Jo from Mortgage Confidence has just completed a refresher course on protection insurance. The course covered critical illness cover, life insurance and income protection. And taking a deep dive into the topic really got her thinking.
“It reminded me how we can believe ourselves to be invincible. Especially in our younger years. I have very clear memories of zipping around Goa on a motorbike when I was 23. No helmet in sight and not a thought for the consequences!
“But protection insurance can provide you and your family with some peace of mind if you’re unable to work, become seriously ill, or pass away”.
These insurances act as a valuable financial buffer should the worst happen, but people are often reluctant to take them out.
Some of the main reasons people gave for not investing in protection insurance include:
- Thinking an accident or illness will never happen to them.
- Believing that the insurance won’t pay out if they claim.
- While research shows 1 in 3 people believe the insurance will be too expensive.
But it’s just not the case. And there’s stats to back this up.
4 reasons why you should get protection insurance
1. Sadly, humans aren’t invincible
Unfortunately, according to the NHS 1 in 2 people will develop some form of cancer during their lifetime. Physical Health England says one in six people will have a stroke in their lifetime. And the British Heart Foundation believe there are as many as 100,000 hospital admissions for heart attacks each year. That’s 1 every 5 minutes. Plus, road safety charity Brake says someone is killed or seriously injured every 16 minutes on UK roads.
2. A massive 98% of life insurances pay out
Pay out rates are high. According to the latest stats, in 2021 98% of all life insurance claims resulted in a successful pay out.
In fact, according to the Association of British Insurances, a record £6.8 billion was paid out in individual and group life insurance, income protection and critical illness claims in 2021.
3. You can tailor premiums to your budget
A recent report in Your Money discovered that life insurance cover of £100,000 for a non-smoking 30-year-old could start from as little as £4.36 a month.
“That’s much less than a Netflix subscription or a monthly high street coffee subscription,” Jo adds.
4. Some insurances offer ‘added value services’
Many protection policies provide ‘added value services’ or ‘umbrella benefits’ that you can access at any time without needing to make a claim. These can include:
- 24/7 virtual GP service
- Health MOT
- Access to specialist nurses
- Mental health support
- Expert second medical opinion services
- Nutritional and wellbeing advice
- Fitness programmes or discounts.
So, what are the options for protection insurance?
Here’s a little recap from Jo:
What is life insurance?
Life insurance is all about ensuring your dependants have the money they would need if you were no longer around.
Essentially, should you die, life insurance protects your family from financial difficulty by issuing a lump sum or regular payments. It can help them deal with everyday money worries like bills, childcare costs, mortgage payments or rent.
What is critical illness cover?
The long-term insurance policy is designed to pay out a tax-free lump sum if you are diagnosed with a serious illness.
This one-off payment could help pay for your mortgage, rent, debt or alterations to your home, such as wheelchair access, should you need it.
What is income protection?
Formerly known as permanent health insurance, Income Protection usually pays out until retirement, death or upon your return to your job, if you are unable to work due to illness or injury. Although you can find some short-term income protection policies which last for one or two years.
Given that you are actually more likely to be off work due to long term illness than to die prematurely, Income Protection cover can provide great peace of mind should you find yourself unable to work. It’s especially worth considering if you are self-employed or live alone and don’t have someone to share the bills with.
Hurry — we’re conducting a free* mortgage and protection insurance review
Why not use the start of 2023 as an opportunity to do a deep dive into your own financial situation? Including how you and your family would cope if something unexpected happened.
At Mortgage Confidence we don’t charge a fee for arranging protection insurance. And, until the end of February, we are conducting a free* financial review. Whether that’s:
- Reviewing your mortgage if you’re looking to save money
- Providing you with a protection quote
- Or reviewing the current protection you have in place to make sure it meets all your 2023 circumstances
Jo adds: “Why not start the year by doing something your future self might thank you for? And, it probably goes without saying, don’t drive around Goa without a helmet! I may need to hide this snap from my children when they get a bit older!”
Ready to get in touch today?
* You may be charged a fee if, as a result of the review, you decide to take up a mortgage.
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