Types of protection

Why it is important to protect you and your family

Posted by Greig Portingale on January 25, 2019

I haven’t posted in a while, this is mainly due to a very busy start to the year, however, I thought I would focus on protection for a change and what policies are available to you.

I will start with why it’s important to protect yourself:

Importance

As humans we are a funny bunch, I often see people insuring their dog, cat, Sky dish and tumble dryer but we often oversee insuring ourselves or our family.
Why, I don’t know to be honest, but this is very common particularly in the UK. Let’s face it, life insurance, critical illness cover or medical insurance is just the same as dog insurance. You get sick, terminally ill or die the insurance will pay out (subject to certain conditions).
A pet who has recently died or has got seriously ill is traumatic and costly, your insurance will probably cover the costs which may make the situation a little more stress free, however, just imagine if it was your child or partner that got seriously ill or died.
This will undoubtedly be one of the worse days of your life and any money issues would be the least of your worries, but, just remember as traumatic as this time will be, you are going to need to pay for a funeral, you will need to continue paying that mortgage or rent and you will need to continue to support the family financially.
So, whilst pet insurance is important to some people protecting yourself must be your priority.
Let’s look at the different type of insurance policies available:

Life insurance

Life Insurance

Life insurance policies are cheap and mean it can be really cheap. There are such a wide variety of life insurers in the UK that the chances of you finding a life insurance policy to suit your needs are high. Life insurance basically pays a lump sum or can pay a fixed sum every month to a beneficiary (i.e. partner) if one of the policy holders die.
This lump sum can be used to repay a mortgage or can be used for any reason the surviving beneficiary chooses.
Life insurance can be particularly good to pay off a mortgage especially if the main breadwinner died.

Critical illness

Critical Illness

Recent facts in the UK state that 1 in 3 of us will get a critical illness in their lifetime. We often oversee the importance of this product and the attitude ‘that won’t happen to me’ generally applies. However, just imagine if you contracted a critical illness, you survived but you needed specialise equipment to keep you alive.
These costs could run into the thousands and I can bet your bottom dollar that your family will not say just turn off the machine and let him/her die. They will do what ever they can to keep you alive and ensure you have a happy comfortable life.
Critical illness will pay a lump sum on the diagnosis of a specified illness, this could be certain cancers or a heart attack.
Critical Illness could be used to pay a mortgage off even if you were to survive or it can be used to help support your family.

Income Protection

Income Protection

Income Protection is highly under rated, yet more and more people are going self employed or don’t get any sick pay through their employer.
What is generally your biggest weekly/monthly asset? - your wages or income.
How long could you stay financially stable if you were out of work for a prolonged period of time?
If you answered 4 weeks or less to the previous question then you should look at income Protection.
Income Protection will pay you a monthly wage (up to an upper limit) for either 1, 2, or 5 years or if you wanted you can cover your income up until retirement. A lot of financial experts will say that income Protection is more powerful than say critical illness. Let’s imagine that you were unable to work for the rest of your life due to a serious illness. Critical illness will pay you a lump sum where as an income protection policy will pay you a monthly wage for the rest of your life. It is easy to see why a lot of people choose to go with income protection.

Private Medical Insurance (PMI)

medical insurance

We all get sick or have an injury in our life, right? This is where we would rely on the NHS, however, you can’t get an appointment for months and sometimes by that time your body has naturally healed itself or it gets worse.
The NHS waiting list is the biggest it has ever been and there are no signs of this decreasing. The funding for the NHS is getting smaller by the year and most people are worried that the NHS won’t be around much longer.
This is where PMI can come in, monthly premiums for a PMI policy pay for you to have private medical treatment in a private hospital or with a specialist consultant. PMI is a quicker route to treatment which at times can be a priority.
PMI is also very popular with employers. You can get group PMI options which can be very flexible but this type of cover also offers your staff extra benefits which in turn may lead to a better retention.

MetLife

medical insurance

This is quite a unique product and there isn’t really another comparison on the market. MetLife is a brand that offers insurance on a multi basis.
Their main benefit covers broken bones for adults or children this is really popular if you or your child plays sport.
The amount payable is small compared to life insurance but it’s not been designed to pay off mortgages, it's there to pay for extra physio or extra equipment needed as part of your rehabilitation.
The great thing about MetLife is the product is only £8 per month per unit with a child just costing an extra £1. There are also no medical questions so all people from all backgrounds can get this cover.



We can help with all your protection needs and if you are looking for cheap life insurance or a quality critical illness policy then Speak to Bristol and Bath Financial Services for the right advice. Contact us now through social media or email me here