FAMILIES

 

The types of cover we advise on and why you might need them.

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1. Life Cover: pays out in the event of death during the term of the plan.

Why might you need it?

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• To protect your family and the cost of raising your children.

• To protect your partner, or to cover a mortgage or other debts.

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Considerations:

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• If you both die and leave the children with a guardian how will they cover

the cost of raising your children?

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2. Critical Illness; pays out in the event of being diagnosed with a critical illness.

Why might you need it?

 

• To help fund medical costs, to make lifestyle changes, replace any loss of income.

• To help cover any time off work for the partner looking after you.

• To protect your children in case anything happens to them. Adult plans can include children’s cover.

Considerations:

 

• In 2021 the average age at time of claim for a child was 7 with Royal London. The average pay out was £22,731 and the main cause was cancer.( based upon Royal Londons 2021 published claims)

• How would your lifestyle be impacted if your child was ill?

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3. Income Protection pays out in the event of being unable to work due to sickness or accident.

Why you might need it:

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• If you have little savings to fund any time off work while you recover.

• If you have limited or no cover from work other than statutory sick pay.

• If you are self employed and reliant upon your own ability to work.

• If you have a joint mortgage to maintain.

• If you have school fees to pay and want to maintain your children’s standard of living.

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Considerations:

 

• In 2021 the average age of a claim was 44 for Insurer Aviva. The average length of time a plan was paid out for was 7 years and 5 months. (Based on Avivas 2021 published claims report)

 

• Could your savings last 7 years and 5 months? If you think your partner could help consider the impact on their savings and lifestyle, consider the strain on your relationship and family.

It is important to protect yourself, your partner and children.