Why it is important to make sure your financial foundations are stable in this new tax year.

Now that we’re into a new financial year, there is no better time to conduct a forensic x-ray on your finances to assess exactly what you need to change or improve.

In this current economic climate, many of us focus on material possessions, such as the cost of insuring cars, eating out and taking holidays. However, in trying to save money on these aspects of everyday life, it is all too easy to forget about financial security for our own selves and our families.

Ask yourself if you’re financially prepared for the potential events that could turn your life upside down, such as a fatal heart attack or a serious accident. What impact would this have on your family or your business?

The importance of a will

Sadly, research shows that as many as one in three people die in the UK each day without making a will and about 70% of the current population do not have an existing, up to date will. If you die without having made a will, you are described as dying ‘intestate’, which means that your assets are now in the hands of the law, and unfortunately what the law says might differ from what your family might expect or want. Take action now to make sure you don’t put your loved ones in this awkward position.

If you do have a will, that’s a good start, but remember that it is not enough just to make a will and put savings plans in place - it is also important to let your family know where to look to find out about your financial affairs. Think about it now – would your loved ones know exactly where to find your important bank details if you were no longer around? If you don’t tell your family where to look, they could easily miss out on your hard earned savings – or discover them hidden away years later.

Independent Financial Adviser

That is why it’s so important to enlist the help of an Independent Financial Adviser who can keep you financial details, plans, certificates and policies safe and secure, and help your loved ones to access them if the unexpected does happen.

Life cover should form another essential part of a healthy financial foundation. If you are among the 40% of people in UK who currently have no form of life cover plan at all, now is the ideal time to shop around and put a policy in place. Worryingly, people are currently far more likely to insure their mobile phones, pets, houses or cars, rather than take out life cover, but it makes no sense to neglect our lives - the most important asset of all.

Critical illness cover

The same applies to critical illness cover. Nobody can guarantee the state of their heath, and it is an unfortunate fact that if you were to suddenly fall ill, you may become uninsurable. It is not worth neglecting such an important financial aid, especially when considering that 42% of Britons will get cancer in their lifetime, according to Macmillan Cancer Support.

Consider the provisions your employer may or may not make for you in the event of an accident or illness. Do they provide critical illness cover, or life cover? If you’re unsure, check your contract and ask your employer, so that you can have peace of mind that your family will be financially protected, whatever life throws at you.