No one likes to think about bad things happening, whether that’s an illness or even losing your partner. But it’s important to consider how you would pay the mortgage and maintain your family’s lifestyle if it did. That’s where protection comes in to help.
We’ve put this article together to explain the different types of protection and how they can protect your family’s future. That way, you can focus on enjoying today – safe in the knowledge that if the worst happens tomorrow, your family will be protected.
Critical illness cover: What is it?
If you or your partner can’t work because you’ve been diagnosed with a serious illness, have you thought about how would you pay your mortgage and support your family? This is where critical illness cover comes in to help you.
Critical illness cover is an insurance policy designed to protect you if you are diagnosed with certain illnesses during the policy term. You’ll receive a tax-free lump sum upon the diagnosis in the event of a successful claim. And there are no restrictions on what you can use the money for. So you could choose to pay for health-related costs with the money or use it to cover lost income allowing you to focus on your recovery. But despite it offering valuable financial help in a time of need, according to the latest research carried out by Mortgage Advice Bureau over 50% of homeowners aged 18-40 years don’t currently have critical illness cover in place. So if that includes you, then it’s vital that you consider it.
How much critical illness cover do I need?
Our protection specialists will consider any provisions you already have in place such as sick pay from your employer to see if it will be enough for what you need. However, you might find this won’t be enough to maintain your current living standards if you can’t work for a long period of time. We’ll look at solutions that could provide your family with financial security.
Life insurance explained
None of us know what’s around the corner and sadly for some families this will include the loss of a loved one. Along with having to cope with the emotional pain, bereaved families will also need to look after practicalities such as how to pay the mortgage, household bills, childcare costs, and try to keep life going. Many people also want to know there will be money available for the nice things in the future too like holidays. And it can be especially difficult if children are involved.
And life insurance can be a lifeline. When linked to a mortgage, life insurance will pay out a lump sum. Which means if the worst happens, at least your family will be financially secure.
How much life insurance will I need?
Again, our experts will look at anything you may already have in place such as a death in service benefit as part of your employee benefits. Then we’ll discuss your needs and you’ll choose what level of life insurance you want. This will determine how long you’re protected for and how much will be paid out should you make a claim.
What is family income benefit?
An affordable option many opt for to protect their loved ones is to take out a family income benefit policy. Family income benefit is a type of life insurance that pays out a fixed monthly or quarterly income from the date of the policy holder passing away and the policy expiring.
And premiums tend to be lower than traditional life insurance because the insurer is less likely to have to pay out a significant sum and even if they do, they won’t need to pay it out all at once. Some providers give the option to commute to a lump sum.
Your individual circumstances will dictate which policies are right for you and that’s where we can help. Our team of expert protection advisers can help you assess your circumstances and choose the right protection for you. So get in touch today! Contact us online, or by phoning 028 6632 7116.