PROTECTION
Ensuring your car or your latest smartphone seems like an essential need to protect some goods we all rely on!
What about having a family, financial dependants, or a mortgage? Or your regular earned income offers you comfort which you can lose when some unexpected event happens? Protection in place can keep you safe from financial turmoil while you are dealing with a life event.
Protection covers different types of insurances designed for different needs: life insurance, critical illness cover, income protection insurance.
LIFE INSURANCE
Life insurance is not compulsory, but it is taken for peace of mind that your loved ones won’t have to struggle financially in the event of your death, as the lump sum paid out at your death can help them with an outstanding mortgage commitment and/or help with your dependents financially.
- gives you protection for the policy term
- pays out a cash sum if you were to die during the policy term
- range of cover options, and therefore a range of monthly premiums that can suit your needs and budget
- can be taken out together with critical illness cover, which pays out a lump sum upon diagnosis of a specified critical illness.
Premiums depend on different personal factors:
- The higher the amount of cover you choose, the more it will cost you monthly
- The longer the policy lasts, the more it will cost you monthly
- The older you are, the more expensive your policy is likely to cost
- If you smoke or have a pre-existing medical condition, it will generally cost more
According to your specific circumstances and needs, as well as the monthly budget you have available to pay for the monthly premium the policy will be adapted to match your expectations.
CRITICAL ILLNESS COVER
Usually taken with a life cover, the main aspect of critical illness cover is to help you financially if you are diagnosed with a specified critical illness during the policy term.
- Critical illness cover gives you protection for the policy term
- It pays out a cash sum if you were to be diagnosed with a specified critical illness during the policy term
- The cash lump sum can pay off your mortgage or help your family or unexpected expenditure determined by the medical condition
- It comes with a range of cover options, and therefore a range of monthly premiums that can suit your needs and budget
Critical illness plans may not coverall all definitions of a critical illness as they differ between providers, but the aspects presented above cover the key features of the plan.
INCOME PROTECTION INSURANCE
If you become ill or have an accident, an income protection policy could pay you a regular monthly sum, tax-free. Considering that statutory sick pay and state benefits are insufficient income protection is needed it.
- this type of cover usually pays out until retirement, death, or your return to work.
- shorter-term policies come at a lower cost.
- Income protection policies do not payout if you’re made redundant.
- these policies can cover you up to a set percentage of your income (50-65%) or up to a set monthly amount, (£2,000), depending on the provider.
Income protection insurance offers financial peace of mind at an uncertain time, by paying a regular income if you are unable to work.
