Insurances

Protection Policies

Life Insurance

Most life assurance policies are designed to pay out a lump sum of money on the death of the insured person. It is a great way of financially protecting your family. Typically people will apply for an amount of cover equal to their mortgage although cover can be arranged in excess of this to help with other family needs.

The cost of the monthly premium depends on a number of factors which include: amount of cover, term of cover, your age, your sex, your health, your lifestyle, your occupation and your hobbies. There are many different types of cover available the most common of which are detailed below.

If you would like more information please contact us.

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Critical Illness

If you are taking out a life assurance policy you may wish to extend your cover to include critical illnesses as well.

Unlike life cover which pays out on death, critical illness cover is designed to pay a lump sum of money in the event of contracting one of a number of critical illnesses, such as cancer or heart disease, (for a more extensive explanation of the illnesses covered please see our Guide to Critical Illnesses).

Critical Illness Cover can be arranged on its own or more commonly it can be linked to your life insurance policy. If you would like more information please contact us.

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Level Term Assurance

Level Term Assurance is designed to pay a lump sum of money in the event of the death of the person covered. If the option of critical illness is included a lump sum will be payable on diagnosis provided the illness is listed within the policy. The amount of cover and term are chosen at the outset and the level of cover remains the same throughout the policy term.

The policy could cover a single person or could include two individuals, (joint policy). Generally a joint policy will be cheaper than two individual policies making it the ideal choice for couples providing cover for their mortgage and other family needs. These policies are ideal for covering interest only mortgages, where the amount of cover needs to remain the same.

They can also be used to offer wider protection for the family. Premiums can be guaranteed or reviewable, guaranteed premiums will ensure that the monthly cost of your cover will remain constant throughout the life of the policy, whereas reviewable premiums, although possibly cheaper initially, will rise in line with increasing costs. We will be able to advise you on the most appropriate type of cover to meet your personal needs.

If you would like more information please contact us.

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Decreasing Term Assurance

Often referred to as Mortgage Protection this type of policy is designed to pay out a lump sum of money in the event of death or earlier critical illness, (where included as an option).

However, unlike Level Term Assurance the cover provided by this policy will reduce each year making it ideal for the protection of a repayment mortgage where the balance is expected to reduce year on year. Because the cover reduces each year you will only be paying for the cover you need and therefore your premiums will be lower than an equivalent Level Term Assurance policy.

Both single and joint life polices are available to suit individual needs. Premiums can be guaranteed or reviewable, guaranteed premiums will ensure that the monthly cost of your cover will remain constant throughout the life of the policy, whereas reviewable premiums, although possibly cheaper initially, will rise in line with increasing costs. We will be able to advise you on the most appropriate type of cover to meet your personal needs.

If you would like more information please contact us.

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Family Income Benefit

As the name would suggest, this type of policy is specifically aimed at protecting your family. Assuming that any mortgage that you may have is already protected a Family Income Benefit policy will offer the added protection that a family needs by paying a regular monthly benefit in the event of death or earlier critical illness, (where included as an option).

Both single and joint life polices are available to suit individual needs. Policies can provide the level of cover that you require for the time that it is needed. Typically, a policy will be set up to cover a period when your children are growing up and will continue until they are financially independent.

The level of cover will be calculated to suit your family’s needs and can be indexed linked to protect you from the ravages of inflation. We will be able to advise you on the most appropriate type of cover to meet your personal needs.

If you would like more information please contact us.

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Income Protection

often referred to as Permanent Health Insurance, this is a product designed to replace your income in the event of you being unable to work following an accident or illness. The amount of cover provided is based on your earnings and will be paid until you are well enough to return to work or until the end of the policy if earlier.

The maximum you are allowed to insure for is usually 50% to 60% of your earnings before tax and in the event of a claim will normally pay out a tax-free income. A further feature of these policies is the ability to index link your cover to ensure that it keeps pace with rising costs.

The cost of the monthly premium depends on a number of factors which include: level of income to be protected, term of cover, your age, your sex, your health, your lifestyle, your occupation and your hobbies. One other factor which influences the premium is the deferred period. When you make a claim there is a deferred period before the benefit is paid.

Normally deferred periods are from 4 weeks to 104 weeks, the longer the deferred period the cheaper the premium. The deferred period should be set to coincide with the cessation of benefits payable by your employer, for example if you will receive sick pay for the first 3 months off work a deferred period equal to this would ensure continuity of your income. If you are self employed you will need to calculate how long you could survive without a regular income and choose a deferred period that suits.

These policies can be complicated and we need to take into account any existing policies you may have as well as any employer related benefits, therefore their arrangement requires advice.

However, we will always make the application process itself as simple as possible and we are able to source from the ‘whole market’ therefore ensuring you obtain the best and most appropriate policy. If you would like more information please contact us.

As an alternative to income protection you may wish to consider Mortgage Payment Protection Insurance (ASU). Please see details within our General Insurance section.

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