Individuals             

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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 cover a mortgage or other debts.

• To protect your beneficiaries against any inheritance tax liability.

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Considerations:

Do you want your beneficiaries to be left with the burden of selling your property just to pay the mortgage debt. They may have to sell at a reduced cost and may have the mortgage costs to pay while they are selling it.

 

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 pay off your mortgage or go towards the monthly payments.

Considerations:

 

• 1 in 2 of us will suffer a critical illness during our lifetime.*

• How might your life and priorities change if you were faced with a life changing condition? And do you have the finances to support that.

* according to Cancer Research UK 2022

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

Why might you need it?

 

• 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 financial commitments to maintain i.e a mortgage.

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Considerations:

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• In 2021 the average age for a claim with Insurer Aviva was 44. The average length of time a plan 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 family could help, consider the impact on their savings and lifestyle.

 

It is important to protect yourself and your lifestyle.