MONEY MATTERS Are You Insured?
Many people insure material things, such as cars, jewellery, computers and mobile phones, however overlook the most important thing - themselves!
It is essential to ensure that if you die, or are seriously ill, you or your loved ones are left able to cope financially.
Here are a few important points to consider, when taking out personal protection insurance, such as Life, Critical Illness or Income Protection Cover.
Write Policies in a Trust:
If you die, the lump sum is paid direct to your family straightaway. Otherwise, a payout is added to the value of your estate for probate, a process that can take months and may incur inheritance tax. The process is simple and free, and should be offered to you, whether you buy the cover from an insurer or Independent Financial Adviser.
Check Insurers’ Payout Rates:
This is especially important for people buying critical illness cover where, in the past, insurers have been criticised for rejecting claims. Some companies are ahead of their rivals, and tend to pay out a higher percentage of critical illness claims. Before you sign, ask the insurer for its figures.
Check Conditions Covered:
Most critical illness policies cover between 40 and 50 different conditions, but some may cover only a few. About half of insurers will also pay out something for early stage diagnosis – others will pay only if the condition is fully developed.
Choose Own-occupation Cover:
Some income protection claims won’t pay out, if you can still perform basic tasks, such as walking 200 metres without stopping or using a pen or pencil. Experts argue these tasks are too basic, and make having such a policy effectively worthless. An ownoccupation deal pays out if you can no longer perform tasks necessary to carrying out your own job.
Take Advice:
A specialist in protection insurance says 92% of customers change their minds about what to buy after taking advice.
The actual cost of any potential cover is only one of the factors that should be taken into consideration, and we strongly urge that you seek advice, as there can be many complexities involved.
For example, some Insurers offer a discounted Premium, if you apply for combinations of different types of cover with them, that can sometimes work out cheaper than shopping around for separate cover with different Insurers.
Here, at Brian Mole IFA, we will research the whole of the protection market, and recommend the type and level of cover to meet your exact needs and budget.