Types of Protection Insurance and why you need them
Protection insurance is vital in ensuring financial resilience, no matter what challenges life throws at you. Everyone’s circumstances are different so it’s important to seek advice from a protection specialist to ensure that your protection package is bespoke to you to ensure that your house, family, income and lifestyle are all protected should the worst happen.
All insurance packages can flexible and tailored to your budget, and any form of insurance is always better than no insurance!
Life Insurance pays out a tax free lump sum to your family in the event of your death. It can help pay off your mortgage so that your family are left with their home instead of the mortgage debts, but it can also help to pay for things such as such as funeral expenses or other financial obligations such as credit cards and loans. It gives you peace of mind that your family are taken care of financially and not burdened with financial hardships during a difficult time.
Income Protection Insurance
If you were unable to work due to illness or injury, how long would your employer pay out for? If you’re self- employed and don’t receive sick pay at all, how long could you manage without your income and how would this impact you and your family?
Income Protection insurance covers you with monthly tax-free payments in the event of you being unable to work due to illness or injury. This is crucial if you and your family rely on your earnings, especially if you’re self-employed or don’t have much in the way of sickness benefits from your employment. It provides a financial safety net and ensures you have an ongoing income stream if you are unable to work due to accident or illness.
Critical Illness Cover
Critical Illness cover provides you wish a tax free lump sum in the event of you being diagnosed with a critical illness such as cancer, heart attack, stroke or multiple sclerosis. It is designed to provide financial support when facing a serious health condition, to enable you to focus on recovery rather than worrying about your finances.
Family Income Benefit
Family Income Benefit pays a regular lump sum to your family in the event of your death- it’s like Income Protection Insurance but for the deceased. Many people take out this type of policy to ensure that their family have the funds to maintain their lifestyle in the event of their death by replacing the lost income of the insured person, and providing ongoing financial support to their family. This type of insurance is often taken out alongside life insurance.
Why is it important to seek advice from a professional?
Everybody’s circumstances are different and it’s important that you have the right level of cover to suit you. It isn’t always as simple as looking for the provider with the cheapest premiums, as the level and type of cover is paramount. Here at The Mortgage Masters, we fully assess your needs before making any recommendations to ensure that you have the right quality of cover for your budget.