We understand how important protection is for you and your family – you need the peace of mind of knowing you have plans in place if the unexpected happens.
We can advise you fully to on the policies to have in place to provide financial help for you and your family in a range of circumstances, including death, terminal or critical illness, permanent disability or loss of earnings if you're unable to work.
Types of Life Protection
Term Assurance - a policy that provides cash either by lump sum or regular payments in the event of death during a specified period of time.
It's a life insurance policy where the amount of cover stays the same for the duration of the policy term. It could be the right sort of life insurance to choose if you want to provide a specific amount of money for your family and loved ones. It's also usually a suitable policy to protect an interest-only mortgage, where the outstanding mortgage loan remains the same for the term of the mortgage.
Decreasing Term Assurance - differs slightly from normal Term Assurance by being a life insurance policy where the amount of life cover protection reduces during the duration of the term of the policy.
It could be the right sort of life insurance to choose if you want to cover a repayment mortgage or other loan because as the outstanding balance of the loan reduces so does the amount of cover.
This means you only pay for the amount of cover you actually need.
Both of these types of life insurance policies can also have extra options added to them. For example, the addition of Critical Illness Cover as an option will extend the financial protection to provide a cash payout in the event of the insured person being diagnosed with a critical illness as well as providing the cover against death.
Critical Illness Cover:-
Critical illness cover policies pay out a tax-free lump sum if you are diagnosed as having one of the specific life-threatening conditions defined in the policy. The exact list of illnesses covered varies across the different policies provided by different companies, but all of them protect against three main illnesses:-
- Cancer - in advanced cases
- Heart Attack (severe)
- Strokes - if it causes permanent symptoms
There is disparity between the policies/providers as to the number of illnesses covered. Some providers cover 20 conditions – some cover 45 conditions. Some policies include cover for children within the cost of the policy. Some policies also include total and permanent disability cover. Premiums can either be guaranteed or reviewable.
It is very important to take advice before proceeding to make sure that the policy covers everything you want and need it to include and at Cherry Tree Financial we understand the different policies and can advise which is right for you/your circumstances. Quotes from the whole of the marketplace to help you find a policy that suits and is affordable.
Please get in touch with us if you would like to discuss your protection requirement further.
Income protection is designed to protect an individual's income in the event of being unable to work due to illness or disability and is available if you are either employed or self-employed. There are big differences between the providers / policies in the percentage of an individuals income that they will pay out. The policy can start paying out after a pre determined deferred period which will differ from individual to individual depending on access to reserve capital and the benefits provided by the employer if applicable. The payout period can be for a limited number of months/years or for the term of the mortgage. Also it is important to appreciate that the cover will be either in own occupation status or working tasks. It is important to receive comprehensive advice to ensure the right policy is taken out.
Often referred to as ASU or Redundancy Insurance, this is a special type of insurance plan that pays out if you lose your income due to an accident, illness or redundancy.
There are a range of options available. You can cover your self just for unemployment cover, just for accident or sickness cover or you can take out full cover for both. You can also cover yourself for up to either 12 months or 24 months of illness or unemployment.
If you are self-employed, the income paid is normally calculated on the amount of your taxable income, or profits, during the 12 month period prior to you becoming unable to work.
If you are interested in longer term illness cover i.e. if you become incapacitated and unable to work for a long time then you should look at income protection insurance.
This is a renewable contract and has renewable premiums and cover. The insurer can refuse to reinsure.
Buildings insurance is normally a condition of any mortgage offer although you don't usually have to take it out through the mortgage provider. As the name suggests Buildings insurance will generally cover the structure of the property including the walls, fences, drives, patios, windows and permanent fixtures and fittings. You can opt to have Accidental Damage Cover, and the use your No Claims Bonus to reduce your monthly premiums.
A contents insurance policy gives you cover for personal items and household goods within your home. Permanent fixtures and fittings such as carpets will in most cases also be included. You will be able to add high value and specified items to your contents insurance policy if any of your particular belongings are of a large value and you will often be able to adjust cover to take into account of any expensive belongings. Optional Accidental damage gives you for accidental damage to glass, mirrors, stereos, TVs, PCs and other home entertainment equipment and you're protected against mishaps like spillages on your carpets and sofas.