Life Assurance: Benefits of Protection Cover
Protection Cover enables people to make additional provision against the financial impact of life's uncertainties. By taking out protection cover, people can protect their earned income which is at risk in the event of serious illness, accidents and death.
Who should take out protection cover?
Protection Cover should be taken out by everyone who wants to protect their income against the financial consequences of serious illness, accidents and death. Protection Cover is essential for anyone purchasing a property and can be used to secure your mortgage with the bank. Protection Cover is also used to protect businesses from the loss of a partner, shareholder or key employee.
So what type of protection cover do I need?
Life Cover
Life Cover provides a lump sum benefit to your beneficiaries if you die during the term of the contract. The term of the contract is decided by you at the outset.
Serious Illness Cover
Serious Illness Cover provides a lump sum payment on the diagnosis and certification of a prescribed serious illness.
Accelerated Serious Illness Cover
This cover provides a lump sum on the earlier of death or the diagnosis and certification of a prescribed serious illness.
Mortgage Protection Life Cover
This cover provides a lump sum benefit if you die during the term of the contract and is used to secure your mortgage with the bank. This benefit decreases over the term of the contract in line with the outstanding capital on a mortgage.
Mortgage Protection with Accelerated Serious Illness cover
This cover provides a lump sum payment on the earlier of death or the diagnosis and certification of a prescribed serious illness. This benefit also decreases over the term of the contract in line with the outstanding capital of your mortgage.
Mortgage Repayment Cover
This cover provides a monthly payment of 1% of the initial life cover amount if you are sick or disabled and unable to carry out your current occupation. This payment will be made for 2 years. After that, if you are unable to perform certain work related activities the claim will continue to be paid.
Guaranteed Whole of Life Cover
Guaranteed Whole of Life Cover can provide family protection or inheritance tax provision.
How much will it cost?
A number of factors determine the cost of your cover such as your age, gender, whether you smoke or not, your occupation and your medical history. Also, the amount of cover you require and the term of your contract.
How do I make payments?
Premiums may be paid monthly by direct debit mandate or yearly by cheque, or direct debit mandate.
When do the benefits become payable?
If you have selected Life Cover, Mortgage Protection Life Cover, or Guaranteed Whole of Life Cover the sum assured is payable on death only. If you select Standalone Serious Illness Cover the sum assured is payable on the diagnosis of a defined serious illness. If you choose Accelerated Serious Illness Cover, the sum assured is payable on the earlier of death or diagnosis of a defined serious illness.
