Planning

Protect yourself financially, whatever happens

You currently have JavaScript disabled in your browser. Please enable it to make full use of My plan.

Protect the things that matter with insurance and organised savings

There's no question that we all want to protect the things that are important to us – our families, our homes, our quality of life. And how well they're protected largely depends on how much money we have available in an emergency.

For example, if you or your partner were to die or suffer a serious illness, you might have three sources of money:

Insurance is one of the easiest and most common ways to protect your assets
  • accessible savings from your instant access accounts
  • long term savings you could divert from investments or fixed term accounts
  • insurance payouts from policies you'd taken out in case of the event

Knowing you have these financial plans in place means you can get on with your life with peace of mind.

Accessible savings

Though you often get a better interest rate by locking away part of your savings, it's wise to keep something accessible. A good buffer is 3-6 months' wages.

You'd generally keep this in an instant access savings account, so you could transfer it to your current account whenever necessary.

Long term savings

Many of us put a great deal of our excess money into a pension fund. This is a sensible, tax-efficient way to save for retirement, but it does mean your money is unavailable.

It might be worth talking to a financial adviser about building up another small lump sum for emergencies, in an account that will make it available sooner – for example, a fixed term deposit.

Life insurance and other protection

Insurance is one of the most comprehensive and common ways to protect your assets. It's also very flexible. You could choose to provide a lump sum in the event of your death, or provide an income if you became ill.

To see how your family would manage in these situations, and get an idea of what insurance or savings you might need, use our Income protection guide

  • Fixed term life insurance pays a sum to your family if you die within a fixed term. For example, you might choose to insure yourself until your children are grown up.
  • Whole of life assurance pays out a sum on your death, no matter when that is. Because it is certain to pay out at some point, you'll generally get a much lower sum assured for the same premium than you would with fixed term insurance.
  • Serious or critical illness cover insures you against a range of illnesses and injuries. It's very important to check what is covered by the particular policy – for example, it may include some cancers, but not others.
  • Income protection insurance pays you part of your income if you can't work. It usually pays out for almost any injury or illness, but not if you lose your job.

With all types of insurance, it's very important to know exactly what is and isn't covered. Of course, the more cover, the higher your premiums will generally be.

Next steps

Finding the right insurance policies and savings plans depends on your finances and your situation. You should consider carefully, and it may be worth speaking to an expert.

Check if you qualify for advice

If you have £50,000 or more in savings and investments, you may be eligible for HSBC Premier Financial Advice. See the full eligibility criteria.

If you don't qualify for HSBC Premier Financial Advice or if you'd rather not pay for advice, see other ways we can help.

*Our opening hours are Monday to Friday 8am to 9pm and 9:30am to 7pm on Saturday. Calls may be monitored or recorded.

You may also be interested in...

Helping with your child's first home

article

Helping with your child's first home

Gifts, loans and joint mortgages offer different ways to help

Saving for a deposit

article

Saving for a deposit

To get on to the property ladder, you're likely to need a deposit

Need financial advice?

We can help give you expert advice for your individual circumstances.

See how we can help

Need to talk to us?

To discuss options or book an appointment:

0800 032 4710

Our opening hours are Monday to Friday 9am to 6pm (excluding public holidays). Calls may be monitored or recorded.

Everyone's circumstances are different and what applies to one person may not be right for someone else. The suggestions above are based on a general assumption of each circumstance and they are not intended to provide advice or recommendation.