The aim of life protection (or life assurance) cover is to protect you against the unexpected. It will provide money for people who financially depend on you. We need to consider the impact and consequences our death would have on the people most close to us.
We can look at your lifestyle to tailor a protection package, ensuring your family will be financially secure whatever life throws at you. Helping you to protect the things that are important; your family, your health and your lifestyle.
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You only get a pay-out within the 'term' of your policy. The payout also known as the Sum Assured is defined when your policy is accepted and started and can be either on a fixed basis (the payout is a fixed amount) or on a decreasing or increasing basis (the payout can either decrease or increase in line with an interest rate or an index) and continues through the term of the policy until the end. Level Term Assurance then guarantees a fixed lump sum to pay out upon death within a fixed time.
Decreasing or Increasing Term Assurance then guarantees a lump sum that either decreases or increases throughout the life of the plan in line with an interest rate or an index within a fixed time. Decreasing Term Assurance and Increasing Term Assurance are very useful to cover the outstanding amount on a Mortgage (Decreasing Term Assurance) or known future increases in wealth to be insured (Increasing Term Assurance).
Family Income Benefit
These policies are intended to meet the needs of parents with (or planning to have) children to offer protection in the event of their death(s). They provide for an income payable from the date of death until a fixed time in the future (e.g. the youngest child's 18th or 21st birthday).
Whole of Life Assurance
These are policies that provide life assurance for the whole of your life (as opposed to Term policies that could last for any number of years. For example a Term policy could last 5, 10 or 25 years then finish). Whole of Life insurance guarantees to pay out in the event of death, whenever it occurs, generally as long as the premiums are paid. The premium you pay may also include an investment element which helps to pay for the cost of cover over time.
Critical Illness Cover
For many the financial risks of a serious illness or injury are more important (and likely) than death, as it may lead to loss of work, treatment and additional care costs etc.. A critical illness policy will make a lump sum payment on diagnosis of defined “critical” illnesses, serious conditions or injuries. The covered conditions, and level of payment, vary greatly from policy to policy so it is vital to read the terms and conditions of each rather than simply choosing the cheapest.
Income Protection Insurance is designed to pay a regular tax free monthly income if you are unable to work due to illness or injury, but as defined by the terms of each individual policy.
There are other providers of Payment Protection Insurance and other products designed to protect you against the loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk
Private Medical Insurance
Private Medical Insurance allows you to pay for the costs of private medical treatment, either by meeting the costs of private medical care or as a lump sum payment (depending on the specific policy). The specific medical conditions covered and the treatments available will vary depending on the insurance policy.