Playing professional rugby and earning a good wage means you can treat your family. When you are budgeting, you might set aside wealth, so you and your loved ones are able to enjoy the finer things in life.
However, it is also important to think about the long-term financial security you can provide for your family. Protection policies, such as life insurance, income protection, and critical illness cover, are a crucial part of this.
You may already have protection in place and need to update it, or perhaps you are yet to take this important step.
Either way, reviewing your protection is one of the best gifts you can give to your loved ones.
Read on to learn three reasons why.
1. Income protection helps you maintain financial stability if you fall ill or sustain an injury
As a professional rugby player, you may have a greater risk of injury than the average person. If an injury or serious illness means you are unable to play for a long period of time, you could struggle to meet your financial obligations. You might not be able to set aside wealth for the future either.
Fortunately, if you have income protection, you will receive a regular monthly payment until you are able to continue playing or potentially find an alternative source of income. While the amount you receive may not be as much as your earnings from rugby, it should still cover your expenses and may allow you to build your savings.
It is important to regularly review your income protection policy throughout your career because your earnings and lifestyle may change.
For example, if you sign for a new team and your wages increase significantly, your spending may rise in certain areas, meaning it costs more to maintain your lifestyle.
Yet, if you have not updated your income protection to account for this, the payment you receive might not match your new standard of living, and your family may have to make certain sacrifices.
Additionally, as the cost of living rises over time, your expenses could grow even if you do not make many changes to your lifestyle. Some income protection policies automatically increase the level of cover in line with inflation, but this is not always the case.
As such, you may need to review your income protection cover to check it is still suitable for your situation.
2. Critical illness cover supports your family if you face long-term health problems
If you are injured or fall ill, income protection supports you until you can return to playing or find a new source of income. However, you may require a more permanent solution if you are diagnosed with a long-term illness.
In this situation, your playing career could end prematurely, and your illness might mean you struggle to work at all. Depending on the condition, you may also face additional medical costs or need to make changes to your home.
Critical illness cover can help you manage these expenses as you receive a lump sum payment when diagnosed with a qualifying illness.
Your family might use these funds to clear the mortgage, cover general living expenses, and pay additional costs associated with your illness. You may also contribute a portion of the settlement to your retirement savings.
Ultimately, this means you and your family can remain financially stable, even if you are unable to earn an income for the remainder of your life.
3. A life insurance policy protects your family financially if the worst happens
You may not want to consider what happens when you pass away, and it is a difficult subject to discuss with your family. In the middle of your playing career, it may not even be something that concerns you currently.
However, if you fail to plan for this eventuality, you could create financial challenges for your loved ones.
If you were to pass away unexpectedly, the household income may fall significantly, meaning your family find it harder to pay the bills. A sudden change to their financial situation might disrupt their retirement plans too.
Like critical illness cover, the lump sum payout from a life insurance policy could help your loved ones remain financially secure during this difficult time.
However, with both types of protection, it is important that you update your policy to reflect your current circumstances. This is particularly true when you move into a new home or have children, so you can ensure that the settlement is adequate to cover important expenses, such as a mortgage.
Get in touch
Reviewing your protection is one of the best gifts you can give to your loved ones because it provides financial security, no matter what life throws at you.
If you need help setting up or updating your protection, please do get in touch with DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.