Protection & Insurance

With over half the men and women in the UK currently either with too little life assurance or none at all, it’s little wonder that more often than not, when serious illness or tragedy strikes, those closest around you plunge into financial turmoil. Whether it is having to cope with the laws of intestacy because there is no Will, not having enough money to pay off the mortgage or debts or simply losing an income, it is vitally important that you consider protecting your life, your income and your wealth. A question often asked is why do we value our houses and cars with insurance but not ourselves?

When thinking about a strategy for protection, you should consider the following key areas;

Life Protection – how much do my loved ones need to repay my debts and provide them with an income if I were to die?

Critical Illness – if I suffered a serious illness, what kind of lump sum would I want to help me maintain my standard of living?

Income Protection – how much do I need each month to live on and how long will my employer pay me this income?

Once you have those questions considered you can begin to piece a protection strategy together. Let us help you answer those questions and advise you on the best plans to suit those needs.

Life Insurance

We all recognise that you have to insure your house or your car, we even know we need to cover our debts but how many people truly understand the impact of losing a loved one. The emotional loss is terrible enough but the financial consequences can be devastating. Imagine losing a spouses’ income or support? The effect can leave the family struggling to cope with the pressures of gas bills, council tax and your debt payments. Simple cover can alleviate this with one comfortable tax free lump sum or even a monthly payment for a fixed period. Serious Illness cover, critical illness cover, life cover or family income benefit, the right plan can be tailored to your pocket and your needs

Critical Illness

Critical Illness cover was devised more recently during the late 1980’s. It is a protection plan that pays out if you live. Guided by a list of defined covers, a critical illness policy will pay you out a lump sum or income should you contract one of the listed illnesses. Modern contracts can cover a total of up to 59 critical illnesses ranging from Alzheimer’s, Cancer, Deafness and Stroke. The plan is designed to alleviate any financial worries should you fall ill and not be able to work. The illness is defined by your medical team, underwritten by the company and, if qualifying, paid out to you or your beneficiaries within weeks of the illness.  

With statistics such as 1 in 3 people will contract some form of Cancer, critical illness, although a little expensive, is a vital form of cover as part of the protection strategy planning. It is important to know what is covered and what is not. It is, as it says, designed to provide financial support in the event of an illness that renders you critically ill. With a range of covers available from many different providers, a thorough examination of the types of contract available in the market place it vital to ensuring you get the best value for money and cover. 

Contact us for a valuable discussion on the benefits of critical illness cover.

Income Protection

It is not surprising that many people confuse income protection policies or permanent health insurance (PHI) with accident and sickness or even the dreaded PPI contracts. A suitable PHI product can provide you with an income replacement should you fall ill or be unable to do your own occupation up until your retirement date. This form of planning provides you with some seriously good cover often at a very reasonable price. It is highly dependent on your occupation and is most appropriate for those who are self employed. Whatsmore, it can be considered as a trading expense and deducted from your overall tax bill (it’s important to note that this has to be verified by the revenue before authorisation).

For advice on how to calculate your possible income requirements and state benefit entitlement, please click to enquire. 

Serious Illness

Unlike critical illness cover, serious illness cover is designed to pay a portion of the total level of cover based on the severity of the illness suffered. Critical illness will either pay the cover out in full or nothing at all. If it doesn't pay out, even though you are quite sick, you and your family can be left in financial difficulty. For example, if the life covered suffers a stroke but doesn't have permanent symptoms, critical illness cover will not pay. A serious illness plan can pay out 25% of the total insurance value (depending on its definitions). What's more some plans retain the balance of the sum assured as continuing cover. This means that if you suffer with cancer, are treated but then develop it again at a later date, it may be possible to claim again.

It is important to understand the basis for the cover, what will pay, how much it might pay and when it might pay. Our deep understanding of this type of cover enables us to advise you correctly on the type and level of cover that is right for you. Contact us to discuss your serious illness needs.

Family Income Benefit

This little known life assurance product can provide you with an incredible cover to replace lost income should a spouse or partner die. A family income benefit plan will pay a set amount of tax free income on a monthly, quarterly, six monthly or annual basis from the date of death to the end of the plan term. This means that a family can carry on receiving the income lost from the death of a parent or parents. The plan should be used along with lump sum life cover to repay any debts on the estate and to ensure future financial security. There are many Family Income benefit Plans in the market, contact us for help and advice on the most suitable plan for you.