Critical Illness Insurance Advice in Beverley
Mortgage Broker in Beverley
Critical Illness Insurance pays out a lump sum if you are diagnosed with one of the conditions on the policy such as Cancer, Heart Attack or Stroke. Sometimes Insurers receive criticism for declining claims when someone is very ill but with an illness not covered on their policy but most major providers actually payout over 90% of claims.
If claims are denied it can also be because the claimant did not disclose an underlying medical condition they had when they took the policy out.
In the event of a claim the lump sum is paid out irrespective of whether the claimant returns to work or not, the key thing is whether the illness they had matched the definition on their policy.
The claimant can use the lump sum they receive for any purpose they wish. Be this to repay their mortgage, pay for medical care or make modifications to their home.
Different insurers cover different illnesses on their policies and it’s wise to take advice prior to selecting a policy. This will ensure that you end up with one that is suitable for your needs. Critical Illness Insurance is much more expensive than life cover because the chances of you making a claim are far higher.
Your chances of surviving the types of conditions covered are far higher than they were 30 years ago. However, if you are unfortunate enough to contract one of them then there are often financial consequences. Hence the popularity of the cover, especially for applicants who have mortgages or children to think about.
Our Critical Illness Insurance Advice Service
It’s very important to us that all of our customers are given an equal opportunity to take insurance out through ourselves. We wouldn’t be doing our job right if we didn’t mention it!
We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability. We’ll then recommend which insurances, including critical illness and income protection, meet your needs. If required, we’ll then tailor the plan to match your available monthly budget.
Beverleymoneyman.com
Providing Critical Illness Insurance Advice in Beverley & Surrounding Areas
Life Insurance Advice in Beverley
Life insurance is designed to pay out, usually in a lump sum, in the event of death. With regards to your mortgage, the sum assured should be enough to pay off your outstanding balance.
Here is some information about the most popular types:
- Whole of Life Insurance
- Term Assurance
- Family Income Benefit
- Joint Life Insurance
- Death in Service
Whole of Life Insurance
Whole of life insurance does not have an end date, therefore, providing premiums are being met the policy will pay out. Generally speaking, this type of insurance is used for family protection and also as part of inheritance tax planning.
Term Assurance
Term assurance is the most popular type of family insurance used to cover a mortgage.
Our Advisors will recommend the sum assured and term of the policy, usually to run in line with your new mortgage. Providing that all premiums are maintained, the sum assured will be paid out if you were to die during the term.
There are various types of Term Assurance available, such as decreasing and increasing cover. As part of our personal protection review, the most suitable policy for your needs will be recommended.
Family Income Benefit
This is another version of Term Assurance, where instead of the sum assured being paid as a lump sum on death, it’s paid as an agreed monthly payment. This is very good for families looking to insure an income.
A good advisor will usually recommend a mixture of insurance types tailor-made to match your personal and family requirements.
Joint Life Insurance
If a property has been purchased in joint names, you could consider taking out a single life policy that will payout in the event of one of you dying.
This can be cheaper than paying the premiums on two separate policies, but bear in mind that joint policies only payout on the first death, after that the cover ends.
If you had two separate policies, the second policy would remain in force even after a claim had been made on the first.
Death in Service
Many companies offer their employees family a lump sum payment if the staff member dies while they are employed by the firm.
Although this doesn’t mean the death has to be at the workplace or in any way related to the job done.
This cover will most likely end as soon as you leave the company.
Our Insurance Advice Service
It’s very important to us that all of our customers are given an equal opportunity to take insurance out through ourselves. We wouldn’t be doing our job right if we didn’t mention it!
We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability. We’ll then recommend which products, including critical illness and income protection that meet your needs. If required, we’ll then tailor the plan to match your available monthly budget.
Beverleymoneyman.com
Providing Life Insurance Advice in Beverley & Surrounding Areas
Mortgage Protection Insurance Explained
Mortgage Protection Insurance is a term used to encompass various types of cover designed to protect borrowers from events which could severely impact their ability to maintain mortgage payments.
There are different variations but when connected to a mortgage they are all there to provide peace of mind and usually fall into the following categories:
- Life Cover
- Critical Illness Insurance
- Income Protection
- Family Income Benefit
Life Cover
As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependants aren’t left with a debt they might not otherwise be able to manage.
Our advisors can run through all the different types of life cover and recommend the most suitable plan for you.
Critical Illness Insurance
Critical Illness Insurance works in a similar way to Life Assurance, in that it is usually taken for a specific term of years and can have the different options such as level/increasing etc. It is designed to pay out a lump sum and, like Life cover, for borrowers it is typically taken on a decreasing term basis in line with the reduction of your mortgage balance.
The key is that the benefit is paid if you fall victim to one of a number of specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of illnesses covered vary from company to company, that’s why this type of insurance cannot be solely price driven and advice is recommended.
In practice many companies will offer Life and Critical Illness Critical cover as a combined policy and would usually pay out on the “first event” i.e. whatever happens first – either death or serious illness – the pay-out is made. They can also be written on a single or joint life basis
Income Protection
Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum designed to replace your wages in the event of you being unfit to work. Unlike Critical Illness cover, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work. There are however restrictions on how much you can cover and how quickly benefits would start to be paid.
Like Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies are written on a single life basis.
Family Income Benefit
Probably the least common of the mortgage protection type policies but can often be valuable – particularly for those with young families. These plans can be taken to cover Life and/or Critical Illness and are underwritten on the application in the same way as mentioned above.
However, unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Thus, it can replace the income of the main breadwinner for a number of years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
Summary
There’s an adage that says you can never have too much insurance. Certainly, many people have one or more of the different types of policy and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. However, in the real world, affordability plays a massive part, so whilst it would be fantastic to cover yourself for every potential opportunity, a good advisor will sit down with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget.
This is where we can help!
Please give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists.
