Protection Policies

18th Jan 2023

What is Protection? Do I need it and if so, where do I start…
There are lots of different Protection Policies offered by Insurers, and they all offer different benefits. There’s certainly not a one size fits all policy with Protection, so it is advisable that you get independent financial advice tailored to your own individual needs.
Insurance is a very common concept that we are all used to in everyday life. We insure our cars, our homes, our pets and even our phones, but often people don’t realise how important it is to make sure we have adequate insurance in place to protect ourselves for when things don’t go to plan
Life Insurance Pays a lump sum on death. Can be used to repay a mortgage or to leave a loved one o a lump sum of money. If you own a house with a spouse, could they afford to continue to live in it if you were not around. Do you have children, and you would like to ensure that they are left a sum of money to help them with them with their future. A life insurance policy is a simple contract, that can benefit your family when they need it most.
Critical Illness Cover Pays a lump sum on diagnosis of a defined critical illness. You may not be able to work for a period of time, or possible, depending on the severity of the illness, be able to return to the job you were doing. A lump sum can take away some of the financial worry whilst you are going through treatment or are recovering. As well as practical help ie., paying expenses or paying off your mortgage, the funds could be used to help make memories with your family.
Income Protection Policy Replaces regular income in the event of not being able to work due to sickness or disability. It can help cover essential living costs such as your mortgage, rent or bills and can reduce the financial strain until you are ready to return to work or retire. It is very important if you do not have any sick pay or benefits through an employer, such as being self-employed, that you consider how this type of policy could help you.
All three of these main types of life policies can complement each other and if set up in the right way, can ensure you are as financially protected as possible when the unexpected happens. It’s never too soon to put a plan in place.
So, back to one of my first questions, do you need it? The question you need to ask yourself is, ‘can I afford not too?’
This blog is not intended to replace independent financial advice, if in doubt, please contact us.