Financial Resilience 

However you wish to define resilience - an ability to bounce back, to adapt to change or cope when set backs occur - we should look to build this quality in all aspects of our lives, and our finances need to be given one of the top priority spots. Building resilience in our finances is about having a preventative mindset and physical products in place to help us weather storms that may cost us money or reduce our income. Sometimes our fast pace lives do not always leave time to reflect on what we have and what we need. We do not want to be moving towards life events that we have not prepared ourselves to withstand. By pausing and looking at our income and outgoings, and financial plans, we can look at whether we have the things we need to be financially resilient to maintain, at a minimum, the lifestyle we have grown accustomed to. 

Becoming Resilient 

Ask yourself the ‘what if…?’. These are the questions that are hard to ask and hard to answer. What if I lost my income? What if ill health meant that I could not work? Clients give varied answers to these questions from selling their home to using all their savings. As much as these may be options, they are highly disruptive to people’s financial standing and significantly affect future plans. Events that make us vulnerable require more than an optimistic mindset, they require protection products that take the financial load off you. Critical illness cover, income protection, family income benefit, and in the event of a person passing away, life cover can help pay mortgage debt, essential bills or even university costs. Each product offers a different aspect of support and prepares you to be resilient to change. 

Staying Resilient 

Reviewing your protection policies is essential. When you first take out a policy, it reflects your needs and plans at that time. Relationship beginnings and separations, having children, relatives growing older and becoming financial dependents all affect the level of financial resilience that is required. We encourage our clients to review their protection needs every time they return to us to remortgage, as it may be a point when they are increasing their borrowing, and it offers a perfect pit stop to review their current protection needs and future plans. But at any point that your circumstances change, consider how it impacts your financial resilience and give us a call to talk things through. It is important to HomeLife that our clients go about life confident and stress-free. 
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