BY JOHN ELLIS, FINANCIAL ADVISOR
LIFE can be unpredictable, so we insure our homes, cars and even our holidays and phones, so doesn’t it make sense to protect those you love in the event that something happens to you and you can’t provide for them?
By planning in advance the type of protection you and your family might need in the future, you can ensure that you will be financially secure if faced with life’s difficult uncertainties.
Should you have your own business, does it not makes sense that you would want to protect your source of income in the event of sickness or accident?
There are different types of business protection, depending on the type of cover you need but broadly speaking, it will ensure that your business continues to run if you or key employees suffer from serious illness or die.
There are different types of plans to cover various needs.
Mortgage Protection is a dedicated type of life insurance. It helps to clear your outstanding mortgage if you die, or if selected, if you are diagnosed with a specified serious illness, within a specified term. The cover reduces over the term of the plan, broadly in line with your outstanding mortgage.
Decreasing Term Family Protection is a cost-effective form of life cover from Aviva Life and Pensions that ensures you have more life cover when your family is younger and your requirement for life cover is higher. It’s designed so that the sum insured will decrease in a straight-line basis over the term of the contract at a lower monthly premium
Term Protection plans brings you an agreed level of cover life that remains constant over an agreed term. If you die or become ill during this term, your family will be provided for financially. It may make sense to avail of this cover for your key working years, when you have dependents who rely on your income.
Pension Term is life insurance that covers the period up to retirement, usually 65. If you die during this term, your family will receive a payment to ensure they do not suffer financial hardship. There is tax relief available on the premiums you pay under this plan.
Whole of life cover is an insurance plan that lasts for your whole lifetime and is not limited to a specific term. If you pass away this policy will provide a lump sum payment to your family. This plan can also be used to protect your loved ones from the burden of inheritance tax.
Be careful here and make sure the plan is literally whole of life with a guaranteed premium and not a contact that is priced low in the early years and becomes prohibitively expensive as you grow older.
People are living longer than ever before. As a result, the chance of being diagnosed with a serious illness at some point in your life is greater.
Many illnesses that were once thought incurable can now be treated successfully. However, this can lead to additional expenses while you recuperate.
This is where Serious Illness cover comes to the fore. It pays out a tax-free, cash lump sum if you are diagnosed with a life-threatening illness such as cancer, heart attack or stroke.
The premiums for this type of cover can be expensive so a product produced by Zurich Life Cancer cover can help you financially, should you contract cancer, for a lesser monthly premium, giving you one less thing to worry about and letting you concentrate on the main thing – getting better
Your financial broker will complete a fact find with you and from the information provided will produce a “needs analysis report” which will outline the areas you need to address. Then and only then do decide the type of contract required.