Protection Insurance & The Cost-of-Living Crisis
Posted on 18th July 2022 at 14:00
The last few years have been challenging to say the least. The impact has been felt across all corners of society and for many, the results have been difficult. Understandably, many households are looking for ways to cut spending and make savings where reasonably possibly amidst the current cost-of-living crisis- but is PROTECTION something that should still be prioritised?
In a word - YES!
Protection insurance continues to be undervalued across by many across the UK and frighteningly, thousands of households are therefore not prepared for unexpected events and financial shocks. Interestingly, many people are happy to insure their beloved pet, however don’t attribute the same level of importance when protecting themselves and their family.
Be a step ahead!
Reviewing your protection with one of our advisers is a conversation you are not likely to regret. Whether you already believe you have adequate cover and want to double check, have moved house, separated from a partner, started a new job, or your family has grown – a review is always worthwhile.
What are the three main protection products?
• Income protection
• Critical illness cover
• Life insurance
There are several choices that can be taken separately or combined to ensure you protect you and your loved ones in the event of being unable to work, critical illness or passing away.
Is a medical assessment required?
This depends on a number of factors including your age, health, smoking status and medical history, and how much protection cover you are looking for. Our advisers can explain this in more detail during your protection meeting. It is important to remember that your policy will only pay out if you have answered all questions in the application truthfully and to the best of your knowledge. Your policy may be invalidated if you omit or falsely report information.
Do policies pay out?
‘The average life insurance payout rate is around 98%, so the vast majority of policies do result in a successful claim. Many insurance companies publish their payout rates for transparency and some even explain the reasons behind the small number of claims that were declined.’
Credit: moneytothemasses.com November 2021
If you would like to review your current cover or discuss your available options
According to our research, the content contained in this article is accurate at the time of writing.
Infomation on this website is NOT bespoke advice to its audience as therefore does NOT constitute financial advice.
Readers are encouraged to contact our qualified advisers directly for mortgage and protection advice.
As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments.
Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home.
Share this post: