Advice for new mums and dads
Becoming a parent is an exciting time that brings with it lots of new responsibilities. Mums and dads can often find their time entirely taken up with looking after the new addition to their family. However, it makes sense to think about protecting your family and saving for their future too.
PROTECTING WHAT’S IMPORTANT
Parents want to do what’s best for their children, but many overlook putting insurance plans in place that would pay out if the worst was to happen to either of them. It may be an uncomfortable topic to discuss, but no-one would want to leave their family struggling financially. The monthly cost of a protection plan is a lot less than many people imagine and worth it for the peace of mind.
SAVING FOR THEIR FUTURE
Having a sum of money saved for them gives a child a good start in life. A Junior ISA is a tax-free savings scheme that enables parents, family members and friends to put money aside either into a cash and/or a stocks and shares account for a child’s future. The allowance for the 2019-20 tax year is £4,368. On their 18th birthday, the young adult can access their savings.
Income protection (with no investment link) has no cash in value at any time and will cease at the end of the term. If you stop paying premiums your cover may end. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.