Personal protection advice you can trust
No one likes to think about being burgled, suffering a flood or fire and it’s even easier to put the prospect of accidents, serious illness and death out of your mind but the fact is that you need to make sure that you’ve protected yourself and your family and that means reviewing your insurance on a regular basis.
This is particularly important as your circumstances change – when you get married, have children, move house, buy a new car or start a business. Your needs will also develop as you grow older.
As well ensuring that a policy covers you adequately, you’ll also need to think about your tax liability. It’s important to make sure that your protection plans are up to date and are tax efficient, taking into account issues such as Inheritance Tax. Even people who have had protection can still make costly mistakes. For instance, you need to check that your policy is written into trust to ensure that any money paid out goes to the person that you’re intending it to go to. This should avoid the time and expense of going through probate.
There are several types of Personal Protection that you should consider.
Fixed Term Life Insurance
This product provides you with a fixed lump sum payment should you die within a specified period.
Mortgage Life Insurance
Here you’ll receive a lump sum payment should you die within a specified period. The amount that you’re covered for will be reduced in line with the balance of your repayment mortgage.
Critical Illness Cover
Critical Illness Cover gives you a tax-free lump sum payment or monthly benefit if you’re diagnosed with a specified critical illness. It can be included with Family Income Benefit, Fixed Term Life Insurance and Mortgage Life Insurance policies.
With Income Protection you’ll receive a tax free monthly benefit of a proportion of your pre-tax or gross income, including bonuses and commission, if you’re unable to earn due to an illness or injury. You can choose whether payments continue up to retirement age or stop after a specified period.
Private Medical Insurance
Private Health Insurance is specifically designed to give access to specialist diagnosis and private medical treatment. You’ll have expert treatment that isn’t limited to cost and is provided by the healthcare organisation that you choose.
Family Income Benefit
This product pays a tax free monthly benefit to your chosen beneficiary should you die within a specified period. Family income benefit is designed to replace the income of a family member who dies so that the rest of the family still has enough money for the things it needs such as school fees.
Whole of Life
“Whole of Life” insurance pays out regardless of how old you are when you die. Unlike term insurance, which only pays out within a specified period, whole of life guarantees a lump sum is paid on death, even if you live to be over 100 years old. Whole of Life cover is commonly used as protection against Inheritance Tax liabilities
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