For many the health and well-being of close family members is a top priority and events of recent months have probably led to an even greater appreciation of this. Questions about what will happen if you, or they, were to lose a job, fall ill, or even worse, die may often come to mind as well as the fear of not knowing what to do to minimise the impact.
Facing the emotional challenges would be bad enough but the financial impact could also be devastating and lead to even greater anxiety, and possibly health issues, in the longer term - yet there are ways that these can be eased by gaining protection insurance, as explained below:
What is Protection Insurance?
Protection Insurance provides financial protection to you or your loved ones if you were to become ill, unable to work or sadly passed away. Unfortunately the impact of these events could substantially affect your finances and mean you don’t have enough money to pay your usual outgoings which could seriously affect your lifestyle and even your health.
There are three main protection insurance products; Income Protection, Critical Illness Insurance and Life Insurance.
What does each provide?
- Income protection pays a proportion of your income each month if you’re unable to work due to illness or injury and should help you maintain your lifestyle despite of it. Mental health conditions, cancer and musculoskeletal disorders that affect muscles, bones, and joints are commonly covered under this.
- Critical Illness Insurance is designed to help you and your family financially while you deal with your diagnosis and treatment. It pays out a lump sum payment if you meet one of the list of definitions that the insurer specifies and can be paid out at a specific time i.e. on diagnosis of a critical illness or perhaps further along the line when treatment begins.
- Life Insurance is designed to provide financial support to your loved ones when you die. There are various types of life insurance that can, for example, pay out a set lump sum payment on your death during a specified term or there are products designed which offer a decreasing amount of money to be paid – perhaps to tie in with a reducing mortgage loan.
How much do the insurance products cost?
This will depend on your individual circumstances and on the amount you would want to be paid in the event of your death, injury or illness.
Will I still be able to get protection insurance in view of the current pandemic?
Yes. There are still protection products available, although your insurer may ask some additional medical questions about Covid19 and whether this has had any affect on you. They will then, as usual, make a decision to accept your application based on the answers you have provided to this, and all others questions.
Where can I go for more help?
Embrace Financial Services (EFS) will be happy to help you. Simply book an appointment with one of our fully qualified financial consultants who will be able to explain more about the protection products on offer, how much these might cost you and your chances of gaining one.
You may also like to view a great video that has been produced by insurers, Aviva (whose products EFS offers). This provides further information about protection insurance generally and also how you might be prepare for an appointment with us.