Far from being a luxury, life and protection insurance should be considered essential, especially if you have a family or people that rely on your income. We can help you put the right cover in place, for peace of mind that those you care about most will be looked after.
Far from being a luxury, life and protection insurance should be considered essential, especially if you have a family or people that rely on your income. We can help you with this fundamental cornerstone of financial planning, providing peace of mind that those you care about most will be looked after should you die, or suffer an injury or serious illness.
Protection policies are designed to shield you and your family from the financial consequences of death, or a serious accident or illness. If you suffered a serious illness or injury you might lose your income, which could lead to losing your home. Equally, if you died, would your loved ones be able to maintain their current lifestyle without your income?
Already have cover in place? It is still worthwhile reviewing your levels. Personal circumstances change regularly, so it is important to make sure your cover remains appropriate. Book a review and we will take a look.
If you or your family faced a difficult situation, a protection policy could help to:
Life insurance (sometimes known as life assurance) pays out either a single lump sum or a regular income to your beneficiaries when you die. It can help provide financial security for the people who depend on you if the worst happens. Although money can never replace a loved one, it can help those left behind to weather the financial storm, for example by paying off the mortgage or providing an income to cover regular household expenditure.
The most appropriate type for you will depend on your circumstances.
The simplest type of life insurance. You choose how long you are covered for, for example 20 years (the term), and the policy pays out if you die within that term. You can also take cover as a couple, with the policy paying out on the first death only during the term.
Essentially the same as term insurance, but instead of paying a lump sum when you die, it pays out a regular income. This may be more suitable where the main purpose is to provide ongoing financial support to dependants.
Pays out a lump sum when you die, whenever that is, as long as you keep paying the premiums.
Critical illness insurance pays out a tax-free lump sum on the diagnosis of a range of serious conditions, such as a heart attack, stroke, cancer, major organ transplants and many others. The conditions covered vary depending on the insurer. It often comes as an optional addition to a life insurance policy, but can also be bought on its own. Policies usually only pay out once, so they do not necessarily replace your regular income, but you can put the money towards medical treatment, your mortgage or anything else you choose.
Many people buy critical illness cover when they take on a major commitment like a mortgage, or start a family. But since most of us would want our financial commitments lightened if we suffered a serious illness or injury, the cover is relevant for almost anyone, at any time.
Look beyond the price. It can be tempting to opt for the cheapest policy, but while many products look the same, there can be important differences that are difficult to spot. This is particularly true of critical illness and income protection cover, where what is available varies significantly between providers. We will help you make the right selection.
Income protection insurance pays out a regular, tax-free replacement income if you become unable to work because of illness or injury. It can help you keep up with your mortgage repayments or rent, and other day-to-day living costs, until you are able to return to work.
You can choose cover that pays a monthly income either until your planned retirement age, or for a limited period. Most policies have a deferred period before payments start once you make a valid claim. The premium you pay varies depending on factors such as your age, your health, the nature of your job and, of course, the level of income you wish to protect.
If you become ill or are injured during your working life, an income protection policy helps guard against the possible loss of your income.
Accident protection provides cover if you suffer a broken bone or injury due to an accident. It also covers you for hospital stays, and pays out on accidental death with funeral cover.
Terms and conditions apply. Cover can be taken out between the ages of 18 and your 60th birthday, and can continue up to your 70th birthday. Hospital cover applies after the plan has been in place for 12 months.
There are two main types of home insurance: buildings insurance and contents insurance.
Covers the building itself against things like fire or flood, along with permanent or fitted fixtures and fittings in your home and garden, and any outbuildings that form part of your home. If you own your home it is essential, and if you have a mortgage your lender will almost certainly require it. How much do you need? Enough to cover the full cost of rebuilding your property, which is not the same as its market value.
Protects your household goods and personal possessions, such as electrical goods, jewellery, clothes and furniture. You can usually add options such as accidental damage cover and cover for possessions outside the home. How much do you need? Most insurers offer a standard level of cover, usually between £30,000 and £50,000, which suits most households, but do not underestimate the value of your possessions.
Portable possessions. If you regularly take valuable items away from home, consider personal possessions cover (sometimes called all risks cover). Taking gadgets, watches or jewellery abroad usually is not covered under a standard policy unless you select worldwide cover.
Specified vs unspecified. Unspecified possessions are covered up to a set limit, such as £1,500. If you own items worth more, declare each one individually so they are fully covered.
What is not covered. Leaving a property unattended for a long period, in most cases more than 60 days, may invalidate cover, particularly for things like water leaks. Other common exclusions include damage caused by war or terrorism, and storm or flood damage to gates and fences.
Protection matters most if you have a family or people who rely on your income, or financial commitments such as a mortgage. It is worth reviewing even if you already have cover, as your circumstances change over time.
Life insurance pays a lump sum or a regular income to your beneficiaries when you die. Critical illness cover pays a tax-free lump sum if you are diagnosed with one of a range of serious conditions, such as a heart attack, stroke or cancer, while you are still alive.
The main options are term insurance (level, increasing, decreasing, renewable or convertible), family income benefit which pays a regular income rather than a lump sum, and whole of life insurance which pays out whenever you die as long as premiums are maintained.
It pays a regular, tax-free replacement income if you cannot work due to illness or injury, usually after a deferred period. Cover can run until you return to work, for a fixed period, or up to your planned retirement age.
Buildings insurance covers the structure of your home and is essential for homeowners, and is usually required by mortgage lenders. Contents insurance covers your possessions. Many people hold both, often on a single policy.
Not necessarily. Products that look similar can differ in important ways that are hard to spot, particularly with critical illness and income protection. We will help you choose cover that genuinely suits your needs rather than simply the lowest price.
The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
Terms and conditions apply to all policies, and cover levels and exclusions vary between providers.
Book a no-obligation consultation and we will help you put the right protection in place, in plain English.
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