Family Protection Insurance
We cannot know what lies in store for us and our families. We can make sure we plan for the unexpected, and protect what is most important to us with the right policies, at the right level, at the right premiums.
Your income provides for all yours and your family’s needs. Without an income you and your family would almost certainly lose the lifestyle you now enjoy along with all that you have built up, including future plans. It is so important to protect your income.
Protecting Your Income
Nobody plans to be ill and off work for a long period of time, but it is wise to plan for the possibility that it could happen. The best cover for you will protect your income so that essential bills are met and life goes on as smoothly as possible while you concentrate on your recovery.
What is Income Protection Insurance?
Income Protection provides a monthly, tax-free income to help meet your financial commitments if you are unable to work through illness, an accident, or disability. The payments are a proportion of your gross monthly income.
Why do I need Income Protection Insurance?
Because we do not know what is around the next corner. If, for example, illness means you have to take long-term sick leave, the sick pay you receive from your employer will usually cease after six months. The question then is how to cover your monthly outgoings; using your savings perhaps, or relying on your partner or family to help keep things going. It is a stressful situation at an already difficult time. Income Protection relieves financial anxieties, leaving you free to concentrate on making a full recovery.
How much Income Protection will I need?
It is up to you. You should check what employee benefits cover your income since this may have a bearing on what type of Income Protection policy you need. Premier Choice will help you to make an informed choice.
What will Income Protection cost?
Again, it depends on the level of cover you decide you need. It also varies according to the term of the policy, your health at the time you take out the policy, your age, occupation and whether you smoke. The time between your illness beginning and the payments starting is another variable.
What is a Deferred Period?
The deferred period is the time between your claim and payment of the first benefit. Many people receive sick pay from their employer for a time and choose to defer payments from Income Protection until sick pay from their employer stops. The longer the deferred period, the lower the premium you pay.
I get state support. Why do I need Income Protection?
It is unlikely that support provided by the state when you are not working will be equivalent to your salary. Employment and Support Allowance is currently set at £56.50 to £106.50 per week, depending on your circumstances and how long you have been off work. You can find out find how the benefit is calculated here. The question is this: could you and your family survive on this much?
Will I be taxed on money I receive from my Income Protection cover?
No. This is tax-free income.
How long can I claim on the policy?
Until you get better, or until the policy term comes to an end.
Does Income Protection cover me for redundancy?
No. It only covers long periods of illness, time off work due to an accident, illness, or disability.
What happens if my income changes?
Tell us. We will arrange an increase or decrease in your cover to reflect your new circumstances.
I’m self-employed. Can I get Income Protection?
Yes. It’s sensible to consider taking out a policy as a fail-safe if you are unwell and unable to work.
Is Income Protection available to a partner who stays at home?
Yes, though there is usually a restriction on the amount of benefit he or she can receive.
What happens if I become unemployed or decide to take a career break?
It varies from one insurer to another. Some insurers offer a reduced rate while you are not working; others may offer a ‘non-working option’, which suspends payments and cover. If you are planning a career break or think you may be out of work soon, tell us; we can help you find the right cover for your needs.
Is Income Protection the same as Payment Protection Insurance (PPI)?
No. They are very different. PPI is tied to one debt; payments made through PPI go straight to the lender. Income Protection is much more comprehensive and dependable.
How can Premier Choice help me choose an Income Protection policy?
We bring years of expertise and experience in Income Protection. As an independent, we give you completely impartial advice on the policies available from all the major insurers. We will make sure the cover you receive is right for your personal needs, and at the best premiums on the market.
Protecting Your Mortgage
For most people the largest financial commitment is their mortgage.
Owning your own home is one of life’s great pleasures. Safeguarding house and home, and all who live in it, is bound to be one of your main priorities. That means protecting your mortgage payments too, so if the worst happens and your circumstances change, those payments can continue to be made or the mortgage loan repaid.
Who needs Mortgage Protection?
Quite simply, anyone who is a homeowner with a mortgage loan and who needs to continue repayments no matter what.
Why do I need to protect my mortgage?
Most people buy their home with the help of a loan from a mortgage company or a bank. The loan (with interest) must be repaid and is often done on a regular monthly basis. It is essential that the payments can be met even when the home owner is not able to work. You could lose your home if you are unable to keep up the repayment until the end of the mortgage period.
