Protection Through The Years
Published on 28th April 2017
When it comes to protection insurance, we hold two firm beliefs:
1. it should form the foundation of your financial plan.
2. cover should be reviewed regularly to make sure it continues to meet your needs.
The latter is particularly important when you are at a particular ‘life stage’. Whether that’s buying a house, getting married, starting a family, setting up in business, or all of the above, protection insurance will help to protect your loved ones and your financial responsibilities.
So what type of cover is right for you?
Term Insurance pays out a lump sum if you die within the agreed ‘term’ (the amount of time you have chosen to be covered for, eg. 20 years). Suitable for mortgage protection or while children are financially dependent on you.
- Whole of Life Insurance pays out a lump sum when you die, whenever that is, as long as you are still paying the premiums. Suitable for estate planning or to cover things like funeral expenses.
- Critical Illness Insurance pays out a tax-free lump sum on the diagnosis of certain life-threatening or debilitating conditions, like cancer, heart attack or stroke. You may decide to buy Critical Illness Insurance when taking on a major commitment, like a mortgage or starting a family, but it can be bought at any time to provide peace of mind.
- Income Protection Insurance pays out a regular, tax-free income if you become unable to work because of illness, injury and some policies cover unemployment. It could help you keep up with your mortgage or rent payments, as well as other living costs, until you’re able to return to work.
Things change – and so should your cover
You may already have one or more of these in place, but it’s still worthwhile reviewing your current cover levels – especially if your circumstances have changed. Ask yourself:
- Whether your family could cope financially if either you or your spouse/partner died?
- How much income would you have if you were taken seriously ill and couldn’t work?
- Would your business survive without you or your key people?
- How would your lifestyle change if you had an accident and couldn’t do the things you do today?
Contact us today for a Life and Protection Insurance review.