Personal Protection
There is an estimated £2.3 trillion shortfall of personal protection in comparison to mortgage debt in the UK*. Everyone has different personal protection needs and it's a matter of fact that these will change as we move through life and move house, change jobs and start a family.
Most people today will look to ensure that they have adequate life insurance to cover loss of family income should a partner die, but not everyone insures against ill health, loss of income or suffering a critical illness such as cancer, stroke, or a heart attack. Having a comprehensive life insurance policy gives you the knowledge that should you meet an untimely end or become seriously ill your family will receive adequate financial compensation to maintain their current standard of living.
Think about your own personal situation for a moment. What would happen to your family if you died or suffered a critical illness ?
Would you/your family be able to pay off the mortgage or continue paying the mortgage repayments? How much income would you lose and would you and your family be able to maintain your current standard of living ? Would your surviving spouse have to downsize? Would your children have to change schools? These are not pleasant thoughts as you sit comfortably with your computer and a mug of tea but these are the questions millions of people leave unanswered until it is too late. What would happen if you were unable to work due to illness or accidental injury? Who would pay the mortgage ? Could you meet all your other monthly commitments and if so for how long?
There are numerous different types of life assurance policy available on the UK market and most of us need some or indeed all of these covers at different stages of our lives.
The most common forms of personal protection are:
- Mortgage protection insurance
- Level term life assurance
- Critical illness insurance
- Income protection
- Family Income Benefit
All these policies can be placed under trust with our help so on claim the sums assured are paid to specified beneficiaries, tax free, as soon as possible. Failure to put policies in trust could result in the proceed s being paid to the insured’s estate and being subject to tax.
To find out more information about personal protection please contact us and we will be happy to help.
* Swiss Re Term Health Watch Report 2008