Life insurance is designed to provide you with a sum of money in the event of your death during the term of the policy. The lump sum can then be used by your family and dependants as however they choose. This could mean that should the worst happen, your family will be taken care of.
The cover can be arranged on a Decreasing Term Assurance or a Level Term Assurance policy. A Decreasing Term Assurance will pay out a cash lump sum on death, however, as the term of the policy progresses the cash lump sum paid out will decrease. Generally, this type of cover is cheaper than a Level Term Assurance Policy and this is because on a Level Term the cash lump sum paid out will remain the same throughout the term of the policy.
Critical Illness Cover is designed to support you if you were to be diagnosed with a specific list of critical illnesses, for example: heart attack, stroke and some cancers; the list will depend on the type and provider of that cover. The cover will pay out a lump sum amount tax-free, which you can use however you need to. For example, it could be used to replace a lost income whilst you are recovering, fund private treatment or make changes to your property if needed.
Ideally, the cover is there to make your finances a little bit easier to allow you the time to concentrate on spending time with your family and getting well. This cover, like Life Cover, can be taken on a Decreasing or Level Term and can tailor your cover to your budget. For example, if money is tight, you could look at taking cover for a years salary as some cover is better than none. It is important that you do not just look at the price of the policy but also the illnesses covered and any additional benefits. This is where we can help you to make sure you are protected to the best level for your budget.
An Income Protection policy is designed to replace a proportion of your salary if you are unable to work as a result of an accident or sickness. Very few of us have sufficient savings in place to support us if we are unable to work for an extended period of time. Income Protection policies can pay a monthly income until such times as you are able to return to work, you reach retirement or the policy term ends.
By having something like this in place, you will have the peace of mind of a regular on-going income to maintain your bills if you are ill, or have an accident which means you need to take time off work. Many employers will not support their staff financially if they require more than a year off work, when coupled with the low level of state benefits available, there is a clear need to consider Income Protection.
There are a number of ways in which Income Protection can be set up, which is why it is important to discuss your needs fully. At Upton Financial Advice we will look at getting the most appropriate cover for you in line with your budget.
We all hear news of a friend or a relative who is off work for a few months, or has been diagnosed with a serious illness, or has unexpectedly died. It's shocking and all the more difficult to imagine it happening to us.
The calculator uses population and industry statistics and your personal results are shown as a percentage. Please remember, these results are only a guide and are not certain to happen. Everyone is different, as are their financial needs. If you are unsure what to do next, speak to your Upton Financial Advice adviser.