Family Protection

You may feel that once you’ve got your mortgage loan it’s job done – but what about family protection insurance? Protecting the income stream(s) that will pay the mortgage, along with all the other family living costs?

Many of us recognise the importance of insuring our homes, mobiles and pets. Yet do we apply as much importance to protecting the wage earner(s) who fund the above costs and much more? That is what is meant by family protection insurance.

Many may feel that untimely death, serious health issue, or a major injury are highly unlikely, or way off into the future. Do take a look at the details below, as you’ll see that it’s possibly more likely, and earlier in life than you think.

It’s better to have some family protection insurance cover in place and not need it than to really need it and not have it!

What type of family protection is best for you?

There are three main areas to consider, and within these, a massive array of options to suit your age, life stage, and pocket:

• Life Cover – this pays out a lump sum when you die, or a regular income in the case of Family Income Benefit.
• Critical Illness Cover – this pays out a lump sum when you have a specified serious illness.
• Income Protection – this pays you a percentage of your monthly income when you can’t work due to illness or injury.

My Employer will support me

This may, or may not, be true, so do check what’s on offer – as there’s no point duplicating your cover. For example, if you are off work long-term, due to illness or injury, and there’s only support provided at the basic level, then it’s Statutory Sick Pay. SSP is just £94.25 a week, paid for up to 28 weeks if you qualify. This is less than one-fifth of the average weekly wage of around £500*. That could leave a big shortfall in a person’s finances. (Source: *Office for National Statistics, UK Labour Market, May 2019 release)

Separately, if you are part of the 4.9m workers that are self-employed*, then your exposure is probably even more pronounced!

Added value benefits

The insurance industry recognises that a payout upon claiming may be the initial driver in setting up a policy. But it’s also aware that there is a real benefit – for both the insured and the insurer – if a relationship is maintained throughout the policy term. For example:

– Incentives to keep healthy – including discounts off health club membership, and wearable technology to aid fitness.

– Specialist support – such as GP/nurse helplines, telephone counselling, carer support services, consumer rights, early intervention and rehabilitation services.

Costs and payout likelihood

Do talk to us, as you may be pleasantly surprised at how little a plan may cost. As for paying out claims, take a look at the positive figures at the bottom of this page.

As with all insurance policies, terms, conditions and exclusions will apply.

Could it happen to ME?

Did you know that one in eight of all current healthy 35-year-olds will die before the age of 65? Probably leaving loved ones behind to pick up the pieces.

As worrying as the above figure may be, it is probably more likely that someone would suffer and survive a serious illness, long-term ill-health, or injury across the same period. If so, that would impact the regular income stream, whilst the wage earner recovers.

– A sizeable 2 million individuals are currently off work and deemed as long-term sick. (Source: Office for National Statistics, UK Labour Market, May 2019 release)

– Going back 40 years or so, just 1 in 4 people survived their cancer disease for 10 years or more, nowadays it’s doubled to 1 in 2. (Source: Cancer Research UK, April 2019)

– Since 1961, the UK death rate from heart and circulatory diseases has declined by more than three-quarters. (Source: British Heart Foundation, November 2018)

The Mortgage Bureau offers

• mortgages when buying a home,
• remortgages to save cost,
• commercial mortgages to fund ventures,
• associated requirements such as life insurance.

The Mortgage Bureau is a whole of the market broker which means that the best deal can normally be found. The Mortgage Bureau is also independent of any Estate Agent which means that their advice is totally impartial. The Mortgage Bureau builds long term relationships with clients and regularly reviews their requirements throughout the life of their policies.

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