Protection FAQS

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Q What different types of protection are there?
A

You’ve got life insurance, critical illness cover, income protection, business protection, whole of life, and many others, but these are the biggies.

Q Why do I need life insurance?
A

Sometimes it’s useful to look at this question from the following angle; If I were to die, how much money would your family have to live on? Would they be able to cover the mortgage? Many families would run out of money very quickly, adding financial stress to an already difficult time.

A pay out from an insurance policy could be the difference between your loved ones facing financial hardship and being able to maintain a similar lifestyle to the one they enjoyed while you were still here.

Q Why do I need critical illness cover?
A

Critical illness cover is there to provide you with a tax free lump sum in the event of you being diagnosed with a critical illness. The definition varies from insurer to insurer, but some of the main conditions this policy covers are cancer, heart attack, stroke, multiple sclerosis, Parkinson’s, loss of limbs, and many others.

Many people opt to take out critical illness cover alongside their life insurance, tailoring the amount to cover loss of earnings and financial commitments should you be unfit to work.

Q Why do I need income protection?
A

Income protection is there to provide you with an income in the event of you being diagnosed with a critical illness, or something that deems you unfit to work.

Q How much cover do I need?
A

Levels of cover will vary based on lifestyle, circumstances and budget. Many will apply for enough to cover their mortgage and other financial commitments. Others will choose to include lump sums to help secure a standard of life for loved ones.

The flexibility of insurance means that you and your adviser can tailor a policy to your specific needs and budget.

Q How much does insurance cost?
A

Probably less than you think. For example, a 30 year old, healthy non-smoker could get a 30 year term life cover policy that would pay a lump sum of £150,000 for as little as £8 per month. Adding £50,000 critical illness cover to the above policy would take the monthly premium to approximately £20.

Q Why do I need buildings and contents insurance?
A

Buildings insurance is mandatory when you own a property. It’s just like when you own a car, you must have car insurance. Contents insurance is there to provide cover for anything that gets damaged or stolen from your home. Like all insurances, this can be tailored to fit your needs.

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