Protecting your family

Why would you need protection?

It is very true that not everyone needs insurance. Life assurance, for example, pays out a lump sum on death, and if you are a single person with no dependents then you may consider it a waste of time as you are leaving no burden and that lump sum is of no benefit to you. For the main breadwinner in a family with small children however, the need is very obvious. Take away that main income unexpectedly and it would not be long before the financial stability of the family is seriously affected. 

We can help you to decide the type of cover you need; how much you should ideally have, and then indentify the most cost effective solution for you from a range of providers.

Life Assurance

The most common reason for taking out life assurance will be to cover a mortgage, but if you have dependents, you also need to consider the consequences for them, if your income were to be permanently removed. How much do you earn? Do you have debts? How much is your mortgage or rent? Do you pay school fees? How long before your children will be financially independent? Does your partner work? Could they continue to do so without your financial support? 

Although life assurance is most often used to provide a capital sum, perhaps to pay off the mortgage and other debts, it can also be used to provide a regular income for general living expenses, childcare costs and school fees.

Critical Illness Cover

This pays out while you are still living but in the event that you suffer from any one of a number of specified critical illnesses such as cancer, stroke or heart attack. Like life cover it pays out a lump sum, the objective of which is to help you fund any changes which may need to be made to your lifestyle as a result of that illness. For example, you may need to pay off your mortgage, or make changes to your home to meet new mobility requirements. Alternatively, you may simply want to give up worrying about money and make the most of your opportunities whilst you can.

Critical illness can be just as beneficial for single people with no dependents as it could be the only source of financial support in the event of a serious illness.

Income Protection Insurance

Income Protection Insurance (IPI) can replace a substantial part of your income in the event you are unable to work. Typically, you can cover up to two thirds of your gross income, less any state benefits for which you become eligible.

This income is paid until retirement age, the end of the policy term or your return to work, whichever happens sooner. Consequently, whilst you are rehabilitating or coming to terms with changes in your life, your financial position is secure. This can be of particular benefit if you are self-employed, because your job does not come with any sick pay.

For more information, please contact us so that we can outline the possibilities for you, without obligation.