To say we are “Big” on protection, is a bit of an understatement!
We are all passionate about making sure that your home and family are looked after should the unthinkable happen. This can take many forms, and therefore could be confusing, which is why we recommend a face to face chat with one of our advisers to talk you through the options.
Of course, we will always recommend a “fully protected mortgage” when we get together, to show you what we feel you should have in place, but will also be happy to fit as much cover as possible within a budget. We feel that this is the most important area of your finances, even though it is normally thought of as a “necessary evil” that needs to be arranged when moving home or re-mortgaging by many clients.
We ask the question, “what happens if?” e.g. one of you dies, contracts a serious illness and/or cannot work. Then we aim to give you an overview of the types of cover out there to plug any gaps, as well as recommend a suitable and affordable package. You may already have some pre-conceptions about certain types of cover, but we can usually surprise people with hard facts and being Independent we will only use top UK providers, whose claims history is proven.
Types of cover available:
Life cover – single or joint lives and can be decreasing term(or, DTA, to match a repayment mortgage) or can be level term(LTA, interest only). This cover will only pay out the sum assured Tax Free on the death of the applicant, however, some plans do have a “Terminal illness” clause, which may accelerate payment in that event. This cover can also be used to provide extra cover for family protection, for instance, where a client has no Death in Service benefits, or for the self-employed. Please note: This type of cover may need to be written in Trust, to make certain the pay-out goes to the intended recipient, and we can provide advice at the time.
Critical Illness cover – Can be combined with the above or as stand alone critical illness cover which pays out if you are diagnosed with, or undergo surgery for, a range of serious critical illnesses and a number of more common and sometimes less severe conditions. Some now also include valuable cover for your children as standard, as well as part pay-outs for the less severe conditions. The range of cover can vary from company to company, and again this is where we will advise you on the most suitable available.
Family Income Benefit – similar to above, but is used to provide a Tax Free income in the event of death/Critical illness, rather than a Tax Free lump sum.
Permanent Health Insurance (PHI) – Simply to provide support for you and your family should an illness or injury stop you from working. Usually paid TAX FREE, and there are a myriad of options for deferment period(how long before it will pay-out) to term, amount insured, guaranteed premiums, duration of payment etc.
Accident Sickness and Unemployment (ASU) – Rarely used and mainly by lenders for direct applications. Designed to provide a short term income (usually 12 months) in the event of, you guessed it, accident sickness or unemployment.