‘Commonly and mistakenly overlooked, life assurance is one of the most important areas of financial and personal planning. Our experienced protection assessors will work with you to ensure that your nearest and dearest will still be able to cope with affordability and comforts after you are gone, providing you and them with crucial peace of mind both now and in the future’
Most of us think nothing of insuring the home, car and holiday but few of us take the time to insure the most important item – ourselves. If your children, partner or other relatives depend on your income to ensure mortgage payments and living expenses are met then consider the affect on their lifestyle were you to suffer illness or worse, death. Having the right protection in place will help provide for your loved ones were these events to occur
The original form of life insurance, Term Assurance can be contrasted to permanent life insurance products, such as Whole of Life, which guarantee fixed premiums for the lifetime of the insured individual.
Not generally used for estate planning, Term Assurance provides cover for income replacement needs for an individual. Functioning in a manner similar to most other types of insurance, it satisfies claims if premiums have been paid and the contract term has not expired.
Originally intended to provide financial protection to individuals following the diagnosis or treatment of an illness deemed to be critical, Critical Illness cover can be purchased independently or in conjunction with a term assurance policy at the time of purchase.
Some employers may also make the decision to take out Critical Illness policies for their employees. This group contract may benefit from cheaper charging and can be used to protect employees crucial to company procedure.
Whole of Life
Whole of Life insurance guarantees the payment of a lump sum on the death of the policyholder, providing premiums are maintained and full medical disclosure had been provided. Because death is inevitable, premiums for these policies can often prove more expensive than alternative options.
Under Whole of Life cover, a proportion of your monthly premiums are invested by the provider in to life funds. This means that both your premiums and sum assured may change over the policy term.
In contrast to other protection policies, Income Protection provides a regular level of cover were you to be deemed unable to work due to illness or injury. This cover will usually pay regular premiums until retirement, death or your return to work, however will not generally pay out on redundancy.
Income Protection policies will usually pay a percentage of your earnings, set at inception of the policy, and payments are paid free of taxes. However, there may be a pre-agreed period of time to pass before premiums are paid.