Life coverage is a cost effective policy used by many people to protect their family, in the event of their death, during the term of the policy. Life cover is typically used to cover the amount outstanding on your mortgage. The term of the policy would typically run in line with your mortgage. The policy holder is required to make monthly payments in return for a predetermined amount of coverage. In the event of a claim, the specified amount of cover is used to repay the mortgage of the policy holder. Additional benefits are available for an additional monthly premium. Book your financial review and the financial advisor can make the appropriate recommendation.
It is prudent for people to make appropriate steps to ensure they are adequately insured against the effects of a critical illness. The difference between critical illness covers and basic life covers is the specified tax free lump sum is paid when you are diagnosed with one of many specified critical illnesses, during the term of the policy. Critical illness insurance is a more comprehensive form life coverage providing overwhelming financial protection during the insured persons recovery. In the event of a critical illness policy claim, the specified amount of cover, can be used to repay your mortgage. If the specified amount is adequate, it would provide additional cash benefits helping towards associated living costs and care costs related to your recovery. Critical illness insurance allows the insured person to concentrate on their own recovery, without any financial burden and concerns about losing their home. There are many additional options available for an additional monthly premium. The financial advisor can discuss these options with you, during your financial review.
1.3 million people in the UK today, have survived a stroke. One person every five minutes will suffer a stroke or transient ischaemic attack (TIA). In the UK today, one person every three minutes will suffer a heart attack. There are one million people alive in the UK who have survived a heart attack. These figures are without considering statistics related to other critical illness such as cancer and the many other. (Statistics are from the British Heart Foundation in November 2018)
Terminal illness cover provides an advance payment if the insured person is diagnosed with a terminal illness. Terminal illness cover is an early life cover claim, normally during the last 12 months of the insured’s life. Terminal illness cover is not the same as critical illness cover or serious illness cover. The key difference being recovery is not possible.
Income protection provides a specified amount of income in the event the insured is unable to work due to an accident or sickness. It would be prudent for you to consider an income protection policy to cover basic living expenses, such as your mortgage payments and household bills.
Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against the loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk.