PR & Communications
Death, critical illness and lost earnings don’t exactly feature highly for the most pleasant topics of conversation and it’s unsurprising that discussions and planning for such things might get stuck on the back burner. However, the coronavirus pandemic brings times of uncertainty unprecedented in a generation and a sobering awareness of the precious and precarious state of life. Perhaps unsurprisingly, the topic of life insurance and income protection has subsequently been thrust in the spotlight.
“An in-depth guide to everything you need to know about Life Insurance, Critical Illness Cover and Income Protection. If you don’t have the time to read, you can always speak to one of our friendly, expert advisers who will help you over the phone.”
Statutory Sick Pay is paid to you by your employer if you are too ill to work, however the payment is very minimal at £95.85 a week and is paid to you for up to 28 weeks. Income protection can cover 70% of your lost income.
A Term Life Insurance policy does not provide a cash sum if you are still alive at the end of the term. Premiums tend to be lower for such policies as the majority will out-live their policy. Term Life Insurance policies are generally taken out by people who do not want to leave any financial burden on their family such as mortgage payments.
Income Protection will cover up to 70% of your monthly income should you fall ill or suffer an injury, providing peace of mind that your bills will be covered and you won’t need to use your savings to get by. There are different levels of cover you can chose to suit your financial needs and budget. The sum paid to you is tax-free.
Setting up a Life Insurance policy is designed to protect loved ones and writing the policy into trust goes a step further in achieving this goal. This enables you to select who would hold the money for your children until they reach a certain age should you die. This will often be a partner, sibling or close friend as they will have a legal responsibility to carry out the wishes of the person creating the trust.
Your Health Insurance policy will help cover the diagnosis, medication and treatment of your condition however, will not cover loss of income. Critical Illness will pay a tax-free lump sum to yourself directly which will help cover costs such as loans, mortgages and bills.
Yes, should you suffer a serious illness Critical Illness cover will pay out a tax-free sum. This can be an add on to your Life Insurance policy or bought separately. Speak to one of our expert advisors to find out which policy would best suit your needs.