Protection

The main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you. These people could include family members or business partners.

It can provide the reassurance of financial protection for you, your family, and your business associates.

A Life Assurance policy pays out a sum of money when the person who is covered by the plan dies. The money is intended to pay off any outstanding debts and support your dependants financially by providing them with a further lump sum or a regular income if you die.

Please be aware that this type of assurance is based on an assessment of the health of the applicant.

This cover will pay out if death occurs, and provides an income per year for the term remaining on the policy. For example, for a 20 year term, where the claim occurred after five years, there would be 15 annual payments made in total.

The payments are not normally subject to income tax but may impact some state benefits.

Cover is for a set term, which may be equal to a mortgage term, for when children have grown up, until retirement or another life stage milestone. It may be worth considering having one policy for a set term to cover the mortgage, and another that will provide money to help provide for your different lifestyle if a serious illness happens.

Most people choose a lump sum to be paid out. There is the option of receiving it as set income over the term remaining, which is often a lower cost option.

This provides income where you are ill or injured, and as a result your income through employment or your normal route stops.

It is designed to replace most of your net income.

Cover lasts for either a set term in whole years, or to a given age (typically your state retirement age). The amount you pay is called the premium. It can either be guaranteed not to change, or it can be reviewable. Reviewable cover normally changes based on the claims experience of the life assurance company.

Home insurance is the combination of buildings and contents insurance. Mortgage lenders will require that your property is covered by building insurance, therefore it is a vital policy. Contents is also an important policy if you are going to be residing in the property. There are lots of options to both policies, such as adding in accidental damage, high risk items, bicycles and items your take away from the home.

Buildings insurance will protect you for repairing damage to the structure of your property. This ranges from small repairs, such as replacing drains, to the full cost of rebuilding your house after a major event.

Contents insurance will cover your possessions if they are damaged, destroyed or stolen. Possessions are items that aren’t part of the building or structure.