Protection & Life Assurance

Protection

Could your family cope if you weren’t around or were taken seriously ill?
Would reducing or clearing your financial burdens help?

Protection forms an important part of the financial planning process and is a consideration we and our clients make. It is important and should not be overlooked.
You can spend a lot of money on protection, so ensuring you get good value for money and the kind you have is relevant, and is important. There are many different types of protection – some of the main types are detailed below.

Life Cover

Life Cover provides a guaranteed sum assured that will pay out in the event of death during the policy term. The sum assured can increase or decrease and the term can be varied to suit your needs. This type of cover is widely used to protect mortgages, but can also provide your family with a one-off lump sum benefit in the event of your death.

Premiums are usually paid monthly and are usually pre-determined through a process called underwriting. This process looks at your history and your family’s history and produces a tailored quotation specific to your needs.

This type of cover can be used on a personal basis to provide a benefit for your family, or for business purposes to ensure continuity and for dividend protection.

Cover is provided when your family or beneficiaries need it most. This type of cover forms an important element of financial planning considerations.

Critical Illness Cover

Critical Illness Cover provides a guaranteed sum assured that will pay out in the event of being diagnosed with a pre-determined definition of a ‘Critical Illness’ during the policy term. Unfortunately, these definitions can vary from provider to provider, so ensuring a policy has a quality and relevant list of definitions is vital. Just like Life Cover, the sum assured can increase or decrease and the term can be varied to suit your needs. A common use of this policy is as an add-on to Life Cover that is protecting a mortgage, but can be used to provide the family and person who is covered, with a lump sum benefit on diagnoses of a critical illness during the policy term.

Premiums are usually paid monthly and are usually pre-determined through the underwriting process.

This type of cover can be used on a personal basis to provide a benefit for your family, or for business purposes to ensure continuity and for dividend protection.

Unfortunately, the statistics around this type of cover are quite shocking, with more and more of us becoming likely to be diagnosed with a critical illness. Luckily, this type of cover provides a valuable benefit to many people and is there when needed most, meaning you can concentrate on getting better.

This type of cover forms an important element of financial planning considerations.

Income Protection

Income Protection provides you with an income in the event of you not being able to work due to sickness or unemployment during the policy term. It will pay this income for a set period of time, or until you are able to return to work. It is unlike Critical Illness Cover in the way that the benefit is a regular income, based on how much you earn, but it can be used to cover similar scenarios. It helps to ensure you do not fall behind on regular bills and the cost of living.

Premiums are usually paid monthly and are usually pre-determined through the underwriting process.

Unfortunately, the statistics are quite shocking. The likelihood of one of use not being able to work due to sickness of unemployment is increasing, but luckily this type of cover can provide a valuable benefit when you need it most, so you can concentrate on getting better and back to work.

What cover is best for me?

Unfortunately, this is not an easy question. It all depends on your personal circumstances. The cost of cover changes from provider to provider and so do the details of each individual contract. The underwriting process adds another layer to this, as the cost and details of the contract may change.

What is important is that the cover you have is relevant, adequate and affordable – getting this balance can sometimes be difficult.

Also, because there is no investment element to any of these covers, ensuring you get the most back that you can is key.

Trusts

A trust is a legal instrument which helps the process of receiving claim monies more fluid and tax efficient.

Trusts are an important part of arranging your protection. Our advisers are experienced in writing plans into trust. Please speak to us if you would like to take a new policy out in trust, or have an existing policy and would like to write it into trust.

The Financial Conduct Authority does not regulate trust advice.

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