Income Protection Insurance
Ask yourself :
- If you were seriously ill and unable to work for a period of two years, how would that impact you and any dependants?
- Would your employer support you, if so for how long?
- how would you pay your bills?
The answer to this question is the reason Louise places Income Protection Insurance right at the top of her priorities for you and your family.
Louise offers a range of products, from a number of insurers, which empowers us, together, to tailor a plan specifically for you, to provide you with a replacement income and enable you to continue to pay your bills in the unhappy event that you meet with an accident or suffer an illness that prevents you from earning your income.
Whether you receive sick-pay from your employer, or you need the benefit and cover to start right from day one, she will match a plan to your needs – and more importantly, your budget.
Income Protection provides a replacement income if you cannot work due to an accident, injury, or illness. For example, if you were involved in a car accident, had fallen, suffered from anxiety and depression, or were seriously ill with cancer, suffered a stroke or heart attack or other illness.
There are two types of cover:
Full Term – this normally pays out a replacement income until you retire, die or return to work
Short term – provides a replacement income for one, two or five years per claim – this type of cover is usually cheaper than the Full Term cover.
Do you need Income Protection Insurance? Much depends on how what sick pay benefit you receive from your employer. Those of you who are self employed receive no sick pay.
Most people would agree that state benefits for sick pay do not pay sufficient to enable payments of your bills let alone anything else. Consider how you would feel being unable to pay all of the essential payments that you would need to make – rent/mortgage, council tax, heat/ light, food. And what of other less essential costs such as mobile phone, running a car, continuing to pay your life insurance and pension contributions and other family costs.
Many insurers are only interested in “good risk”, others have their own definition of incapacity. Some insurers say that if you can do ANY job, you are not eligible to receive the benefit.
Louise Daniels Mortgage Service help you to navigate these potential pit-falls and make sure that you have a plan that offers real protection for you and your family when you need it most; when you actually have to make a claim.
Life Assurance Cover
How would you want to leave your family financially?
Would you want the mortgage to be repaid?
Would a lump sum be needed?
Would you want your income replaced?
What impact your passing would have on your family financially?
Could your dependants maintain their current lifestyle?
Could commitments be paid by just one income?
What assets would have to sold to fund commitments?
Life insurance is pretty self-explanatory, it pays out a cash lump sum to your loved ones in the event that you pass away during the term of the policy. Life insurance provides peace of mind to the ones that matter the most to you. Life insurance cover is also designed to provide your family with financial stability during a difficult time for them.
When set-up correctly the benefit payment is paid out tax-free to your beneficiaries to use however they see fit. It could be used to pay off a mortgage, clear any outstanding finance or to use as an ongoing income to help with everyday living costs.
Most people consider obtaining life insurance cover at key points during their life such as getting married, buying a home or having a child. Also if you’re the primary breadwinner of the household, it’s definitely something you should consider putting in place.
When considering whether you need this form of protection, ask yourself how your loved ones would cope should the worst happen to you? From a financial standpoint would they be able to continue life as normal? Or would they struggle significantly?
Common sense prevailing, most individuals see life insurance as a very important form of protection that they should have in place, especially if they or the family have any significant outstanding debts, such as a mortgage.
Louise understands that it’s not the most pleasing thought if something should happen to you. But in the event that it does, you want to be prepared in the best possible way. You don’t want your family facing financial hardship when you are no longer around to care for them. Louise knows that you want to remove any financial pressure from your loved ones so they can focus on dealing with your loss and getting back up on their feet.
Critical Illness Cover
Sometimes referred to as Cancer Cover
If you were critically ill and unable to work for the long term, how that would impact you and any dependants?
Would your family home be at risk?
Does your family have a history of any of the following:
- Heart Attack / Stroke
- Multiple sclerosis
Critical Illness policy pays you a cash lump sum tax-free amount if you are diagnosed with one of the various Critical Illnesses covered under your policy. You can choose a policy that also provides cover for your Children should they be diagnosed with a Critical Illness.
Critical illness can prove to be a valuable lifeline in the event that you fall critically ill and it can protect you in a major health crisis. You may choose how you use the pay-out from a critical illness policy, whether you repay a mortgage, keep up with bills or adapt your home to make life easier during recovery or modify your home to assist with a new disability. It can even be put towards things like care costs, medical bills and even travel abroad for treatment.
Unfortunately, no one can ever be sure what life has in store for them and a serious illness could strike at any time. Statistics show the risk of many critical illnesses is rising in the UK, even among younger people of working age. So if you’re worried about falling critically ill, this type of cover is worth having.
The benefit of having a Critical Illness policy is less financial worry following diagnosis of a serious illness enabling you to focus on your future, treatment of your illness and recovery rather than the anxiety about how you are going to pay your bills.
The amount of cover you obtain may depend on your budget, how much you wish to pay each month, because Critical Illness cover can be expensive. Louise can guide you to help you decide the right level of cover taking into consideration your medical history and that of your family, your age and whether you smoke.
There are a number of options available
Level Term Cover – this provides a fixed amount of money throughout the term of the policy.
Decreasing term Cover – this provides an amount that is reducing throughout the term of the policy. Often taken out in conjunction with a mortgage.
Joint or Single – a joint policy covers two people under one policy, usually this type of policy pays out once which may leave the other person with no cover.
As an alternative we can look to arrange two single policies which provide both parties with independent cover, often with only a marginal cost variation.
Guaranteed or reviewable premiums – Guaranteed premiums are fixed for the duration of the policy, although you can choose to index link the policy in line with inflation. This gives you the option to increase the level of cover if you wish, which will affect the premiums.
Reviewable premiums will mean these are increased each year by the insurer and often result in premiums becoming unaffordable
Whilst you are considering Critical Illness insurance, you may wonder whether you should have Income Protection instead. The Critical Illness cover will pay you a lump sum of money if you are diagnosed with an illness covered by your policy. Income Protection will provide you with an income if you were to suffer any type of illness or injury, that means you are unable to work and this would normally include all the same conditions as a Critical Illness insurance together with many others.
Income Protection insurance offers a comprehensive level of cover providing you with financial protection from illness or injury whether short or long term.
Whilst a Critical Illness policy may be used to settle a mortgage and or make adaptations to your home or pay for treatment however you should consider your household bills will continue to fall due and you will need to find a means of paying those if your illness prevents you from working.
An Income Protection insurance could provide you with a regular income payable each month to ensure that you are able to meet your bills either until you return to work or retire.
Louise will review your options and make an assessment based on your needs and budget.