Family Protection

Life Cover

There are three main types of life cover. These are quite different and I can advise you on which type of life cover you need to give you the most appropriate protection.

The types are:

• Decreasing Life Cover

This is used to protect your dependants from the debt of mortgages and loans. The premium remains the same throughout the term  but the cover reduces as the mortgage or loan is paid off. These are a very cost effective way of limiting your liability but are seen as less cost-effective as the loan or mortgage capital is being paid back. Many people use these policies initially and then terminate then later in the life of the mortgage once the capital left to pay has significantly reduced.

• Level Life Cover

This is a policy that covers you for the same amount for the entire term of the policy, its normally used for short term needs.

• Increasing Life Cover

This is where the amount you are covered for increases in line with inflation every year, this is used when you are protecting your income.

Income Protection

An income protection policy pays you a monthly sum each month if you are off work because of sickness or an accident. Most policies can start paying out after you are off work for four weeks or if your sick pay from work has stopped. You can choose the amount to be enough to cover your mortgage or enough to cover 50% of your gross annual earnings.

Critical Illness Cover

Critical illness cover pays out when you are diagnosed with a serious illness. This money can then be used to get the best treatment available, to make any lifestyle changes needed, or to help take away the financial pressure from being off work long term.

The cost of this family protection insurance depends on several factors, such as your age, where you live and your occupation. As a result, the cost you will pay is based on your own circumstances.