Why might you consider protection products? Most people take out insurances to protect themselves against the unexpected things in life. However, we are more likely to insure physical possessions such as our phones or cars than think about protection for ourselves or our family in the event of a death, injury or critical illness. How would you or your family manage if you died or were unable to work due to a long-term illness or injury? There are a variety of protection products available that can be tailored to meet your needs and budget, so that you and your family can be protected should the worst happen.
Life cover for mortgage or family protection
If you have a dependent family, you may need cover to provide for them in the event of your death. Cover can be set up to pay out a lump sum or a regular income and can be used to:
- Repay a mortgage or other debt
- Protect your family against financial hardship in the event of your death
- Pay the costs of taking care of dependent children until the youngest child is financially independent
Cover can be set up in a variety of ways to suit your budget.
Critical Illness Cover
Critical illness cover can provide you with a lump sum if you are diagnosed with one of a list of critical illnesses such as a heart attack, cancer, stroke etc.
The list of illnesses covered varies between providers and policies can be set up as part of a life cover policy, or as a separate stand-alone policy.
Income Protection Cover
During your working life, the risk of being unable to work due to illness or accident is much greater than death. How long could you live without your salary before you found yourself in financial hardship?
The good news is that Income Protection is evolving and there are a variety of different options available depending on your budget.
You can set up full cover until your retirement age, or there are budget options available that can cover you for shorter periods of illness of between one and five years.
Inheritance Tax Cover
Many people are unaware that insurance is available to cover IHT liability. As with other life insurance policies, this can be set up for a particular policy term, or a whole of life basis and as long as the policy is set up ‘in trust’, the sum insured will go direct to the beneficiaries and will not be subject to IHT.
It can then be used to pay the IHT due, rather than forcing the sale of assets such as the family home.