Protection Insurance

 

There are a number of different products which are designed to protect you, your family or business if anything was to happen to you. However with such a vast choice of products you need to ensure you get the right one as they dont all cover you for what you might think.

The products we recommend will depend on your circumstances and may not always be the cheapest option but we will ensure it covers you for what you need.

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Do I need insurance?

People usually think they only need some form of insurance when they take out a mortgage, this is not  true as there are many risk factors. Whether you are renting or living with parents if you have an income or any debts it usually means that you need insurance to ensure you cover any lost income to pay for any debts or repayments.

Taking out insurance doesnt always mean you need to pay a fortune each month, with so much competiion in the market the cost of insurance has reduced over the years.

Some of the products available to you

Term Assurance

Term Assurance is life insurance in it’s cheapest form. The sum assured under the policy is only paid out if death occurs within a specified term.

If the life assured survives until the end of the term, the policy will expire and there will be no monies payable.

There are several types of Term Assurance. The following list is not exhaustive, but it covers the main types:

  • Level term assurance
  • Decreasing term assurance
  • Renewable term assurance
  • Index linked term assurance
  • Family income benefit
  • Unit linked term assurance
House insurance

If you own your own home, you’ll need to have buildings cover just in case your home is damaged and needs a repair. It’s usually a condition of your mortgage and, if you’re a landlord, it’s your responsibility – not your tenants. Although it’s not compulsory, if you own your own home this sort of insurance should be a top priority.

Home insurance is a general term used to describe two very different types of insurance:

  • Buildings insurance – for permanent fixtures and fittings, like kitchens and bathrooms
  • Contents insurance – for things you keep in your home, like furniture, TVs, personal belongings and some types of flooring including carpets

You can buy both types of insurance separately, or in many cases, you can get them as a joint policy from one insurance company.

Mortgage protection insurance

Mortgage protection insurance (also known as ‘mortgage payment protection insurance’ or simply ‘mortgage insurance’) will pay you a set amount each month, usually for a period of up to two years, if you are unable to work.

There are three main types – unemployment only; accident and sickness only; and accident, sickness and unemployment. Unemployment policies will cover you only if you are made redundant. Accident and sickness cover will protect you if have a long-term illness or suffer a serious injury.

Critical illness protection

Critical illness insurance will pay out if you get one of the specific medical conditions or injuries listed in the policy. But be aware that not all conditions are covered and policy will also state how serious the condition must be.

Don’t confuse critical illness cover with life insurance, although they are sometimes sold together.

Examples of critical illnesses that might be covered include:

  • Stroke
  • Heart attack
  • Certain types and stages of cancer
  • Conditions such as multiple sclerosis

Most policies will also consider permanent disabilities as a result of injury or illness.

It only pays out once and then the policy ends.

Some policies will make a smaller payment for less severe conditions, or if one of your children has one of the specified conditions.

Income protection

Income protection insurance (sometimes known as permanent health insurance) is a long-term insurance policy designed to help you if you can’t work because you’re ill or injured.

It ensures you continue to receive a regular income until you retire or are able to return to work.

  • It replaces part of your income – if you can’t work because you become ill or disabled.
  • It pays out until you can start working again – or until you retire, die or the end of the policy term – whichever is sooner.
  • There’s often a waiting period before the payments start – you generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the monthly premiums.
  • It covers most illnesses that leave you unable to work – either in the short or long term (depending on the type of policy and its definition of incapacity).
  • You can claim as many times as you need to – while the policy lasts.

It’s not the same as critical illness insurance, which pays out a one-off lump sum if you have a specific serious illness.

It’s not the same as short-term income protection, which also pays out a monthly sum related to your income, but only for a limited period of time (normally between two and five years) and can cover fewer illnesses or situations.

Find out what insurance you might need and an idea of how much it will cost.

We source our protection policies from whole of market to ensure we can provide you with the most suitable products.