think you don’t need it?

i challenge you to watch one of these videos and not change your mind

Customer Story – Children’s CIC – client facing from LV= on Vimeo.

Personal Protection from Aegon – Suzanne’s story from Aegon UK on Vimeo.

 

Life can have some wonderful surprises for you, but it can also have its low points.

Death, illness, redundancy are not always the things that happen to other people.

No-one wants to think about it, but we all have to.

Taking on a mortgage is a huge financial responsibility and it is sensible to make sure that you, your lifestyle and your family are financially protected as well as possible and luckily there are a number of products available to soften the blows that life can inflict.

It can be a minefield, however with phrases like decreasing term, waiver of premium, income protection and critical illness it’s a complicated subject and not easy to decide what you need or even how much for.

I can guide you through the maze, let you know what’s what and what you need.

To start you off, here’s some of the options.

LIFE ASSURANCE

This gives your family financial protection if you die.

Most people who buy life cover buy just enough to pay off their mortgage if they die.

But is this really enough? For most of us, our mortgage is only one of the many financial commitments we have. Credit cards, personal loans, council tax, childcare costs, food and utility bills are just some of the other regular payments that we have to make. And most of these commitments wouldn’t go away if one of the breadwinners died.

This is where protection insurance can help. You can buy life cover that pays out as a lump sum or a monthly income to cover the bills if you have to make a claim during the term of your plan.

You can even combine both types of payment in one plan to give your family protection that covers the mortgage and provides the income they would need to live in the family home without you.

£6,991 was the average household consumer credit debt in the UK excluding mortgages in September 2016

Source: www.themoneycharity.org.uk, November 2016.

CRITICAL ILLNESS

Critical Illness Cover provides financial protection for you and your family if you are diagnosed with one of a list of defined critical illnesses.

If you were to become seriously ill tomorrow, what impact do you think this would have on you and your family?

What would your priorities be?

For most of us our biggest concern would be surviving the illness and recovering from it. But it can be difficult to focus 100% on getting better if you’re worried about the next big bill that’s going to come through the door. Sadly this is a reality for many families whose lives have been turned upside down by illness. The good news is that more and more people are surviving critical illnesses.

INCOME PROTECTION

Income Protection can provide a monthly income if you become ill with an illness that may not be critical, but is severe enough to stop you from going to work for a long time.

The working world has changed dramatically in recent years. One thing remains constant however, and that’s the fact that most of us need to work to pay the bills and to enjoy all the good things in life like holidays, cars and meals out. But bills don’t stop arriving – even if we are very sick.

If you fall ill or have an accident and are unable to work, the sudden loss of income could be devastating. Even if you don’t earn an income but look after the home all day, it would be very expensive to pay someone to do all the work that you do.

That’s where income protection comes in. It pays out an income if you’re unable to work because of illness or injury.

Ask yourself:

  • What if you don’t have a critical illness, but suffer from long-term sickness or a disability that prevents you from working?
  • How long would your finances last if this happened to you?
  • How long would your employer continue to pay you?
  • How quickly would you have to fall back on state benefits? And would they be enough?

WHO ELSE WOULD YOU RELY ON?

Many people think they could rely on money from their employer, their family or the state but recovering from a serious illness can take a long time.

How long would this money last?

Sick pay from your employer might help, but might only last a few weeks. The state provides Statutory Sick Pay and Employment and Support Allowance, but is this enough?

Have a look at the table below to see how much you could get. You can find out what other benefits you are entitled to at www.entitledto.co.uk Surprisingly few of us have taken out protection. According to research, over 60% of UK adults aged 18+ do not have life insurance. And 85% have no critical illness cover.

Isn’t it time you considered your own protection plan?

 

*Please note that you should never cancel an existing policy prior to taking out a new one without fully investigating the generic and individual elements that are covered.

Payment Protection Insurance is optional.  There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.