Protection Insurance – Life Cover, Critical Illness & Income Protection

Protection Insurance – Life Cover, Critical Illness & Income Protection

Introduction

Your mortgage may be protected, but are you? If you were to die, suffer a serious illness, or be unable to work, could your household continue to meet the mortgage payments? Protection insurance is one of the most important – and most overlooked – parts of financial planning, and it is something we take very seriously.

Life Insurance

Life insurance pays out a lump sum or regular income if you die during the policy term. For most homeowners, a decreasing term policy (where the payout reduces in line with the outstanding mortgage) is the most cost-effective way to protect the mortgage. However, level term or whole-of-life policies may be more appropriate depending on your circumstances. We will assess your needs and recommend the right type and amount of cover.

Critical Illness Cover

Critical illness cover pays out a tax-free lump sum if you are diagnosed with one of a specified list of serious conditions -- typically including cancer, heart attack, and stroke. The money can be used however you choose: to pay off the mortgage, adapt your home, or simply provide f inancial breathing room during recovery. We compare policies from leading insurers to ensure you get the broadest cover at the best price.

Income Protection

Income protection replaces a proportion of your salary if you are unable to work due to illness or injury. Unlike critical illness cover, income protection is not limited to a specific list of conditions -- it pays out for any illness or injury that prevents you from working. This is particularly important for self-employed people and contractors who do not have the safety net of employer sick pay.

Writing Policies in Trust

Writing a life insurance or critical illness policy in trust means that, in the event of a claim, the payout falls outside your estate and is not subject to inheritance tax. It also speeds up the payment process significantly. We can set up a trust for you at no extra cost when arranging your policy -- a small step that can make a significant difference to your beneficiaries.

A 10-minute conversation could ensure your family is financially protected no matter what happens. Get in touch for a free, no-obligation protection review -- we will assess your existing cover, identify any gaps, and recommend the most cost-effective solutions.

The levels and bases of taxation, and reliefs from taxation, can change at any time. Tax treatment depends on the individual circumstances of each client and may be subject to change in future. You should discuss your specific situation with a qualified tax adviser.