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Income Protection
Protection insurance policies provide both peace of mind and a financial safety net in the event of illness, injury or death. Regardless of whether you’re single or in a relationship, have dependent children or don’t have children, chances are you will benefit from some form of protection insurance.
You might already have some cover in place. That’s great, but does it still meet your needs? It’s helpful to make sure you review your cover every few years or whenever you have a change in circumstances such as marriage, civil partnership, having children, moving home, a relationship breakdown, a new job… all these events could have an impact on what cover you should have in place. Your adviser is best placed to help you find the most appropriate cover for your circumstances.
Critical Illness Cover
Critical illness cover will pay out if you are diagnosed with a specified serious illness. Cancer, heart attack and stroke are the three main conditions, though there can be many more. With some policies there are over 50 named conditions. Each condition will have a specific explanation as to what will result in a paid claim, for example some less advanced cancers might not be covered as they aren’t deemed ‘critical’.
Critical illness cover is designed to provide financial support and remove money worries at a time when the focus needs to be on your health. The money can cover everyday expenses but could also be used for private treatment, adapting the home to meet medical needs and/or enabling loved ones to take time out of work to care for you.
Do be aware that not every illness is covered by critical illness insurance, nor does it have any relation on whether you are able to work or not – for that type of cover, please see income protection. Many policies also offer children’s cover meaning if your child is diagnosed with a serious illness, a lump sum would be paid out to help with treatment or to support the family during this difficult time.
Life Protection
The most well-known type of insurance. This will pay out either a lump sum or a regular income should you pass away, to provide financial support to your dependants. The cheapest form of cover is known as a ‘term assurance’ policy. You choose how long you want cover to last for, which could be until your children are no longer financially dependent on you, or you could align it with your mortgage term to ensure your mortgage is paid off.
The other main type is known as ‘whole of life’. This policy has no specified end date - it simply provides cover until you pass away so is useful to cover funeral costs for example. Your adviser will be able to help you choose the most suitable option for you and your family.