Last updated 05:14, Friday, 31 October 2008

It is so easy to put your head in the sand and try and not think about life’s downs such as critical illness or death but it is important that you do actually plan to ensure that your finances are secure if the worst should happen.

The ultimate: Finances would be difficult enough if you were unable to work through illness, but if the worst should happen, how would your partner and family cope?

You may have no form of life insurance at the moment, or perhaps you took out some form of mortgage cover when you bought your home.

It is important that you consider your protection needs right now.

Personal circumstances are always changing; you may have bought a bigger house, had children or just generally have more financial commitments for example.

Here are some good examples which highlight why it is important to protect both yourself and your family no matter what stage you are in life.

Young people have the highest level of unsecured debt in the UK, with those aged between 18 and 34 holding an average of £3,200, and students who have just left university owe on average approximately £11,000.

If this is you, consider what would happen if you became critically ill and had to stop work – possibly permanently.

How would you pay the bills and keep the same standard of living?

If the worst should happen and you or your partner died how would the other survive?

Many people just protect their mortgage; this may not be sufficient. Parents, for example, can typically spend just over £940 a year just sending one child to a secondary school.

If you have children, what measures have you put in place to keep their future secure and ensure they have the daily essentials if the worse happened to you?

People with older children need to consider the increased expenditure due to a larger house, increased debts or financing children in further education. The need to maintain adequate protection is clear.

Furthermore, people in retirement will want to relax in the knowledge that they’ve protected their financial security.

With 28 per cent of pensioners over 65 having debts of over £3,000, there is still a need to protect their income and outstanding debts.

The right protection plan could also be used to help plan for an inheritance tax bill to ensure your loved ones are not left with any of your financial commitments.

There is a wide range of protection plans to look after you and your family, and it’s important to choose the right cover to reduce the impact of life’s downs.

Working in partnership with Norwich Union, the Cumberland offers a no-obligation, expert financial planning appointment to talk about your individual needs and recommend a protection plan that will suit you.

To discuss your protection needs, call into your local branch or call 0845 6018396 to make an appointment today. Any financial advice will relate only to the products and services of the society and Norwich Union.

Phillip Ward is a marketing manager at the Cumberland Building Society. Visit the website at www.cumberland.co.uk

This article should not be relied upon when making investment decisions. Always obtain financial advice.