Protection ProductsAn overview of the different protection products you can put in place to mitigate financial loss.
Personal and Family Protection Products
Find out how different types of protection policies can help you and your family in your time of need.
The simplest cover to understand. In return for a regular monthly payment, you could receive a lump sum if you pass away during the policy term, which could be up to age 84. Life insurance is often used to clear your mortgage and other debts. It can also provide a sum of money to replace the lost household income and help to support your loved ones.
Critical Illness Cover
This type of product pays out a lump sum if you are diagnosed with a specified critical illness. Comprehensive policies have a minimum number of illnesses covered, as specified by the Association of British Insurers and some providers add in some useful additional conditions and features. Accounting for the majority of all claims are cancer, heart attack and stroke and all policies cover these three life altering conditions. It is important to look into the details of your critical illness policy to know exactly what conditions you are covered for – not all policies are the same and I generally favour policies that have a comprehensive list of conditions covered.
Children's Critical Illness Cover
A useful addition to your own critical illness policy, some providers also offer cover for your children by adding a small extra premium.
An income protection policy will pay out a portion of your income if you are unable to work due to illness or injury. This is generally a long-term policy, i.e. it can pay an income all the way up to your retirement if you have a lifelong illness, or you can have a term limited policy that pays out for a period of one, two or five years at any one time. The standard full working life policy is the best quality cover, but the term limited ones can be a more cost friendly option.
Family Income Benefit
Rather than paying a lump sum, a family income benefit can pay you an income for the remainder of the policy term, which can be up to age 84. It is a useful way to give some regular income to your household budget and can be taken out on life or critical illness terms. I generally favour lump sum cover, but family income benefit can be a useful option for the cost conscious, or a useful addition to your protection plan mix.
Whole of Life Insurance
As the name implies, a whole of life policy provides cover for your whole life, rather than limited to a fixed term. It is often used for inheritance tax planning to help provide funds to meet this potential tax charge on your estate to help protect your family’s inheritance, but can also be used for any other lump sum protection need. It is generally more expensive than a term limited cover, but if contributions are maintained, the payout is certain.
Business Protection Products
Find out how to protect the profits, continued operations and control of your business.
Key Person Cover
This type of protection can help mitigate the impact of losing a skilled employee that is essential to the performance of the business. Depending on the type of policy selected, it can provide an income if they are unable to work through sickness or injury, or a lump sum if they die or are diagnosed with a serious illness. It is essentially a life, critical illness or an income protection policy on a key individual to protect the business operations and profits.
Shareholder and Partnership Protection
This type of cover can help business owners keep control of their company if one of them dies (or diagnosed with a critical illness if selected). It can also ensure that the deceased’s family are treated fairly and avoids any fire sale of business shares or assets.
Relevant Life Cover
Relevant life cover can provide death in service benefits to employees outside of a group life scheme. It’s useful for high earning employees who do not want death in service benefits to form part of their pension lifetime allowance, or for smaller businesses that do not have enough eligible employees for a group scheme. It is also more tax efficient as the premiums are treated as an allowable business expense.
This type of cover allows employers to offer cost effective life cover, critical illness cover and income protection cover to their employees at scale. It can form a key part of your overall benefits package to help look after, attract and retain employees.
Your Protection Plan
Discover how to find the right cover, with the best provider, at an affordable price.