Life insurance and income protection are often overlooked, but they can make an enormous difference when the unexpected happens. Here is what you need to know.
Nobody likes to think about worst-case scenarios. But putting the right financial protection in place is one of the most important things you can do for the people you love. Here is an overview of the main types of protection available and why they matter.
Life Insurance
Life insurance pays out a lump sum or regular income to your dependants if you die during the policy term. It can be used to pay off a mortgage, replace lost income, or simply provide a financial safety net for your family at an incredibly difficult time.
Critical Illness Cover
Critical illness cover pays out a tax-free lump sum if you are diagnosed with a serious illness listed in your policy, such as cancer, heart attack or stroke. This money can be used however you need — to cover medical costs, adapt your home, or simply reduce financial pressure while you focus on recovery.
Income Protection
If you were unable to work due to illness or injury, how long could you manage on your savings? Income protection insurance replaces a proportion of your income if you are unable to work, giving you financial stability for as long as you need it.
Family Income Benefit
Rather than paying a lump sum, family income benefit provides a regular tax-free income to your family if you die during the policy term. For families with young children, this can be a more practical and affordable alternative to a large lump sum policy.
Reviewing Your Cover
Your protection needs change as your life changes — when you buy a home, start a family, or change jobs. It is worth reviewing your cover regularly to make sure it still reflects your circumstances. If you would like to discuss your options, our team is here to help.
Steve Ralph
Financial Adviser