Summary
Life Assurance, Critical Illness and Permanent Health Insurance should all be thought about by people who have a spouse or children or anyone dependant on them for financial security. Below we explain what is available and most relevant to you.
It is shocking but a fact that one in three of us will get some form of cancer before we reach the age of sixty five. Sheila Downs, a consultant at Fiona Price & Partners,a firm of Independent Financial Advisors, says “”These are not great odds, so protection insurance is very necessary”Life Insurance is the most common cover taken out, though it is doutful as to whether it is the most necessary. Cheap Life Insurance quotes are crucial if you have a husband or wife or children but not if you are alone as it pays out after you die. Lots of people think that they can’t afford to have Life Cover but the truth of the matter is that they can’t afford not to have if they have dependants to protect and support. JD Metcalf and Sons a firm of Independent Financial Advisors reveals in a new study that 25 per cent of people with a family don’t know if they have Life Cover or not and 25% don’t have it.
Many employment packages include life assurance but they are normally not enough to provide an income for a wife or husband with family and pay the mortgage too. A standard rule is to insure yourself for 14 times your yearly wage.
Money Supermarkets investigations have revealed that during the last 11 years the average price of Life Assurance has gone down by 44% merely because people seem to be living longer due in part to medical improvements allowing sick people to get better from conditions that, at one time, they would most likely have died from. People who already have life assurance are perhaps not aware of this fact and do not stand to gain anything unless a claim is made, so shouldn’t feel that they have to stay with their existing policy holder – there could well be better deals on the market.
On the other hand, Medical Insurance, Critical Illness Insurance and Permanent Health Insurance payments are increasing because people are surviving serious illness and are making a claim on the policy. They are still vital and should bebudgetedfor ifif you can especially if there are no dependants. Maybe you should ask yourself the question, can I afford not to have an income? For the majority of us the response is no and everyone should have income protection insurance.
Permanent Health Insurance pays outa tax-free income which is worked out on a percentage of your income for ‘non-critical’ and critical illness and for the whole length of time that you don’t work.
Critical Illness Insurance Cover, should you unfortunately become terminally ill will settle a tax-free lump sum, which can help to lighten financial strain or pay for any adaptations that may be indispensable if your mobility was to be affected. Statutory sick pay will not pay out nearly enough money to assist with the financial blow that severe illness can trigger.
The Insurance Company assesses a premium on your risk profile. If you have a family history of ssevere illness or drink excessively or smoke a few cigarettes a day your payments will be much higher. Premiums are measured on the individual but if any of your family have been severely ill, particularly below the age of 45, this could increase your payments by 45 per cent.
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