The past few years have taught us all that it’s important to consider how you would handle not being able to work but still needing to provide for your family. Do you have a plan in place to deal with sudden illness, injury, or unexpected death? If you need help understanding how to ensure your family is protected, learn more about life insurance, income protection, and critical illness policies.
This does not constitute advice and advice should be sought in all instances before acting on it.
Exactly how much and what kind of protection you need is entirely dependent on your unique circumstances. Here’s an overview of the three main tenets of protection.
Life insurance
Life insurance is a unique kind of policy since it will only pay out in the event of your death. You don’t actually benefit from the policy directly because it’s designed to provide your family with an income after your passing.
Choosing between term life insurance or whole of life insurance will depend on your needs. Term life insurance covers you for a specified period of time stated in your policy while whole of life insurance covers you for your entire life.
There are even more options to choose from when it comes to life cover, so be sure to speak with a financial adviser to work out the right coverage for you.
Income protection insurance
Income protection insurance helps protect your income in the event of illness or injury. This kind of policy is meant to provide financial assistance so you can still cover your everyday living expenses. It’s crucial to have income protection if you have any sort of regular monthly payments so your family and loved ones won’t have to worry about finances.
Income protection is especially important for people who are self-employed or anyone who has a family to support. If something happens that prevents you from working then your insurance policy will provide you with a replacement income, paid out in regular instalments so you don’t fall behind on any regular payments, like your mortgage or other essential bills.
As with life insurance, to ensure you secure the right kind of income protection seek out professional financial advice.
Critical illness cover
Critical illness cover provides a financial safety net if you fall seriously ill or are diagnosed with a critical illness that is covered in your policy. You can use the money to help pay for treatments, renovate or update your home to accommodate your new needs due to illness, or anything really that will help you or your family if you’re unable to work. Certain policies may even pay out if you are diagnosed but still able to work or if you die as a result of your critical illness.
Life offers no guarantees and you never know when you could become ill, so having protection in place is important for the peace of mind provided to you and your family.
Ready to get protected?
If you have a family that depends on your income, it’s wise to have a plan in place to assist them financially in the event that you get ill, injured, or pass away suddenly. If you have questions about the various types of protection policies or need help deciding what’s right for you, get in touch with us now.
