Protection is fundamental. It may not be the most exciting of subjects, but it answers one of our most basic desires – to keep safe all that we hold dear.
And good health is arguably our most precious asset, and with it comes the ability to earn an income. But it is not something we can take for granted.
The sad fact is that we are very likely to be close to someone who gets a serious illness. Take cancer, for instance; according to a report from Cancer Research UK (in 2018), one in two people in the UK will get cancer at some point in their lives.
Life assurance provides a lump sum on death and comes in two basic forms: term assurance and whole of life assurance.
Term assurance provides cover for a specified period of time, whereas whole of life assurance will provide a lump sum whenever death occurs, provided premiums have been maintained for the duration of the plan.
Term plans are typically used when covering a financial liability that will reduce or end in the future, for example repayment of a mortgage or to provide a sum to cover the cost of educating your children.
Whole of life plans are typically designed to cover liabilities that will arise on your death, no matter when that is, such as an Inheritance Tax bill or to supplement what you leave to your heirs. Whole of life plans are also used where the period of cover is unknown or uncertain.
Your earning potential is likely to be your family’s most valuable asset. Income protection plans are designed to provide you with an income should you be unable to work for a prolonged period due to illness or injury. These plans will cover you for a specified number of years (usually until retirement) and, in the event of a qualifying claim, the proceeds are paid until you are able to return to work or reach the end of the term, whichever occurs first.
If you are diagnosed with an illness such as cancer or suffer a heart attack, you and your family may find yourselves financially worse off. This is because your expenses are likely to be the same, or even higher, but you may be unable to work or even decide you don’t want to work any longer.
Critical illness plans provide a lump sum in the event of you being diagnosed with one of a large number of specified illnesses. They can be structured on a term or whole of life basis and, given that we are more likely to suffer a serious illness than to die before we retire, it is perhaps the most valuable element of all protection plans
“Over the last 15 years we have built a strong and trusting relationship. Sarah’s advice has proven to be excellent, and I have total peace of mind being looked after by such a safe pair of hands. She now looks after my children’s financial affairs too.”
Client Since 2000 (18 years)