According to Norwich Union, apathy is leaving 20 million adults at risk because they have no life insurance, health insurance or income protection. It is a sad fact that whilst most of us are quite happy to have insurance for our car, our house and our travel and holidays, few of us take quite as much care over protection for our health and loved ones.
Prioritising protection cover
We’re all different. What you need, what you can afford and what protection plan is right for you depends on the life you lead. Many of us know of someone who had died unexpectedly, have battled a serious illness, been off ill from work or been made unemployed. The financial and emotional impact can be devastating. Whilst we insure our pets, our phones, our homes, our cars… sometimes we forget to insure ourselves.
What are your priorities? Here at Census Financial Planning we can help establish your protection priorities and recommend suitable solutions to suit your budget and needs. As your life changes so will your protection needs, so we will review your insurance and protection along the way to make sure that the cover you have meets your needs.
Some of the following questions may help you decide what is most important to you.
- Do you have young children or others who are dependent on you financially?
- How old are your dependents?
- Do you pay school fees or nursing home fees for others?
- Will those people become financially independent and if so, how long will it be?
- Do you have debts (including a mortgage) which your beneficiaries could not manage, even if only for a short time?
- Do you have any investments which might provide income if you were unable to work?
- Would you need to move house if you were less mobile?
- How do you travel about?
- How far are you from friends, relatives and local amenities?
What are the different types of cover and insurance available?
Mortgage Protection Cover
Have you ever thought about what would happen to your home and your family if your mortgage could not be paid because one of you died, became seriously ill or lost your job? Would you like the peace of mind that you and your family would be safe in your home should something go wrong? Mortgage Protection Cover can be relatively inexpensive and can be set up to protect you and your family against losing your home in the event of a death, a critical illness, unemployment or ill health. Are the most valuable things in your home protected – YOU?
Family Protection Life Cover
Have you considered what would happen financially to your family and dependants if you died? Even if the mortgage has been repaid, is this really enough? Could they afford to maintain their lifestyle and standard of living? How much would you pay to know your family is protected? For a small cost family protection can be set up to provide either a cash lump sum or a regular monthly income to ensure that your loved ones do not experience a rapid financial decline if you were no longer there to take care of them.
Critical Illness Cover
You probably have life assurance for when you die but what insurance do you have in case you live? We’ve all heard the true and shocking statistics that one in three* of us will develop a critical illness in our lifetime or that someone has a heart attack every six minutes*. How would you manage financially if you suffered a critical illness? One in twelve of those diagnosed with cancer are scared of losing their homes. Cover can be put in place to provide you with either a lump sum or an income to protect your home and financial well being should you be that one in three.
Only some forms of cancer, heart attack and stroke are covered in critical illness policies.
Have you ever considered what would happen if you became ill and couldn’t work? Could you live on £85.85 per week*? Bills don’t stop arriving just because we’re sick - could you meet your financial commitments or maintain a reasonable lifestyle? Do you want to make life as easy as possible? If so, income protection cover will give you a tax free monthly ‘income’ of up to 60% of your gross income.
* Statutory Sick Pay benefit, HM Revenue & Customs Website, accessed in April 2012.
Whole of Life
The fact is - we are all destined to die. Would you like to ensure your family are not burdened financially with the costs of your funeral? Would you like to leave your family a lump sum? A Whole of Life plan can be suitable in later life, providing a cash lump sum when you die, whenever that may be.
For Mortgage Payment Protection Insurance and Buildings and Contents Insurance we usually offer products from a limited panel of providers.