The ‘Three Pillars’ of Protection

Protecting what matters most…

Life Assurance, Critical Illness Cover & Income Protection

Life Assurance
Life insurance is designed to pay out a tax-free lump sum should you die or be diagnosed with a terminal illness. The money is often used to clear a mortgage or to give peace of mind that your family will be taken care of financially if you were to die. It could also be used to help protect your family’s lifestyle and everyday living expenses.

Critical Illness Cover
Critical illness cover can prove to be a valuable lifeline in the event that you are diagnosed with a specified critical illness. You can use the pay out from a critical illness policy to repay a mortgage, keep up with bills or adapt your home to cope with the lifestyle change that the illness may bring. Similarly, with life insurance, ask yourself the same question to help identify if critical illness cover is suitable for you:

“Would your family be able to cope financially if you were to become critically ill and could no longer earn a living?”
Unfortunately, no one can ever be sure what life has in store for them and a critical illness could strike at any time. Statistics show the risk of many critical illnesses is rising in the UK, even among younger people of working age. So if you’re worried about falling critically ill then this is the type of cover worth having.

Income Protection
Out of the three pillars of protection, the policy that you are most likely to make a claim (even multiple claims) is Income Protection. In essence Income Protection is buying your own sick pay. It is designed to give a tax free replacement income in the event that you cannot work due to any accident, sickness or disability.

If your employer already gives you sick pay, an income protection policy will provide a continued income from the point your sick pay stops to the point you are either better, the policy has expired or you have died.