The small decision that had “life-changing” effects for Formula 1 presenter Jennie Gow after she suffered a stroke

When life is on track and you’re meeting your milestones, it’s easy to feel secure and in control. Though, the reality is that unexpected challenges could arise when you least expect them.

In August 2022, Jennie Gow, a Formula 1 presenter for the BBC, was living an active and healthy life.

Just in case the worst should happen, Gow was advised to take out income protection. This decision proved to be invaluable when, just a few months later, she had a stroke that left her unable to work.

Thanks to her proactive choice to shield herself from the unexpected, Gow’s income protection provided essential financial support, helping to cover expenses during her recovery.

It even included rehab support services and funded specialist speech and language therapy sessions to support her return to work.

Gow’s story shows just how important protection is in helping you navigate unforeseen health issues, and this was a reality for many across the UK last year.

Indeed, the Association of British Insurers reveals that £810 million was paid out by income protection policies in 2023.

While it can be challenging to consider these “what if” scenarios, taking a proactive approach to financial protection – particularly with my help – could make all the difference for you and your loved ones. Continue reading to find out how.

If you are unable to work due to an accident or illness, you could put your long-term plans at risk

It’s entirely understandable to believe that a serious illness or accident would never affect you, especially when life is particularly busy.

In reality, it can occur at any time. For example, Macmillan Cancer Support reveals that someone in the UK is diagnosed with cancer roughly every 90 seconds.

Just as Gow’s life changed suddenly without warning, your own health could be considerably affected by an unexpected event, potentially affecting your ability to work.

If this does happen and you lose your income, covering your usual bills and living costs could be far more challenging. You might need to dip into savings that were earmarked for other purposes, which can derail your progress towards your long-term plans.

Moreover, if your family depends on your income, they could suffer if you experience a sudden accident or illness.

It’s not just in the short term that this could be problematic; you may decide to pause pension contributions to meet costs. This could mean you end up with a shortfall in the future, putting your ideal retirement lifestyle at risk.

According to figures from PensionsAge, if a 25-year-old earning an average salary contributes the minimum auto-enrolment amount and then pauses contributions for a year, this could result in a £4,600 shortfall by the time they reach State Pension Age.

The figures also show that a two-year pause could result in a shortfall of £9,100, while a three-year pause could amount to a £13,600 loss in savings.

Ultimately, without essential protection in place, you might find yourself having to make incredibly difficult choices, whether that’s cutting costs, using up savings, or delaying your retirement plans.

Financial protection could help you manage costs while you focus on your recovery

Thankfully, there are several types of financial protection available that could support you and your loved ones if you become unable to work.

For instance, income protection is designed to pay you a regular source of income if you’re unable to work due to an accident or illness. You’ll usually receive up to two-thirds of your usual earned income.

This could help you cover any essential costs at a time when you should be focusing solely on your recovery rather than worrying about bills.

In Jennie Gow’s case, her income protection allowed her family to manage day-to-day expenses while she focused on getting better.

Another valuable type of protection is critical illness cover. This typically provides you with a tax-free lump sum if you’re diagnosed with a serious condition listed on the policy, which could include illnesses such as:

• Cancer
• Heart attack
• Stroke

You could use this lump sum to pay off your mortgage or other significant debts, pay for private treatment, or even renovate your home to be more accessible if you are affected by a short- or long-term disability.

Money aside, simply having this protection in place could give you the peace of mind that you’ll have the means to handle significant costs should you receive a sudden diagnosis.

I could help you decide which form of protection best suits your needs

At Prosper with Clarity, I understand that everyone’s financial needs and goals are different. There is no “one size fits all” solution to the levels of protection you need, which is why it’s so beneficial to seek professional support.

Depending on your situation, I might even recommend a package of both critical illness cover and income protection.

For instance, if you have both and are diagnosed with a serious illness, the lump sum from your critical illness cover could help you cover larger costs over the long term and pay off any important debts.

Meanwhile, the payments from your income protection could help you cover day-to-day bills.

After her ordeal, Jennie Gow explained to LV=: “We didn’t know what was about to happen, but when we were in hospital, just knowing we had protection was a life changer for us because I couldn’t speak, let alone work, and we didn’t know if I’d ever go back.”

While you obviously hope that you never have to rely on financial protection, having it in place can provide immense peace of mind and the means to potentially handle whatever life throws your way.

Get in touch

I can help you take proactive steps towards shielding your wealth from the unexpected and safeguarding your emotional wellbeing from a sudden accident or illness.

Email Marnel.Stafford@fosterdenovo.com or call 07305 970959 or 0207 469 2800 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate taxation advice.

Note that 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.

A pension is a long term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension income could also be affected by interest rates at the time benefits are taken.

Pension savings are at risk of being eroded by inflation.