What is it?

We all have people and things that we want to protect, be it our homes, our money, our family and our lives. There are various forms of personal and family protection that can pay out lump sums should the worst happen or we are unfortunately diagnosed with a serious illness.

This money can then be used to pay off our liabilities, such as an outstanding mortgage, or be used to fund the cost of specialist private medical care. These types of protection policies go on to cover our income should we be unable to work due to an illness or following an accident.

Why choose it?

We all have our own individual requirements so cover portfolios are always bespoke, but typically you may feel you need protection for the following:

• Critical Illness – pays out an agreed lump sum on diagnosis of a serious or critical illness that is covered by the policy.
• Income protection – pays out a pre-agreed amount calculated to cover an individual’s monthly income should they be incapacitated through illness or following an accident.
• Life Assurance – pays out a pre-agreed amount following the passing away of the insured individual. Most will also pay out on diagnosis of a terminal illness. This policy can be taken on a level term basis – a fixed amount and then perhaps to pay off an outstanding mortgage balance and any other debts. For some it is important to also provide further money for the family left behind to keep them in the lifestyle they were used to, or to ensure plans are fulfilled – funding of children’s education costs, for example.
• Cover can also be taken on a Decreasing Term basis, with the amount linked to the capital and interest repayment mortgage balance, so as the balance decreases with each monthly payment to the lender the cover amount follows suit – these are usually cheaper and to be seriously considered by mortgage holders, especially those with a family
• Mortgage Protection – covers the specific monthly mortgage payment or even also the monthly bills should an individual need to take time off work due to sickness, unemployment or following an accident.

*Subject to criteria and up to date payment of agreed premiums