What types of Mortgage Protection are there?
There are two types of Mortgage Protection.
– Mortgage Term assurance. This is a longer-term policy, usually for the duration of a capital and interest repayment mortgage until the final repayment date. It pays out the remainder of your mortgage in the event of your death.
– Level or increasing term assurance. This is a long term policy usually for the duration of an interest only mortgage. The sum assured pays the mortgage capital in the event of your death. It works alongside another financial arrangement which is in place to pay the mortgage at the end of the mortgage period.
Why not just get Mortgage Protection from my bank?
This is not necessarily the best option as most Banks do not employ independent insurance advisers, so they are not able to locate the best policy for you across the market. You may only be able to choose from the range of policies offered by your bank and so any advice provided may not be impartial. You are not guaranteed the best possible premium or the best possible policy for your needs.
Is Mortgage Protection the same as Income Protection?
No. They cover different eventualities and are two distinct policies. It is advisable to have both; find out more about Income Protection here.
How much Mortgage Protection cover will I need?
It’s up to you. Premier Choice consultants will help you make an informed decision.
Can I cash in the policy at any time?
No. There is no cash value attached to the policy. It will only pay out when you make a claim.
How can Premier Choice help me?
By providing impartial, independent and specialist advice. We are here to make sure you find the best policy for you and your family budget.
Sometimes, we have to think the unthinkable, and ask ourselves the right questions. What if I am not around anymore? Is my family safe? How will they fare without my income? Are they free from the burden of debt and worry? And how can I make sure life goes on if I am no longer there?
Nobody wants to dwell on these questions for longer than they have to. All you need to do is take enough time and care to make sure there is a policy in place to provide for your loved ones if the worst happens. Then you and your family can get on with doing the thing you enjoy most: living your life.
What is Life Insurance?
Life Insurance protects your family and makes sure they are financially secure in the event of your death.
Who needs Life Insurance?
Anyone with dependants and financial commitments.
Why would I need a Life Insurance policy?
If we knew what was going to happen 5, 10 or 20 years from now, we probably wouldn’t be talking about Life Insurance. Since we don’t, the only way to deal with the unexpected is to plan for it. Life Insurance is there to make sure your loved ones and family members who depend on your income are protected if anything happens to you, lifting the burden of financial strain at a difficult time.
What does Life Insurance cost?
Much depends on you and your needs. Premiums are calculated according to the type of life product, the level of cover you need, and how long the policy will last. It also takes into account your medical history, age, gender, and whether or not you smoke.
How much Life Insurance cover do I need?
Again, this depends on your circumstances. You will want to think about your debts, such as university fees, loans and credit cards. You will also want to work out how much your family would need to support themselves without your income. Our consultants will help you calculate this.
What are the different types of Life Insurance?
There are six main types of Life Insurance. Each is designed to meet a particular need when death occurs.
- Term Assurance (level) is designed to pay out a fixed level of benefit on death (or terminal illness) during the selected term of the policy. Its value may be eroded by inflation.
- Increasing Term Assurance pays out an increasing level of benefit during the selected term of the policy. This increase can be aligned to a set percentage, or to a recognised index such as the Retail Price Index (RPI).It is designed to maintain the value of the benefit at or above inflation.
- Mortgage Protection Insurance reflects the reducing capital value of a repayment mortgage. The premium usually remains the same, but a claim in later years will be less that the initial sum assured.
- Family Income Benefit pays a regular income rather than a lump sum when a successful claim is made. The income will be paid only for the remaining period of the policy term, which makes it what’s known as a reducing benefits policy. Premiums are normally lower than the first three on this list.
- Whole of Life This policy remains in place for the full life of the insured person and will pay out the selected benefit whenever death occurs. The policy can be level or increasing. It is more expensive than the others, but guarantees to pay out so long as premiums are kept up to date.
- Guaranteed 50-Plus Life plan As its name suggests, this is designed for people who are 50 years old and over, and guarantees that all applicants will be accepted, irrespective of their health. There is an initial waiting period of one or two years before a claim can be made on the policy
My employer provides Life Insurance. Do I still need an individual policy?
Possibly; it is worth thinking about. You should check the terms of the existing policy provided by your employer. There are a few things to think about: would the policy give your family sufficient financial security if they had to cope without your income? It is also worth bearing in mind that if your employment ceases, so will your insurance – worth remembering in today’s fluid job market.
