Protection

Protecting your family’s finances against the unexpected

Many families would struggle to make ends meet if a family member developed a serious illness or died. This is why it’s so important to take advice to ensure you have the right level of financial protection and insurance in place. Our specialists can give you the peace of mind that you and your family are protected, whatever the future brings.

Why might you need protection?

The most common reasons for setting up financial protection are to:

Maintain your lifestyle and make any debt repayments if you became unable to work due to an accident or illness
Provide for your family if you died or developed a serious illness
Cover a future Inheritance Tax bill without the need to sell the family home

An unexpected illness or death can often leave your family in a precarious position – protection gives you the peace of mind that your family will be financially secure, whatever the future brings.

Find out more about financial protection for you and your family in our guide.

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Getting to know your family

In order to give you suitable advice, our financial planners will get to know your financial and family circumstances. They can then begin checking for potential shortfalls or vulnerabilities. We call this disaster planning and it involves running through various scenarios to assess the impact on your family and their lifestyle, income, capital resources and future aspirations.

After any potential risks or vulnerabilities are identified, your financial planner can begin setting up the appropriate levels of protection to ensure any shortfalls will be covered.

Ongoing reviews

Your level of protection and insurance policies should be reviewed regularly to ensure they remain suitable. People’s needs and circumstances change over time, but in general you should contact a financial planner to review your protection whenever:

Your children become independent or a new child is born
You change jobs or retire
You start up or sell a business
You make lifestyle changes, such as quitting smoking
You take out or finish paying off a mortgage or other loan

Our protection specialists

We have a dedicated team of protection specialists who have a deep understanding of the products available. They aren’t tied to any single provider – instead they carry out in-depth due diligence on all insurance providers and products, and maintain an in-house list of approved plans. This means that your financial planner can select the most suitable plans and features to meet the unique needs of your family.

Our dedicated team of protection specialists carry out in-depth due diligence on all providers and products, and maintain an in-house list of approved plans.

Frequently asked questions

1. Why might you use protection or insurance?

Protection is often needed to ensure your family will remain financially secure if you were suddenly unable to provide for them – for example, if you became ill or died. Protection can also be used to pay a future Inheritance Tax bill.

2. What types of protection are available?

Financial protection usually comes in the form of an insurance policy. There are many different types available – the right one for you will depend on your individual circumstances.

Life insurance pays out a lump sum or a regular tax-free income when you die
Income protection (salary replacement) cover pays a tax-free monthly income if you become unable to work due to a health condition or injury
Critical illness or serious illness cover pays a lump sum or a regular tax free income if you are diagnosed with (and survive) a serious illness, or have to undergo certain complex surgical procedures

3. What is the difference between level and decreasing term life insurance?

Level term and decreasing term life insurance policies both continue to provide protection for a predetermined length of time, and will pay out a lump sum if you die within this period. However, level term policies specify a lump sum that can stay the same throughout the life of the policy, whereas decreasing term policies offer a lump sum that automatically reduces over time.

4. What is a whole-of-life policy?

Whole-of-life policies are a type of life insurance that last for the rest of your life, rather than for a predetermined number of years. They are often used to cover a future Inheritance Tax bill. Premiums can be guaranteed (the future cost is known) or reviewable (the future cost is unknown).

5. What are family income benefit policies?

Family income benefit policies pay money to your beneficiaries upon your death or if you are diagnosed and survive a specified critical illness. However, unlike other life or critical illness insurance policies they pay out a regular tax-free income until the plan’s end date, rather than a one-off lump sum. You can choose how long the policy payments will last – for example, until your youngest child turns 18.

6. How does income protection cover work?

This type of insurance pays out a tax-free monthly income, based on a percentage of your earnings, if you become unable to continue your normal occupation due to a health condition or injury. After a pre-agreed waiting period, you can claim a percentage of your earnings until the cover expires, you return to work, the policy ceases or you die.

7. What is critical illness or serious illness cover?

Critical illness cover or serious illness cover pays a tax-free lump sum if you are diagnosed and continue living with a defined illness, or have to undergo certain surgical procedures. The list of conditions includes heart attacks, strokes, brain tumours, a range of cancers and degenerative diseases such as Parkinson's. Critical illness benefits for children are automatically included with most providers.