Protection
Protection
When it comes to protection, each customer’s circumstances are unique. We'll work closely with you to tailor a solution which meets your individual needs, and fits with your budget.
Life Cover
Life Insurance is a way of helping your family to cope financially when you die. The payout can be used to clear a mortgage or just cover everyday living expenses. It is very important to ensure that the right money gets into the right hands at the right time and we will work to set up policies which will make this happen.
Critical Illness
Critical Illness cover will provide a lump sum payout should you be diagnosed with certain illnesses or diseases. The conditions usually covered tend to be long term and very serious, for example cancer, heart attack, stroke , multiple sclerosis or loss of a limb.
It is important to consider in such a situation how you would meet your current financial commitments whilst at the same time paying for any required treatment. A Critical Illness pay out could repay all or some of your mortgage or provide funds for private medical treatment, adaption of house/car etc.
Family Income Benefit
Whereas normal Life Insurance is designed to pay out a lump sum in the event of death, Family Income Benefit pays a regular monthly amount. This can be used to replace the income of a parent who has passed away, and continue to financially support the family.
Income Protection
An Income Protection policy will provide a regular income if you are unable to work due to illness or disability until you are well enough to return to work or until the end of the policy. It is very important to be aware of how long your employer would be prepared to pay you for in such circumstances. Would this be full pay or a percentage of your current package? Would the amount you will be paid allow you to pay your mortgage, other credit commitments, regular bills and maintain your family’s lifestyle? The income provided by an Income Protection policy will help manage any shortfalls.
Whole of Life
Whole-of-life insurance is a type of life insurance policy which ensures that, no matter when you die, your loved ones will receive a lump sum payout from your insurer. This is in contrast to term life insurance, which only guarantees that there will be a payout should you die within the specified term of the policy.
Often taken out to cover funeral costs, to ensure those left behind aren't financially impacted immediately on your death.
What's the difference between decreasing, level, or increasing or index linked cover?
Decreasing Cover
The amount of cover that was taken out at the start will reduce over the term, so that at the end of the term the amount of cover would be zero. This is usually arranged alongside a repayment mortgage, the balance on the mortgage will reduce over the term so at the end of the mortgage you'll not owe anything. In times of high interest rates, you need to regularly review your cover to ensure that it will fully redeem the mortgage should you need to claim.
Level Cover
The amount of cover that was taken out at the start will remain the same over the term of the cover.
Increasing, or index linked cover
Increasing cover, also known as index linked, adds an annual increase to the amount of cover you have. This does also comes with an increase to the premium though. This is applied to ensure that the effects of inflation don't reduce the amount of cover in real terms. This type of increase typically applies to covers like income protection, or family income benefit, which are usually taken out to maintain a standard of living. Without anti-inflationary increases, the amount of cover may not be sufficient to cover all costs in the future.