with the current economic backdrop, but having a plan in place, with the correct business protection will be invaluable.

“As always, with regards to both financial and business protection, please speak to your financial planner about the various options available to you for your specific circumstances.”

About Tilney

Tilney is a leading investment and financial planning group that builds on a heritage of more than 180 years.  Our clients are private investors, charities and professional intermediaries who trust us with over £23 billion of their assets. We offer a range of services including financial planning, investment management and advice and, through our Bestinvest service, a leading online platform for those who prefer to manage their own investments.

We have won numerous awards. Tilney has been awarded Best Conventional Advisory Service at the 2018 City of London Wealth Management Awards, Best Advisory Service in the 2015 City of London Wealth Management Awards; Investment Award – Cautious category in the Private Asset Management Awards; and Stockbroker of the Year, Execution-only Stockbroker of the Year and Self-select ISA Provider of the Year 2015, as voted by readers of the Financial Times and Investors Chronicle. Bestinvest was voted Best SIPP Provider and Best Fund Platform at the 2017 City of London Wealth Management Awards, Best Direct SIPP Provider at the Awards 2017, Best Stocks & Shares ISA Provider at the 2017 Shares Awards, as well as Best Self Select ISA Provider, Best Online/Execution-only Stockbroker and Best Investment Platform 2017 at the FT and Investors Chronicle Investment and Wealth Management Awards, as voted by readers of the FT and Investors Chronicle.

Headquartered in Mayfair, London, the Tilney Group employs over 1,000 staff across our network of 30 offices, enabling us to support clients with a local service throughout the UK.