Time to review your protection cover?

The pandemic has shown us that unexpected events can strike at any time and highlights the need for protection insurance to keep us afloat during times of financial hardship. Many people have seen their circumstances change, perhaps through job loss or a change in family structure. Now could be the time to think about how you would cope in the future, if the unexpected happened.

Look after your loved ones when you have gone

Have you considered how your family would cope financially if you were no longer there to provide for them? Dying without life cover could mean your family facing financial hardship at an already difficult time. Life insurance pays out a lump sum or regular income to your dependants if you die, and comes in two main forms:

  1. Term insurance – these policies run for a specific period of time (or ‘term’) and will only pay out if you die within this term.
  2. Whole-of-life insurance – these policies will pay out no matter when you die, providing you continue to pay your premiums.

Other ways to protect yourself and those you love

Recent events have also shown the severe financial strain of being unable to work, even temporarily. Research1 shows that 56% of 18 to 35-year-olds believe they would last less than three months on their savings if they couldn’t work, making it more important than ever to get cover in place.

The main types of protection insurance, apart from life insurance, are:

  • Income Protection, which replaces part of your income if you are unable to work due to accident or long-term illness
  • Critical Illness Cover, which pays out a lump sum if you develop a specified, serious illness
  • Payment Protection Insurance (PPI), which provides cover if you are unable to make repayments on your mortgage, loans or credit cards, due to illness or injury.

Protection for your business

In addition to protecting your family, if you have a small business you will know that your most valuable asset is the people working there. You should consider protection insurance such as:

  • Key Person, which pays out if a key member of staff dies (critical illness can also be included)
  • Relevant Life Cover, which provides death-in-service benefit to employees
  • Shareholder and Partnership Protection, which allows business owners to keep control of the company if one of them dies or is diagnosed with a critical illness.

Valuable peace of mind

None of us know what the future holds, but having the right protection cover in place for yourself, your family and your business could provide the reassurance you need. We can help you find protection cover that suits your circumstances, lifting some of your uncertainty and allowing you concentrate on the things that really matter.

As with all insurance policies, conditions and exclusions will apply

Sources

1 https://adviser.royallondon.com/globalassets/docs/protection/state-of-protection-nation.pdf

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