Protection

Protecting those who matter most to you is probably the most important area of financial planning.

Ensuring your loved ones are provided for in the event of premature death, critical illness and other health challenges, will provide you with peace of mind.

 

We cover all areas of protection including life cover/ mortgage protection, critical illness cover, income protection (in the event of being unable to work through ill health) and Private Health Insurance.

 

There are many products available across the market and establishing which products and features best suit your needs can be quite daunting.  We will meet with you and understand your circumstances and objectives and together find the best solution.

 

Types of protection

 

Mortgage protection (decreasing term assurance):
A mortgage is a big commitment.  If you are not around you want to ensure your family are provided for and the mortgage is repaid.  This type of life cover provides ‘decreasing’ term assurance.  You select the level of cover (sum assured), to cover the mortgage amount, and the term to match the mortgage term.  The sum assured typically reduces each year in line with the reducing mortgage amount, assuming it is a repayment mortgage.

 

With mortgage protection the sum assured could help pay off the mortgage if you died during the length of the policy, so your loved ones might not have to think about selling up or downsizing.

 

Level term assurance

This type of life cover provides a fixed level (sum assured) of life cover, selected at outset, over a specific term.  In the event of a claim it provides a lump sum to your family to provide financial security.  This could be used to replace lost income, pay off liabilities or produce an income.   Some policies may contain the option to increase the cover at a future date and/ or increase the term without evidence of health.

 

Family Income Benefit

This type of protection is effectively ‘decreasing’ term life cover.  However rather than pay out a lump sum in the event of a claim it pays out ‘an income’.  A term and sum assured is selected at outset.  This is often helpful to the beneficiary as it provides a fixed regular income rather than a lump sum.

 

Whole of life cover

This type of policy does not have a fixed term like other ‘term’ assurance plans.  The sum assured is paid out on death.  Such plans are often used to cover an inheritance tax liability on 2nd death  as the lump sum will be paid out to provide funds to cover any outstanding tax liability.

 

Critical illness Cover

This cover provides a lump sum, in the event of suffering any one of a number of critical illnesses (eg stroke, heart attack, cancer) during the term of the policy.  This can be a stand alone plan or can be added to most life cover policies.  The chances of you claiming on a critical illness are higher than a claim on a life cover policy.  It could be argued that it is therefore more important than life cover.

The purpose of this type of cover is to provide a lump sum, in the event of suffering a critical illness, to provide funds to provide financial security.  This might help replace lost or reduced income, convert your home to help mobility or repay liabilities.

 

Private Health Insurance (PMI)

This insurance pays for medical and surgical expenses that are incurred by the insured.  PMI ensures prompt access to treatment and often allows you to choose the hospital.  You are given a high standard of care in a timely manner.

 

Income Protection

Income protection insurance is designed to replace some of your income in the event of being unable to work through illness.  There is typically a deferral period (such as 60 days) before the benefit becomes payable.  The cover continues until you are able to return to work, which may in some cases provide protection up to retirement.

 

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