What if I have a pre-existing condition?
Tell us. It is important. We will need to take any pre-existing health conditions into account when your Life Insurance plan is underwritten.
Is critical illness cover included?
No. Most people take out a policy to cover them for critical illness along with Life Insurance.
What is a waiver of premium?
For an upfront charge, this is an option where the insurer pays your premiums if you are unable to, through illness or disability. When you are well enough to return to work the waiver of premium stops. There is usually a waiting period of 4 to 24 weeks before your insurer takes over the payment.
Why Premier Choice for Life Insurance?
Because we are long established. Our independent status and long- standing relationships with all major insurers means we can offer impartial advice on a wide range of insurance products to help find the best possible premiums and the perfect policy, tailored to your needs.
A diagnosis of critical illness is not something anybody wants to imagine facing. Even though we are fortunate enough to be better placed to survive some diseases than ever before, critical illness is a profoundly distressing and disruptive event.
It is possible to help ease the stress such a diagnosis can cause by taking out cover that provides finances while you undergo treatment and start on the road to recovery.
What is Critical Illness Insurance?
It is there to provide protection if you are diagnosed with a critical illness or need to undergo a major medical procedure. The cover is for specified illnesses and procedures, and provides you with a one-off payment in the event of a diagnosis, or surgery and treatment.
Who needs a Critical Illness policy?
Unfortunately, critical illness can strike anyone. That is why a Critical Illness policy is recommended to everyone, including single people, and especially those with a family or partner who depend on their income.
Can I have a joint policy to cover myself and my spouse?
I have Life Insurance. Why would I take out Critical Illness cover too?
According to the Office for National Statistics (ONS), people of working age are four times more likely to get a critical illness than they are to die. While advances in care and groundbreaking new treatments improve our chances of surviving a critical illness, they come at a cost – and many people simply can’t afford it. This is why Critical Illness cover can make a life-changing difference to you and your family. Many people choose to take out a Critical Illness policy on top of their Life Insurance cover. Bear in mind that Life cover pays out only on death or terminal illness.
I have Health Insurance. Why would I need Critical Illness cover too?
When you are ill and receive treatment or surgery, your Health insurance policy pays the cost directly to the hospital and other medical professionals who provide your care. A Critical Illness policy pays you. Health Insurance policies can have benefit limits which can be quickly exhausted, leaving you with costs that you need to cover personally. Critical Illness cover also provides support for daily living expenses, covering debts, and loss of income. Health Insurance doesn’t.
What Critical Illnesses are covered?
The most common illnesses are cancer, stroke and heart attack. Most Critical Illness policies cover an average of 39 diseases and conditions. Your policy could cover you for more than this, depending on the level of cover you choose. It is best to talk through the different policy options with an independent expert; we have experienced, impartial consultants who can help you find the right policy for you.
Does Critical Illness cover all cancers?
No. Insurers have different rules on which cancers they cover, and which ones they don’t. We can help you understand the distinctions and fine print on your chosen policy.
Can I use the benefit of Critical Illness cover however I want?
Yes, it is up to you to use any benefit you receive after making a claim as you wish. In many cases, people use the money to fund further treatment, using some of the benefit to meet financial commitments while they take the time to make a full recovery before returning to work.
How is a claim paid?
There are two ways: as a lump sum, based on the amount insured; or it can be taken as a Family Income benefit, which is paid out as regular monthly income for the remaining length of the contract period.
Can I claim for more than one covered Critical Illness?
No. Once you claim on a covered Critical Illness policy, that policy comes to an end. There is a reinstatement option, but it is important to bear in mind that you need to select it at the time you take out the policy.
What is the waiting period?
This is usually 14 to 28 days, and is the period of time that the insured must survive after diagnosis of a Critical Illness.
Why choose Premier Choice?
We are known for our award-winning, independent advice and guidance on a wide range of policies from all the major insurers. Our expert and experienced consultants are here to help you to plan for the unexpected. Premier Choice has long-standing relationships and a solid reputation within the industry, helping us to help you receive the best possible premiums and the best-quality cover.
Contact Us Today
Want to know more? Call free on 0800 970 1618 or click on the link below to enquire online. Speak to a member of our team to see how we can tailor a package to suit your specific needs and receive a FREE no obligation quote.