Life Insurance

Life Cover

Life insurance is designed to protect loved ones and provides peace of mind in the knowledge that if the worst should happen their financial security is ensured.

There are a number of different types of Cover:

  • Decreasing Term – this type of Life Insurance is arranged to cover a loan or mortgage.  The level of cover decreases, approximately, in line with the reducing mortgage balance.
  • Level Term – the benefit under this type of cover remains constant throughout the term.  This type of Life Insurance is often arranged to protect interest only mortgages or to provide dependents with a lump sum in the event of a claim.
  • Family Income Benefit – these policies provide a regular source of income rather than a lump sum.  In the event of a claim a sum will be paid each month (or year) until the policy ends which is presently free of tax.  This is a cost effective and simple way of replacing lost income.  The term can be set to coincide with children becoming financially self supporting.

Critical Illness

This type of insurance is designed to pay out lump sums on the diagnosis of a life threatening condition such as heart attack, cancer or stroke – provided the condition is covered within the policy definitions.

Many insurers include life cover with their critical illness policies at little or no extra cost.  The key difference between the two policy types is the insured party does not have to die to make a valid claim.

Each insurer has a different definition of a ‘critical illness’ with the average number of conditions being 32 and the maximum number of conditions being 166.

The lump sum can be used for any purpose.

Income Protection

Also known as Permanent Health Insurance, this type of policy offers long term protection against sickness or injury.

Illness can have a serious impact on a family’s standard of living and instead of protection against life threatening illnesses, it provides protection against all ailments – providing an income of up to 65% of previous pre-tax earnings – and covers against being unable to work owing to sickness or accident.

The qualification period is usually tailored to fit with the end of sick pay provided by an employer and the benefit period will continue until the insured returns to work or dies or the policy expiry date.

When it comes to looking after the important things in life, family normally comes first.  Income Protection is all about planning ahead by providing financial security for you and your family.  There’s a lot to think about over a lifetime and a little protection in the right place at the right time can help make all the difference.

If you have any queries or would like more information, please don’t hesitate to contact us.