It is important to protect your family against the hardships that death or serious illness can bring. Protection can be tailored to meet your individual circumstances and concerns, and is often not as expensive as you would imagine. As independent financial advisers we can select protection products from all providers in the UK market place, and can advise you on how to arrange the policy so that it is most tax efficient. There three main types of policy that we advise on are:

Life Cover. Life cover is used to provide a cash lump sum on death, to pay off a mortgage or other loan. It can also be used to provide a lump sum for your family on your death so that they can continue to live the lifestyle that they have become accustomed to.  Businesses can use life cover to ‘buy out’ other director’s shares on death, or to protect the business against the death of key personnel. Policies can be taken out on a single or joint basis, and cover can be arranged on a level or decreasing basis. A level basis is most suitable to cover an interest only mortgage or to provide family protection. A decreasing basis is most suitable to protect a repayment mortgage. You can cut the price of life cover by writing the cover under a pension policy, and obtaining tax relief.

 

Income Protection. Income Protection is used to provide a replacement income if you cannot work due to illness. It can be used to protect mortgage payments, or provide an income for your family throughout your illness. Once you become ill, payments start after an initial deferral period and continue until you recover, or until the end of the policy term,  whichever is the soonest. As long as you keep paying your premiums, the life company cannot cancel the policy, no matter how many times you claim.

 

Critical Illness Cover. Critical illness cover will provide a cash lump sum when you are diagnosed with a specified critical illness such as cancer or a stroke.  The money is paid out on diagnosis, and is not dependant on whether or not you recover. Like life cover, policies can be taken out on a single or joint life basis, and the cover can be level or decreasing.