It is often said that if you fail to plan then you are planning to fail. Financial Planning involves determining your current situation, establishing future financial goals and then creating a plan that both protects the current situation and achieves the goals for meeting future financial commitments and reaching the situation you want to be in at that time.
As your situation changes—such as when you get married, buy a house, have children, change your job, set up your own business etc.—the plan will need to be updated so the planning process needs to be a regular and ongoing thing to do.
Establishing your current situation is the first step and this involves looking at your current protection, determining how this fits with your needs and researching alternatives that might be better. Is your life cover adequate? How much would you receive from your employer if you had an illness, an accident, were made redundant etc. How well protected would your family be if you developed a serious long-term illness or if you died prematurely in an accident? Morbid thoughts maybe—but a necessary thing to consider for the protection of your family.