INCOME PROTECTION
​​​​Income Protection is a type of insurance which provides you with a regular monthly benefit if, because of illness or injury, you are unable to work, resulting in a loss of earnings, or if you are not in paid work and because of illness or injury you are unable to carry out the things you need to do in everyday life. It usually then pays out until you either return to work, retire, the policy expires, or death.
Policies tend to pay out about 60% to 70% of your gross (pre-tax) monthly earnings into your bank account and it is tax free,​​
You can elect a waiting period of between day 1 and 12 months. The longer you defer, the cheaper the policy,
Income protection insurance in the UK can cost as little as £10 a month. Many people however, pay between £20 to £80 per month. Short term policies are usually more affordable than longer policies,
​Designed to cover living costs while you are not working and will continue to pay out until you return to work. If you can’t return it will continue to pay out until you retire or die.
LIFE INSURANCE
Life Assurance, or life insurance helps you to financially secure your family's future from unforeseen circumstances like premature death from accident. It could pay out a cash sum on death of insured persons. While deciding on the cover you choose the amount of life cover you need and how long you need it for and you can pay your premiums monthly or annually. ​​​Life assurance is commonly called as level term life insurance.
Level term life insurance pays out a set amount if you die within a fixed term​​
Roughly cover 10 times the annual income of the highest earner till kids have finished full-time education
You don't need life insurance if you don't have dependants
Two single policies can be better than joint cover
CRITICAL ILLNESS COVER
Critical Illness Cover is often available as a combined policy with term life insurance. ​​​It could pay a tax-free lump sum if you're diagnosed with a defined critical illness during the policy term. Provided you keep paying your premiums, you should be covered throughout the term. Once the policy term ends, all protection stops.
A cash sum should you die from or be diagnosed with a critical illness,
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You can spend the sum on anything you like such as medical and everyday expenses,
Total Permanent Disability cover optional add-on.
