Unfortunately, none of us can predict the future, but it is important to prepare for hard times whilst the times are good. The effects of death, illness & redundancy can be devastating, and ultimately can lead to the loss of your home. With the right protection in place you can avoid any additional worries about your finances. At PJM, we listen to what is important to you and make sure you have the right protection in place and within the budget that you wish to spend. We will look at several different protection providers in order to match your needs and requirements.
There is a well known expression ‘nothing is certain but death and taxes’ – we all know that we can’t live forever but none of us knows exactly when we are going to die. If you pass away without being prepared, your family financial security could be in jeopardy. This is where Life Assurance (sometimes known as life Insurance), can help. Taking out Life Assurance Is a simple, popular way to help protect the people you love if you die during the period you are covered for. If you have life cover to protect your mortgage, this will typically be for the same value and term of your mortgage and is designed to pay it off in full should you pass away.
Critical Illness Cover
Critical Illness Cover pays out a tax free lump sum if you are diagnosed as having one of a specific list of illnesses. The number and definition of illnesses covered vary provider to provider. Some examples of Critical Illnesses are; Heart Attack, Cancer, Stroke & Multiple Sclerosis. Critical Illness Cover can give you the peace of mind that if you unexpectedly fall ill, you will receive a pay-out to help you cope financially. You can combine Critical Illness Cover with Life Assurance or have it as a separate policy altogether.
Not all forms of cancer, heart attack and stroke are covered by a critical illness policy.
Income Protection was formerly known as Permanent Health Insurance (PHI) and is an insurance policy that pays out a percentage of your income if you are unable to work due to injury or illness. Income Protection pay-outs are tax-free and are paid directly to you, usually on a monthly basis. This is the one protection policy every working adult in the UK should seriously consider and ironically it is the one that most people don’t have. It is important to make sure that you are aware of how much and how long your employer would pay you for, if you were unable to work. Could you survive on savings or sick pay from work? If not, you will need some other way to keep paying the bills, Income Protection can help to do this.