Beginner's Guide to Protecting your Future
It's a sad fact that whilst most of us are quite happy to insure our car, our house and our travel arrangements to their full value, few of us take quite as much care over our health and loved ones. This guide will assist you in considering your own situation.
What is Critical Illness Cover?
Although Critical Illness cover is sold by life assurers, there is a big difference when compared with life insurance - you don't have to die to benefit from the Critical Illness insurance policy. This type of cover is designed to pay out a lump sum in the event of you suffering from certain types of critical illness or if you have to undergo certain types of surgery as specified in the policy terms and conditions.
What is Income Protection Insurance?
Income Protection Insurance is designed to pay you a regular monthly income if you are incapacitated and unable to work due to illness or injury.
What is Level Term Assurance?
The name says it all. It's term assurance, as you only get a payout within the set 'term' e.g. 18 years. Its level, because the payout you get is fixed from the start of the term until the end. Level term assurance thus guarantees a known lump sum payout upon death within a fixed time e.g. ÂŁ150,000 if you die within the next 18 years.
What Is Mortgage Life Assurance?
Mortgage Life Assurance is designed to pay off the remaining mortgage debt on repayment mortgages if you die within a set period. It ensures your dependants need not worry about repaying the mortgage if you die.
What Is Whole of Life Assurance?
Whole of Life Assurance is designed to pay out in the event of death, whenever it occurs. The premium you pay can include an investment element which helps to pay for the cost of cover over time. The cost of cover can be more expensive than term assurance, but there is usually a surrender value too.
The value of Protection
Far from being a luxury, Protection Insurance should be considered essential, especially if you have a family or people that rely on your income.
Life Insurance
Life Insurance (sometimes known as Life Assurance) helps provide financial security for people who depend on you, should you die.
Income Protection Insurance
Income Protection Insurance is designed to pay you a regular tax-free monthly income if you become unable to work due to illness or injury.
Critical Illness Insurance
This type of cover can pay out a (tax-free) lump sum on the diagnosis of certain life-threatening or debilitating illnesses, or if you have to undergo certain types of surgery.
Payment Protection Insurance / Short Term Income Protection Insurance
Payment Protection Insurance and Short Term Income Protection Insurance can provide a monthly income to help cover your regular outgoings if you can’t work due to an accident, illness or injury.
Non Profit Whole Of Life Plans
Non-Profit Whole Of Life Assurance covers an individual for an amount of money that they select when they apply for a policy, this referred to as the “cover amount”. The policy will cover that individual for the whole of their life.