Protection advice

Most of us want to ensure that our families and ourselves are financially secure if we become seriously ill or die. This is where life assurance and other protection policies come in.

There are many types of protection policies designed to protect an individual and his or her family against financial difficulty as a result of events such as early death, disablement, accident, critical illness or the loss of income due to being unable to do your job.

However, buying protection policies is not to be done without serious reflection. Lots of factors need to be taken into consideration such as, what type of cover should you have? What is the right level of cover? For how long should it last?

It’s really worthwhile to discuss these questions with an Independent Financial Adviser (IFA). An IFA will consider your individual circumstances and might recommend, for instance, that instead of going for just a straightforward life assurance policy, you also take out a different type of protection product.

The various forms of financial protection include:-

Life Assurance

Life Assurance provides a guaranteed death benefit if a claim occurs during the period of insurance. Life assurance can be set up for a specified period of time (term assurance) or for the whole of the insured’s life (whole of life assurance).

Income Protection Insurance

Income Protection Insurance makes up income lost through illness, accident or disability. Rates vary according to the dangers associated with one’s job, age, state of health and gender but IPI is thought to be of particular value to the self employed who do not have an employer to continue paying their salary if they are unable to work.

Critical Illness Cover

Critical Illness Cover pays out a lump sum if you are diagnosed with one of a number of specified ‘critical’ illnesses during the term of the policy. Many life insurance companies offer policies that cover you for both death and critical illness and will pay out the guaranteed benefit on the first event to happen.

Private Medical Insurance

Private Medical Insurance can cover you for private medical treatment and you can choose to add on extra cover, such as dental cover. You may select the hospitals that you would want to be treated in close to home. As always the more benefits and the more comprehensive policy you select the more it will cost.

Long Term Care Insurance

Long Term Care Insurance designed to cover you against the cost of nursing-home care in your old age and you can pay for it as a lump sum or in regular payments

Choosing the right mix of financial protection is not simple, particularly when there are so many providers and products.

An Independent Financial Adviser (IFA) can help establish which type of cover is right for you and what level of cover you should have. An IFA can deal with all life assurance and protection providers on the market and will recommend the most suitable product for you taking into account plan benefits and premium.

Optimum Independent Financial Advisers can advise on all types of protection policies. Please use our online contact form or other contact details if you would like to discuss your protection options with an adviser.