Insurance & Protection Planning

It’s not a nice thing to think about but you might not always be healthy. And if you’re not, the first thing you and your family will miss is your income.

Insurance & Protection Planning

It’s not a nice thing to think about but you might not always be healthy. And if you’re not, the first thing you and your family will miss is your income.

Our Protection Planning ProcessTailored to your needs and goals.
Protection Planning FAQs
Whether you see it coming or it comes as a shock, being made redundant can bring numerous challenges, the most pressing of which is usually the loss of your earnings. It’s important to note that most insurance policies won’t cover you for the first three months of your redundancy, so it’s wise to have savings to cover this period.

STIP can provide short-term financial relief, but you should keep in mind that if you were aware redundancy was a probability within 6 months of taking out your policy then it’s unlikely you’ll be able to make a claim. So thinking ahead and preparing for the unexpected is particularly important.
Short term illness
Many people assume they’ll be adequately protected by sick pay should they suffer from an illness which is temporary in nature. However, the Statutory Sick Pay employers are legally obliged to provide is only £96.35 per week, so unless your employer runs a so-called ‘occupational scheme’ to supplement this you could be seriously out of pocket.

Income protection insurance is designed to cover situations where you are no longer able to work due to illness or injury. Self-employed people can find income protection insurance particularly relevant, as their business may depend on them alone.
Injury and critical illness
Whether or not you maintain an active and healthy lifestyle, no one can predict their future health. The Office of National Statistics estimates that 137 million working days were lost due to sickness or injury in the UK during 2016.(Source:

Critical illnesses such as strokes, heart attacks and cancer can necessitate long recovery periods, and permanent disability resulting from injury can affect almost every area of someone’s life. They may also prevent sufferers from doing the same job they once did. If the need to replace your income due to critical illness or serious injury should arise, government benefits may not provide sufficient relief.

Some employers provide critical illness and injury cover schemes, but it is unwise to assume that all conditions and eventualities are covered – always read the small print, and consider taking out a policy which covers any gaps in your employer’s scheme.
Many people use multiple credit cards in their daily lives, and it’s not uncommon to take out a loan to cover home improvements, purchase a vehicle, or to consolidate debt. Mortgages are likely to be the most significant credit people will ever have. The cost of repaying multiple creditors may not pose a problem when you can rely on your monthly income, but what if that should change? It’s easy to see how debt can pile up quickly.

There are different types of insurance which could help to ensure you don’t encounter serious debt problems in the short-term if your circumstances should change suddenly. Short Term Income Protection Insurance (STIP) is a solution that can provide you with an income to cover the cost of your credit repayments and essential outgoings for up to a year.
If you have children, a spouse or other family members who depend on your income, it’s worth thinking about how they’ll manage if you’re no longer there. Money is never going to be enough to compensate for the loss of a loved one, but it will at least mean your family don’t have to deal with financial woes.

Life cover is a sensible option for anyone with dependents who relies on an income rather than being independently wealthy. Cover differs between policies, but most usually only pay out upon death. However, there are options if you’d like your policy to provide a payment upon a terminal diagnosis or serious disability.
Life Assurance
This is cover that pays out on death. Some plans pay upon earlier confirmation of a terminal illness where the prognosis is death within 12 months. It can pay out as a lump sum, or as income for a set period.

Cover can last for a set term called Term Assurance, or can last throughout life, called Whole of Life.

The amount of cover can remain the same or increase / decrease annually. Level term assurance stays the same throughout. Decreasing cover is sometimes used to cover a reducing debt, such as a repayment mortgage and usually assumes a given interest rate. Provided your mortgage rates don’t exceed that rate, then the cover should reduce at around the same rate as the mortgage. The amount you pay is called the premium. It can either be guaranteed not to change, or it can be reviewable.

Reviewable cover normally changes based on the claims experience of the life assurance company.
Family Income Benefit
This cover will pay out if death occurs, and provides an income per year for the term remaining on the policy. For example, for a 20 year term, where the claim occurred after five years, there would be 15 annual payments made in total.

The payments are not normally subject to income tax but may impact some state benefits.
Income Protection
This provides income where you are ill or injured, and as a result your income through employment or your normal route stops. If Houseperson’s cover is included, then it will pay out upon illness or injury, irrespective of any income stopping. Please note - the illness or injury must result in incapacity preventing the applicant from working or in the case of Houseperson’s cover completing a number of ‘Activities of daily Living’.

It is designed to replace most of your net income.

Cover lasts for either a set term in whole years, or to a given age (typically your state retirement age). The amount you pay is called the premium. It can either be guaranteed not to change, or it can be reviewable. Reviewable cover normally changes based on the claims experience of the life assurance company
Private Medical Insurance
This is insurance that pays the hospital or Doctor for your treatment. It can include treatment in a private ward, or being seen earlier in an NHS ward. Some plans also allow you to claim if you are not able to be seen by the NHS within a set period. Other plans may charge a little more and don’t have any link to NHS waiting times.

You are either medically checked and underwritten at outset (so you know what you’re covered for and what you won’t be), or have no medical checking at outset (but conditions that occurred two years before taking out the cover are not covered, and often there is no cover for a reoccurrence within five years after taking out the plan). Premiums are usually reviewable annually.
Critical Illness Cover
Insurance that pays out when a defined medical event occurs. For example, following a heart attack, stroke, cancer or some other specifically defined critical illness.

Cover is for a set term, which may be equal to a mortgage term, for when children have grown up, until retirement or another life stage milestone. It may be worth considering having one policy for a set term to cover the mortgage, and another that will provide money to help provide for your different lifestyle if a serious illness happens.

Most people choose a lump sum to be paid out. There is the option of receiving it as set income over the term remaining, which is often a lower cost option.
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