In your 20s
At this age you are unlikely to have significant financial commitments. However, income protection must be a priority - mortgage or no mortgage. Income protection helps you maintain your lifestyle by covering monthly outgoings. This means that if sickness or disability rendered you unable to work, a proportion of your salary would be paid after a defined period of absence.

If you are a homeowner, life assurance should be in place to cover the loan and, if you are married or have a dependant partner, you should review this area separately. Critical illness is also a top priority at this stage and should be included within your protection portfolio.

Critical illness cover is a lump sum benefit, paid when the policyholder suffers from one of a list of serious illnesses, such as a heart attack, cancer or stroke.'

In your 30s and 40s
When children enter the equation, adequate protection becomes even more important and, as your salary and responsibilities increase, critical illness insurance, life assurance and income protection benefits may need to be upgraded.

In an ideal world you should include all these protection benefits within your portfolio, if your situation warrants it. Remember, if you end up requiring an income for the next 20 years or survive a critical illness, how would you cope without sufficient protection? And in the event of your premature death, do you have adequate life cover to protect your loved ones?

Private medical insurance may also be a priority if you want to avoid possibly losing income while waiting for NHS treatment.

'Critical illness insurance, life assurance and income protection benefits may need to be upgraded if you don't already have sufficient provision.'

In your 50s
Once the children have left home and are earning, it will again be necessary to review your protection policies. With fewer years to retirement, the mortgage repaid and no children to support, you may wish to consider reducing your protection. However, you need to consider that the older you become the more likely you are to suffer from ill health. And if you do become ill, you don't want use up all your savings when an alternative solution could be available.

So think carefully before cutting back on protection. You may drop back on life cover once your children have grown up, but you also need to consider a surviving spouse as well as the effects of inflation on a lump sum and the level of income it may generate.

'Think about making provision against the need for long-term care.'

You might also wish to start thinking about making provision for long-term care. If the total value of your assets is between £11,500 and £18,500, you'll be liable for part of your care costs. If the total value of your assets is more than £18,500, you will have to pay the full amount yourself.

If you are concerned that you have not given enough attention to your protection portfolio recently and would like to review it, please e-mail or contact us.