Permanent Health Insurance (PHI)

For most of us, our income funds everything. If it ceases, everything else stops, so how do you ensure its continuation? The answer is PHI, also now known as Income Protection Insurance. This is a form of protection that pays out a regular amount if you are unable to work because of sickness, accident or disability.

PHI can replace a percentage of your income, less any state benefits and cover provided by your employer. The payments are paid tax-free and commence after a period that you specify. You can also decide whether, in the event of a claim, you require the benefit payment to remain level or to escalate annually.

Critical Illness Protection

Critical illness protection is an insurance that pays out on the diagnosis of certain specified critical illnesses. The illnesses covered vary from policy to policy, but they usually include six core conditions: cancer, heart attack/coronary by-pass surgery, kidney failure, major organ transplant, multiple sclerosis and stroke. Generally within 14 days of a specified illness being diagnosed (although this does vary depending on the particular provider), you would receive a tax-free lump sum payment.

The financial consequences of not having critical illness protection could be significant. Calculate the size of your outstanding mortgage, liabilities and other financial commitments. Would you be in a position to repay them if you were diagnosed as suffering from a critical illness, or do you have a shortfall?

Life Assurance Protection

It's not a particularly pleasant thought planning for your premature death. However, if you have dependants, it's essential. Life assurance is designed to do one of two things: replace lost income for dependants or provide a capital sum to repay liabilities. So what are some of your options?

Term assurance policies guarantee to cover you over a fixed term, specified at the outset. Decreasing term assurance is usually used in connection with a repayment mortgage. Family income cover pays out as a regular stream of capital payments, which is continued through until the end of the term. Whole of life assurance guarantees to pay out a lump sum on your death whenever this occurs. This type of life assurance can also be used as a vehicle to plan for inheritance tax mitigation when combined with a trust.

Don't leave it to chance - to discuss your current situation please e-mail or contact us to make an informed decision.