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  • Writer's pictureProactive Medical & Life

Riding the 5% Wave: Navigating Financial Well-being Amidst Rising Interest Rates

With the Bank of England having increased interest rates to 5%, many of us are understandably concerned about our personal finances, including income, expenses and, notably, mortgage repayments. Especially for those poised to renew their mortgages in the near future, this turn of events may seem daunting. The question now is, where does that leave us concerning other financial commitments?

As a Protection Advisor operating within the financial services industry, our role at Proactive Medical & Life is crucial. Our primary focus is to assist our clients in maintaining their health and well-being during such stressful periods. So, how can we help alleviate some of these financial worries and concerns that may be burdening you?

You might wonder, how can a financial advisor's guidance help me navigate through these tricky times? The answer is simple. We can support you in numerous ways. Most people tend to scrutinise their bank accounts every month, conscious of the rising costs and pressures of daily life. All of these factors considerably impact one's health and overall well-being.

If you currently hold insurance plans and are pondering whether to review or even cancel them, now is the perfect time to consult with a broker who can help you through these challenging times. Brokers possess comprehensive knowledge of various products and the intricacies related to those products, which could be incredibly beneficial to you.

For instance, we recently engaged in a discussion with a client concerning the cost of living crisis. They felt that their monthly expenses had surged so dramatically that they could no longer afford their mortgage. They were keen to find ways to reduce their monthly outgoings. One such area where they had always sought coverage was health insurance. As their broker, we explored the myriad benefits of their health insurance that they could retain, particularly during the renewal phase of their review.

By retaining crucial aspects of their coverage, such as cancer cover, inpatient treatment and potentially some outpatient services, their plan could be significantly scaled back from what it previously encompassed. This might also involve shifting hospitals. For instance, clients who previously opted for London hospitals could switch to a guided, expert select or consultant select plan, thus reducing their premiums substantially. However, it's important to remember that increasing their excess could be a double-edged sword as they would have to pay more when making a claim, a situation we are aiming to avoid. Yet, this strategy could help lower the premium, especially for those who don't often make claims.

We have also touched upon mental health issues, including stress, anxiety and pressure. Many of our insurance plans now include therapy and well-being services, designed to help mitigate these pressures. If you find yourself grappling with financial stress and need someone to talk to, the cognitive behavioural therapy services offered through these plans can be of tremendous help, often without affecting your premium even if you make a claim.

Moreover, we can assist you in reviewing other long-held insurance plans, such as life insurance, income protection, or critical illness cover, which you may have believed were fixed and unalterable. Our wide network of contacts also enables us to advise clients on matters relating to other insurance services or even utility bills.

The key takeaway is to maintain control over your finances. Try to avoid spending beyond your means, difficult as it may be during these taxing times. We understand that this period is incredibly stressful for many individuals, families, businesses and even our own colleagues. Yet, rest assured that we are here to offer support and guidance through this financial instability.

Ultimately, it's about having the right product that caters to your unique needs. Speak to a broker—they can steer you in the right direction.

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