This is a subject that I talk about with every client without fail. It is not because I enjoy hearing my own voice, but it is because I genuinely care about my clients and their families and the tragic effect of not having a mortgage properly protected can have on them. I often hear “Oh, it’s OK, we will sort it out later”...guess what?
Later very rarely happens as once the mortgage is in place ‘more important things’ take over! The number of times that I sit down with clients to review their mortgage 2, 3 or 5 years after they “sorted it out later” and absolutely nothing has been done.
Well, this blog post is just a gentle reminder of what the different protection types are and how they can protect you and your family.
There are various types of Life Insurance offering different benefits. Having the right one for your unique circumstances is vital! During the upheaval following the death of a loved one, Life Insurance offers a financial safety net for the family. Your beneficiaries will be left with a lump sum that will ensure immediate security in the event of your death.
CRITICAL ILLNESS COVER
Diagnosis of a serious illness will have an immediate and immense impact on your life. Your standard of living can change drastically and your income can reduce or even disappear completely. Critical Illness Cover will provide a lump sum to give financial protection if you suffer from a specified serious illness. Policies all vary from provider to provider, so having professional advice when setting up a policy is crucial.
FAMILY INCOME BENEFIT
Losing an income in the event of death can and invariably will have a dramatic effect on both the lifestyle and future wellbeing of your family and loved ones. Family Income Benefit will provide an ongoing financial support to your beneficiaries allowing you the knowledge that their futures are well catered for. Again, it is so important to ensure that you receive professional advice when arranging this type of policy.
Suddenly finding yourself without an income can have a major impact on you and your family. If you are employed, your employer will usually support you for a while, but when that support ceases you are left with just state benefits. If your employer only offers Statutory Sick Pay, then that is just £94.25 a week for a maximum of 28 weeks. It is highly unlikely that this will even meet the basic bills let alone anything else. This is where Income Protection needs to be considered.
When we review your protection needs, we work to a realistic budget that YOU set at the outset and structure a package that will protect you and your family to ensure a financially secure future.