Many people do not have an emergency fund to fall back on in the event of something unfortunate happening which is beyond their control. If you were unable to work, how long would you be able to continue paying your mortgage and other bills?
Protection policies are designed to ensure a personal catastrophe (death, loss of income etc) doesn’t cause a financial crisis.
The most common types of protection plans are listed below with a high level description:
Most commonly taken in connection with a mortgage to ensure in the event of death of a borrower, the mortgage can be repaid. This is especially important where the household income is reliant upon one person’s income, and the death of that person would result financial hardship and potentially the forced sale of the family home.
These policies provide an income should you be unable to work due to sickness or accident. They can be constructed to compliment your employers sick pay arrangements (if any) to ensure you are only paying for cover you need.
Critical Illness Cover
Again most commonly taken in connection with mortgage borrowing and will pay out upon suffering a critical illness (as defined by the product key features).
Family Income Benefit
A form of life cover, but with the benefit being paid to the stated beneficiaries as a monthly payment (rather than lump sum) until the end of the policy term, which is often set to when the youngest child is 21.
As with all of the policies mentioned in this section, there are a variety of options available to tailor the cover to your needs. Whilst ideally you should have protection arrangements in place to guard against death, critical illness, sickness or accident, It is important to note that having some cover is better than none. So if cost is an issue, we can work with you to put reduced protection arrangements in place to focus on your greatest concerns, and to fit within your budget.