Summary
Permanent Health Insurance, Life Assurance and Critical Illness Insurance should all be considered by people who have a husband/wife or children or anyone dependant on them for financial security. Read this article to find out what is relevant and available.
It is deplorable but true that one in five of us will suffer some form of cancer before before the age of sixty five. Pat May, a director at Sarah Shaw and Partners, a firm of Independent Financial Advisors, says “That’s why protection is imperative” – those are not good odds,”Life Insurance is the most general insurance taken out, though it is doutful as to whether it is the most essential. Life cover is imperative if you have a spouse or children but not if you don’t as it settles after you die. Many people assume that they can’t afford to have Life Insurance but the truth of the matter is that they cannot afford not to have if they have a wife and children to protect and support.
The Life Insurance Shop a firm of Independent Financial Advisors reveals in a current study that twenty four per cent of people with a family don’t know if they have Life Insurance Cover or not and twenty per cent don’t have it.
Many business packages include life cover but they are normally not enough to provide an income for a spouse with dependants and cover the mortgage too. A standard guideline is to protect yourself for 15 times your yearly wage.
Money Supermarkets investigations have revealed that over the last thirteen years the average price of Life Assurance has fallen by 44% merely because people just happen to be living longer due in part to medical advances allowing sick people to recover from illness that, at one time, they would in all probability have died from. People who already have life assurance are probably not conscious of this fact and will not gain anything unless a claim is made, so do not need to feel that they have to stay with their existing policyholder – at this moment in time there are much better deals around.
On the other hand, Permanent Health Insurance and Critical Illness Insurance payments are rising as people are surviving severe illness and are making a claim on the insurance. They are still vital and ought to bebudgetedfor ifpossible specially if there are no dependants. The question that you have to ask yourself is can I afford not to have an income? For most of us the reply is no and everyone should have income protection.
Income Protection Insurance settlesa tax-free income which is worked out on a percentage of your salary for ‘non-critical’ as well as critical illness and for the complete length of time that you are unable to work.
Critical Illness Insurance, if you become potentially terminally ill, will pay out a tax-free lump sum,, which should help to lighten financial strain or provide for any adaptations that may be needed if your mobility will be affected. Statutory sick pay (SSP)will not pay out nearly enough money to help with the financial blow that critical illness can produce.
The Insurance Company works out a payment on your risk profile. If you have a family history of sserious illness or drink heavily or you smoke your premium will be higher. Premiums are calculated on the individual but if some of your family have been seriously ill, particularly under the age of 50, this could raise your premium by 49%.