What protection do I need?
6 Nov 2020
Life insurance, protection. It’s not a one-size-fits-all deal.
The old caricature of the pin-stipe salesman flogging policies to people that don’t need them isn’t real. Responsible providers always aim to protect people according to need … and not everyone needs everything.
So here’s a rundown of various types of cover and how they may (not) fit for you - your age, stage, and circumstances.
Life Insurance pays a cash lump sum to your family if/when the worst happens.
Sure, a pile of cash won’t make a devastating time any better, but it’ll probably stop things getting worse for those you leave behind.
At the very least it offers your family some breathing room: a safety net to cover costs, pay bills and rebuild.
Do I need Life Insurance?
It depends. If you’re a homeowner and/or you have children, then almost certainly.
But if you’re young, free and single, with no significant overheads, then other policies could be more your thing. Read on.
FAQs and more about Life Insurance
You’re much more likely to be off work sick than you are to die before retirement. That’s why Income Protection exists.
If you’re ever signed off work, due to sickness or injury, IP pays 50 - 70% of your wage each month so you and your family can meet your financial commitments.
With no Income Protection, after your employer-sick-pay runs out you’re entitled only to Statutory Sick Pay of under £100 per week*. It’s not much.
With IP, you won’t have to blitz your savings, get into debt, or dramatically alter your lifestyle.
Do I need Income Protection?
Almost certainly. We all like to think we’re bulletproof, especially younger folks, yet the average IP claimant is only about 40 years old.
No one expects to be out the game sick or injured … but it happens. Bad back, mental health, broken leg … it happens.
FAQs and more about Income Protection
Critical Illness Cover
Critical Illness Cover pays a lump sum upon diagnosis of a specified serious illness.
CIC prevents the financial upheaval you and your family will no doubt endure after a diagnosis or injury disrupts your working life - and life as you know it.
Do I need Critical Illness Cover?
At a horrific time, the last thing you and/ or your family want to worry about is money so Critical Illness Cover is advantageous for anyone.
FAQs and more about Critical Illness Cover
Mortgage Protection Insurance
Should something unforeseen happen to you, Mortgage Protection Insurance means your family can maintain repayments and/or pay off the mortgage without any forced financial manoeuvring.
Do I need Mortgage Protection Insurance?
If you’re a homeowner - probably. Whether Mortgage Protection Insurance is necessary depends what other protection you have in place. Call us and we’ll explain.
FAQs and more about Mortgage Protection Insurance
Family Income Benefit
Family Income Benefit is like life insurance that pays out (tax free) every month, instead of via lump sum.
Should you die or be diagnosed critically ill, regularly monthly payments can ensure you and your family keep the train on the tracks.
Do I need Family Income Benefit?
FIB can work well alongside other policies, but it may not be necessary if you’re sufficiently covered by other products.
FIB is like receiving an income that no-one has to work for. Steady monthly payments may be more a pragmatic solution than an overwhelming lump sum.
FAQs and more about Family Income Benefit
Over 50s Life Cover
You may know it from TV. Over 50s Life Cover is for anyone aged 50 - 80 (sometimes up to 85) with guaranteed acceptance and no lengthy medical questionnaire.
It means leaving a lump sum behind; either as a gift or to cover expenses. The average cost of a UK funeral, for example, is over £4,000**.
Do I need Over 50s Life Cover?
If you’re the right age then it’s a good - and often low-cost - way to leave a little extra; and/or to complement other policies you may have in place.
FAQs and more about Over 50s Life Cover
We’re here to help you protect the life you love in all ways possible.
So call us on 0800 316 7253 or request a callback from one of our expert advisers and we’ll happily answer any questions you have. We look forward to chatting very soon.