September 19th, 2017

When is it a good time for Protection Insurance?

Day to day life can be so hectic and complex even when we are healthy and financially secure. Time passes us by so quickly we often overlook mundane things such as ensuring our insurance policies are up to date and remain fit for purpose.

But life can be unpredictable and in an instant our lives change, suddenly we are dealing with the emotional turbulence and financial consequences of redundancy, illness or death. Insurance policies cannot prevent these events from happening but they can ease the financial burden and provide some peace of mind.

Mortgage Payment Protection is a short term insurance plan designed to meet the cost of your monthly mortgage repayments in the event of you being unable to work due to accident, sickness or redundancy. If you are not entitled to much or any work based sick pay, and/ or have little to no savings to fall back on, Mortgage Payment Protection Insurance could be crucial to you keeping a roof over your head if you become incapacitated.

Permanent health insurance provides a monthly income should you be unable to work due to illness or injury. This type of plan can continue to assist you in meeting your financial obligations until you return to work, retire or die and is particularly relevant to those who do not benefit from employer sick pay such as the self-employed or those who would prefer not to claim or are ineligible for state assistance.

Critical illness cover provides a tax free lump sum upon diagnosis of specified illnesses such as heart attack, stroke, multiple sclerosis and cancer and can be used for a purpose which you feel will make life more comfortable for you and your family.

Life cover provides for your family in the event of your death or should you suffer a terminal illness. Policy proceeds are typically used to repay mortgages or other financial obligations.

Relevant Life Polices are ideal if you have your own business and you wish to protect what you have established and worked hard for.  The plan is reminiscent of life cover but aims to provide a tax efficient benefit provided by the employer for the employee. Many company directors who wish to take out their own death in service benefit, without affecting a group scheme for all employees, often consider relevant life as a cheaper alternative.

Insurance policies do not have to be expensive – you just need to get the right cover in place at the right time for you and your family. Insuring against the unexpected to prevent what is important to you being compromised should be a key consideration to ensure you and your loved ones are protected financially.

If you would like to find out more about insurance or would like your existing policies reviewed to ensure you have adequate protection in place please click here to request a call back from one of our advisers.

Written by: Fiona Harris – Financial Planning Consultant, Prosser Knowles Associates Limited

Prosser Knowles Associates Limited is Authorised & Regulated by the Financial Conduct Authority. The value of your investment can go down as well as up and you may not get back the full amount invested. The Financial Conduct Authority does not regulate Taxation and Trusts. The information in this document does not constitute advice or a recommendation for any product and you should not make any decisions on the basis of it.  Your home may be repossessed if you do not keep up repayments on your mortgage.

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