Protection

What is personal and family protection insurance and why is it important?

If you have a mortgage, people who depend on your income, or you want to protect your lifestyle in the event of an accident or illness protection
insurance could help you and your family avoid a financial disaster.

Life and protection insurance is the best way to secure your financial future against the risk of an unexpected loss of income. Having this cover in place can also help you to deal with any financial difficulties that may arise, such as not being able to keep up with your mortgage repayments.

Nobody likes to imagine the worst happening, but sometimes the difficult questions need to be considered. If you were to die, would your loved ones be able to maintain their current lifestyle without your income? If not, then a lump sum life assurance payment could be the answer, helping your family to continue living in the way they’re accustomed to at a very difficult time.

If you or your family were to come up against a situation that meant you would lose your regular income, a protection policy could help you to:

• Pay off your mortgage or continue making Mortgage repayments
• Maintain you or your family’s lifestyle
• Pay for replacement childcare
• Cover school or university fees
• Pay for specialist nursing support

You may already have life and protection insurance in place, but it’s always worth reviewing your policies to ensure the type and amount of cover provided still matches your personal
circumstances. For example, you may have moved home or had children since you originally took out the policies.

What else do you need to know?

It’s not just the type of protection insurance that’s important.

You’ll want to know the likely cost, whether you need a trust document and how to make sure your cover stays appropriate for your circumstances.

What cover will you need and how much will it cost?

This will depend on your own personal circumstances, but we can quickly help you calculate an appropriate level of cover by considering things like:

• Your mortgage and/or any other outstanding loans
• Your current income and your household
• Any likely childcare needs if you or your partner were to die or suffer serious illness or injury

Clearly, the higher the level of cover you decide you need, the more it will cost.

Your age, medical history and occupation are among the other factors that will have
an impact on cost. However, most policies are extremely good value for money, and many people are surprised at how affordable putting cover in place can be.

Keeping your cover up-to-date

You should always review your level of protection insurance whenever there are
significant changes in your life. Getting married or moving in with a partner, buying a home, having children or changing your job can all have an impact on your financial obligations. Even if your circumstances don’t change significantly, it can be worth reviewing your arrangements to see if you can find a more suitable policy.

Having said that, it’s important to ensure the cover of any new policy meets your needs, and that you’re aware of any benefits you may lose compared to your existing policy.