Arranging the right type of protection insurance can seem like a bit of a maze. If this is the first time you have considered it then hopefully you will find this a useful aid and it will point you in the right direction. Scroll down to read a real-life case study or our FAQs.
When considering arranging protection insurance it’s important to take into account your circumstances and what situations could leave you in a vulnerable financial position.
For example, if your partner became ill, or had an accident or worst still was to pass away, apart from the emotional impact, what would the financial consequences be for you and the rest of your family?
Do I need Income Protection?
It might be that the household is relying on their income. This could have a potentially devastating impact. The good news is you can insure yourself against some of these situations, which can help to provide a financial cushion.
For most people the most important product to consider is an Income Protection policy. This type of policy will pay you a replacement income if you were unable to work as the result of an accident or sickness. The most common reasons for claims are due to back problems and mental health issues.
Having an Income Protection policy in place would mean that you will still benefit from the security of an on-going income and you can concentrate on getting better without the stress of worrying about money.
Do I need Critical Illness Insurance?
Critical Illness Insurance cover also makes sense for many people. This type of policy would pay out a lump sum in the event of you being diagnosed with an illness covered by the policy.
Most critical illness policies cover between 40 – 80 specific conditions, but it would pay to take advice as the ‘policy wording’ can differ tremendously between one policy and the next. All Critical Illness Insurance policies cover certain cancers, multiple sclerosis, heart attacks, strokes, kidney failure, coronary artery bypasses, and major organ transplants.
Many people take out critical illness cover to ensure their mortgage debt would be paid off if they were to be diagnosed with one of these serious conditions. However even if the cost of this level of cover is too much, it is always possible to arrange a lower sum assured to keep the costs within your budget. After all, some cover is better than none.
Critical Illness Insurance cover may well be suitable, probably as well as an Income Protection policy, if you have a mortgage. For example, if you were diagnosed with cancer, and the diagnosis meant that you were unable to work for a year or two whilst you underwent treatment, an Income Protection policy would start paying you a monthly income, and a critical illness policy would pay you a lump sum, which you could use to pay for treatment, pay off some or all of your mortgage, or simply put it into your bank.
Do I need Life Insurance?
Life insurance is suitable if someone has dependants who need the security of a lump sum, in the event of you passing away. Many people also take our life insurance which would pay off a mortgage in the event of someone dying. Depending on your circumstances and to ensure you are taking out enough life cover, over a suitable period of time, it would probably be worth you taking some advice.
Is an Insurance Policy all that I need?
As a cohabitee it is vitally important that the benefit of the Insurance policies is passed to either you or your partner in the event of death or a Critical Illness. This is not automatic by law, if no Will has been made. To find out how we can help you at no additional cost please click HERE.