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Protect loved ones using insurance

A New Year could mean buying protection insurance. Although rare, families are exposed to a parent having serious accident or becoming too ill to work, or worse when bereavement robs the breadwinner. Have you considered protection insurance to mitigate these risks?

Protection Insurance

The mystery of protection insurance

A well know insurer found that only 7% of adults (25-44 years) bought a protection insurance product in the last three months of 2020. Protection products remain a mystery to many, as nearly 20% in this age bracket said that they had never heard of Income Protection insurance. 

The Big 3:

  1. Life Insurance helps minimise the financial impact of bereavement as it pays out on the death of the insured person. Although young, single people often believe that they don’t need life cover, it can help with funeral costs and leaving loved one’s money. Getting life insurance while you’re young and fit is cheap, but it’s never too late to buy a life insurance policy.
  2. Income Protection Insurance supports those unable to work. It is built to pay a benefit if unable to work for a period because of illness or injury. The policy is bought covering 75% of pre-tax income and will pay until you can return to work or for the agreed period, whichever is sooner. Protects having to spend savings if unable to work.
  3. Critical Illness Insurance deals with a diagnosis of a serious illness. Critical illness is bit like life insurance, but you don’t have to die to receive tax-free money lump sum. Most claims are for cancers, heart attacks or strokes. Helps pay the household bills while undergoing medical treatment.

It is easy to think the state will help families. However, getting £96.35 a week Statutory Sick Pay after 4-days of illness and then for up to 28 weeks, may not be enough for many families. Yes, protection insurance is an additional expense, but for a small amount of money per month, it stops a sudden financial shock getting out of hand. Protection insurance is cheaper than you think. The key reason for insurance is to create peace of mind for you and your family.

ChildMax pays your take home salary while you’re on 12 months’ unpaid leave, caring for a sick child. It starts from £49.50 or for easy budgeting an initial payment of £8.25 followed by 11 monthly payments of £3.75.

Visit at www.insurewithmax.com  or call the UK call centre 0333 323 0098 for more information.

Important: This article is provided for information purposes only. Please speak to a Financial Adviser for protection insurance advice.

Sources:

https://www.aegon.co.uk/news/why_you_might_needprotectionandwhatitdoes.html

https://www.moneyhelper.org.uk/en/everyday-money/insurance/what-is-income-protection-insurance

https://www.thisismoney.co.uk/money/lifeinsurance/article-9388691/Nearly-half-UK-adults-consider-taking-income-protection-cover.html

Date: 14 February 2022 by max robinson