Life is complicated enough when you are fit, well and have a steady income coming in. Nobody needs the added financial, practical and emotional problems that a death, a critical illness or losing your job can bring.
But sometimes, without warning, these things happen. Protection insurance cannot stop them. What it can do is make dealing with the financial consequences a great deal easier.
What protection options are there?
- Life cover — provides for your family if you die or become terminally ill.
- Critical illness cover — could pay a lump sum on diagnosis of a defined critical illness such as cancer, heart attack or stroke.
- Income protection — provides an income once any sick pay from work stops, if you are off through accident or illness.
In every case, any claim must be in line with the conditions of the policy. Definitions vary considerably between insurers, which is precisely where advice earns its keep.
Is protection insurance expensive?
Not necessarily and usually less than people assume. To give a sense of scale, for a thirty-year-old in good health taking cover over twenty-five years, a premium of around £10 a month might have secured roughly £250,000 of life cover, or around £30,000 of critical illness cover, or around £1,000 a month of sick pay starting after three months off work.
What any of that costs you depends on your age, your health, whether you smoke and the level of cover you choose. The figures above are illustration, not a quote.
Many of us already insure our homes, our pets and even our mobile phones. So why not insure ourselves?
Extra protection benefits people rarely notice
Many insurers include additional benefits free, or for a small extra cost:
- A face-to-face second medical opinion
- Children’s cover
- Hospitalisation benefit
- Bereavement counselling
- Complementary therapies
- Practical help at home
These rarely appear on a comparison site ranking and they are frequently the part a family values most when a claim is actually made.
Our view on protection
We firmly believe you should prioritise your outgoings so that you and your family are protected if the worst happens. Get in touch for a quote, or simply to see whether you could get better and more comprehensive cover for the same money elsewhere. There is no obligation either way.
Want to talk this through?
A free introductory call with an adviser. No obligation afterwards.
This article is for general information only. It is not personal advice and it is not a recommendation. The value of investments and the income from them can fall as well as rise and you may get back less than you invested. Past performance is not a reliable indicator of future results. Tax treatment depends on individual circumstances and may change. Fernleigh Wearden & Company Ltd is authorised and regulated by the Financial Conduct Authority, firm reference number 929372.
