Life, Illness and Income Protection Cover

Protection needs fall under 3 main categories: -
a) Life cover
b) Serious Illness cover
c) Income protection

It’s important to note that all three areas above apply to both the private client and the business customer.

a) LIFE COVER : There are many different type of life cover but essentially they fall under three types;

Mortgage protection :
The cheapest form of Life cover, as the amount of cover reduces as your Mortgage reduces.

Term or Level cover :
Here you arrange a fixed sum of cover for a fixed term such as 10 years. You can add some options to this such as Indexation (i.e. keep pace with inflation) and Convertible option (i.e. right to extend the policy before the term expires without the need for any further medical underwriting). There are other options which can be applied here.

Whole of Life :
Is the most expensive form of Life cover as there is a guarantee that once all premiums are paid then the policy will have to pay out on the event of death. Not to get too technical here there are a number of options here to choose from and I can go through these with you in more detail over the phone or face to face.

b) SERIOUS ILLNESS COVER :
Provides a lump sum on diagnosis with certain types of Illness such as Heart disease and invasive cancer.

It can assist at a time of hardship and at a time when income may be disrupted, all the while increased bill are coming in.

This cover can be set up with your life cover or separately but again it is important to know your options and to have discussed same with your financial advisor.

c) INCOME PROTECTION or Permanent Health insurance :
To me this is the crème de la crème of covers. Income protection provides you with an Income in the event of you being unable to work due to Illness or Accident - normally up to your chosen retirement date. There are different levels of cover you can apply for but you can essentially both protect your salary and any payments you are making into a pension plan.

Also good to know, premiums paid will trigger tax relief back to you the customer.

 

Part of the planning process I go through with clients entails looking at the three areas above and calculating what is the right amount of cover for each individual and what type of cover is most suitable. I work these levels into each individual household and business budget.

 

Above is just tipping the iceberg, call or email us and we can discuss the above in much greater detail with you.