Protection
This guide is supplied for general information only. You should
seek specific advice for your individual circumstances before acting on
any of the information outlined below.
Looking after your family and ensuring that there are adequate funds to cope
with the unexpected will probably form the cornerstone of your financial
planning. Illness, job loss or the death of a wage earner can plunge families
into real financial hardship. Taking a little time to assess your risks and work
out how much money you would need to cover debts and provide your family with an
income for the future, could be the most sensible thing you do today. With all
the insurance products now available, a complete programme of protection could
be built to meet your needs and it could be adaptable to cater for future
changes in your circumstances.
There is an art in matching your financial requirements to
your financial liabilities, and, as in most cases, you will
need the help of a professional in selecting the correct policy for your
personal situation. There are a number of different types of insurance
policy designed to protect you from financial strain.
An example of some protection products is shown below:-
Term
This is the simplest form of insurance
which pays out a lump sum if you die during the term of the policy.
It can be broken down into various sub categories i.e. - Level Term,
Reducing Term, Mortgage Protection Term, Family Income Benefit, etc. There
are also premium options such as guaranteed premiums (for the policy term) or
reviewable premiums that are reviewed. You can have policies that increase at
specific rates, remain level, or increase in line with the Retail Price Index or
the Average Earnings Index. Market knowledge can save time and premiums,
particularly where an applicant has a medical history.
Family Income Assurance
This can provide either an income
for your dependants or a lump sum if you should die during the term of the
policy. You should note that the income is only paid for the term remaining on
the policy, so you may need to make additional arrangements to go on providing
an income after the policy expires.
Whole of Life
This type of policy is designed to
pay out at the time you die whenever that should be. As long as you maintain the
policy there is a guarantee that, on your eventual death, the sum assured (level
of life assurance cover) will be paid to your Estate/Beneficiary.
Critical Illness
Critical Illness Insurance covers
an individual for life or for a set term against a number of serious illnesses,
diseases and medical conditions. Please note different providers use different
definitions in relation to Critical Illness Cover.
Private Medical Insurance
Nobody likes the idea of
having to wait in line to see a doctor or consultant and trying to plan your
life around a hospital appointment can sometimes prove very difficult. A
solution chosen by a large number of people is the purchase of Private Medical
Insurance. Many people see the advantage of 'going private' in that it not only
provides the necessary treatment, but also because it introduces more control
over the timing of when the treatment takes place.
For further information, please
contact Equus IFM Ltd