Financial protection is vital in today's world. The vast majority of both families and individuals rely on their income, not only to meet every day needs but also to plan for a secure financial future. The loss of income through death, disability or ill health could spell financial disaster.
Very few of us can afford to meet the cost of these events ourselves. This leaves only two alternatives; firstly, do nothing and hope it doesn't happen. Secondly, transfer the risk to an insurance company by taking out suitable cover.
If, like many others, you do not want to leave things to chance, there are many options available to you. As Chartered Financial Planners, we can advise on all areas of the Protection market from Term Assurance and Critical Illness through to Income Protection.
Level Term Assurance
Level Term Assurance provides a constant level of cover and pays a capital lump sum in the event of death during the chosen term of the plan.
Convertible Term Assurance
Convertible Term Assurance is a term assurance policy with the option to convert before expiry into a qualifying whole life or endowment or, with some policies, a level term or a further convertible term assurance policy.
Mortgage Protection is a type of Decreasing Term Assurance policy. The initial amount of life cover reduces each year, closely matching the outstanding capital debt on your mortgage.
Family Income Benefit
Like a Decreasing Term Assurance policy, Family Income Benefit provides cover in the event of death during the specified term. This type of plan is often used to provide a replacement income in the unfortunate event of the death of either you or your partner over a specified period of time. The benefits (selected at outset) under a Family Income Benefit plan are then usually paid to the surviving partner on a monthly basis for the remainder of the term selected.
Whole of Life Assurance
Whole of Life Assurance, as the name suggests, provides life cover without imposing a limited term. These plans are typically used to provide a lump sum payable on death whenever that occurs.
Critical Illness Cover
Critical Illness Cover provides a benefit (chosen at outset) over a fixed term to provide a capital lump sum in the event of survival for a specified period following diagnosis of a defined critical illness. This type of cover can be provided as a 'stand-alone' contract or in conjunction with all of the above types of policy.
Plans may not cover all the definitions of a critical illness. The definitions vary and will be described in the key features and policy documents if you go ahead with a plan.
Long-Term Care Cover
Long-Term Care Insurance is a plan to meet the costs of care should you become unable to look after yourself in your old age. Planning to meet the cost of care now can avoid using your savings and, in the worst case scenario, your home to meet the costs of care in your old age. This means you can leave your entire estate to your beneficiaries. If you are concerned about planning to meet the costs of care, please contact us to arrange an appointment with one of our qualified consultants to discuss this important area of financial planning.
Protection plans have no cash in value and will cease at the end of the term. If premiums are not maintained then cover will lapse.