Whether you are employed, self-employed, a company director, single, married or have a family, you will have things that you will want to protect, should you be unable to work or worse, you pass away.  

Our independent planners can provide their knowledge, expertise and recommendations on the range of personal protection insurances available, to ensure you have suitable cover in place, in the event of an accident, illness or death.    

Life Insurance 

In the event of your death, life insurance gives your family financial protection. Providing a lump sum to help them pay the mortgage, bills or maintain living standards, can be a lifeline in an already tragic situation, especially if your income is heavily relied upon. 

How much cover and what type you will need, will depend on your own circumstances. Many plans will also pay a lump sum on diagnosis of a terminal illness, where you are not expected to live longer than 12 months. 

There are also different payment options to choose from – some involve a payable lump sum whereas others will pay a regular income. Plus some policies will cover you for a specified period, while others will cover you for the rest of your life. 

Critical Illness 

If you were diagnosed with a Critical Illness and were unable to work, could you cover your monthly outgoings such as mortgage payments, household bills, loans and general living expenses?  

Instead of relying on savings or family to support you, Critical Illness cover removes the financial worry of being ill, by giving you a lump sum of money to live on while you recover or receive treatment. You may need funds for adapting your home or even private medical treatment. 

Typical Critical Illness policies cover a wide range of illnesses and conditions. The type and level of cover you require will depend on what you need to include. With many optional extras available to extend the range of illnesses, include partners or children, have worldwide treatment or to include Critical Illness with Life Insurance cover, it’s highly advisable to seek expert advice from an independent planner to find the right type of cover for you.  

Income Protection 

If you get sick or injured and need to take time off work, Income Protection pays you a regular monthly income. The pay-out is tax-free and can help you protect your finances while you recover. The money can cover anything, like bills, mortgage repayments, rent and childcare costs.  

You can expect to receive around 50-60% of your earnings before tax from your normal income. Because you don’t pay tax on your monthly payments, most of your salary should therefore be covered. 

Income Protection usually pays out until your selected retirement age, death or your return to work, although short-term income protection policies, which last for one or two years, are also available at a lower cost.  

Depending on your situation, you can choose cover with an initial deferred period, during which no payment is received, lowering the cost of the policy. For example, this may be three or six months where you are still covered by sick pay if you are employed.  

However, if you are self-employed you may prefer the payments to start sooner. The policy will be set up to fit in with your sick pay and these policies can only be set up through a qualified planner. 

Family Income Benefit 

Typically, Life Insurance policies pay a lump sum to your beneficiaries following your death. If you think a more regular income would be more advantageous to your family than a one-off payment, you may want to consider a Life Insurance policy with a Family Income Benefit.  

This would provide you with a regular (monthly or annual), fixed, tax-free payment to replace the salary you would have been bringing in, giving your family the peace of mind they can survive financially, should you pass away. 

There are several factors you will need to consider when looking at this type of cover, such as the monthly expenses your family would face if you passed away and if you want to match your monthly salary.  

The length of the policy is also a consideration (e.g. until youngest child would finish full-time education) and you may prefer an index-linked policy, to ensure inflation doesn't erode the value of pay-outs. 

The cost of such a policy will depend on your age when you take out the cover, your health, the length of term and the amount of income you need to cover, as well as other factors. 

Find out more 

You’ve probably got many questions you need answering.  

Our team of experienced, independent and friendly planners will work to understand your situation to allow them to make appropriate recommendations, using the most cost-effective solutions to give you peace of mind that your finances and family are protected. 

We offer a free, no obligation consultation and are available to discuss your initial enquiry by calling 0330 441 2244, completing our enquiry form or emailing [email protected]