Protection Products and how they work for you

The world can throw us all sorts of curveballs and change our lives in unexpected ways, some of which can result in our financial situation being impacted. This is even more prevalent in the current climate, where cost of living is affecting everyone.

At Future Balance we’ll give you peace of mind that, should the worst happen, you and your family are covered.

We’ll work with you to review your current situation and help you to find the right products to meet your needs.

Here’s a quick run through of some of the products we can offer you…

Life Insurance

Life Insurance is a policy which covers you over a set period and will pay out a lump sum if you pass away during that time.

It can be set up to pay out a decreasing amount (usually in line with your mortgage to ensure it is paid off when you pass away), a level amount or an increasing amount. Sometimes a combination of these policies is required to ensure it provides the financial cushion you may need.

As with any policy, we can help you understand all the elements of your cover to make sure you are always clear around the benefits and associated risks.

Critical Illness

Critical Illness Insurance pays out a tax-free lump sum if you’re diagnosed with a specific illness during the term of your product.

This policy is always helpful if you don’t have significant savings to fall back on. The value of the cover can also be customised to suit your personal needs.

At Future Balance we’ll support you to help calculate how much cover you need, to make sure the financial support for you and your dependents would be enough if you were unable to earn an income due to illness.

Considerations include:

• How much you earn each month
• How much remains on your mortgage, or any other debts
• How much you spend on monthly bills and necessities; and crucially,
• How much you can afford to pay for cover

The lump sum payout provides valuable financial support for you and your family. You can use it to pay household bills, cover loss of earnings or pay for things like private medical treatment.

Critical Illness

Income Protection covers anyone (employed or self-employed) who would suffer a loss of income if they were to become ill or injured, and unable to work.

It’s a long-term insurance policy that gives you a regular income usually until you retire, or you’re able to return to work, although shorter term policies are also available.

Income Protection offers peace of mind that you can continue to pay your bills, and that there is no impact on your current lifestyle.

It only covers events beyond your control, but you won’t be covered if you’re made redundant from your job or if you injure yourself deliberately.

Always consider how much you need each month to get by, so that you don’t risk being under-insured. Take into account all your essential monthly outgoings such as your mortgage, food, council tax and utility bills etc.

Before you take out any form of Income Protection cover, it’s worth finding out what other benefits you’re entitled to if you can’t work. By law, an employer must pay most employees statutory sick pay for up to 28 weeks, and after that, you may need to depend on state benefits. Check your employment contract and if you don’t have a copy then request one.

There are a few factors that affect the monthly premiums for Income Protection, making it a policy which is very much unique to everyone.

These are:

• The younger you are, the less expensive the policy is likely to be. Older people are more likely to suffer or get ill, therefore premiums increase
• The job you have will have a bearing on how much you pay. For example, premiums will be less if you are an office worker than if you are a construction worker, as office work carries less risk of injury
• If you smoke this will bump up the cost of cover
• If you have existing health issues or if you hold a particularly dangerous job, you might not be able to get insured at all, as insurers will consider you an elevated risk

There are additional protection products in the market which we’re always happy to chat through with you such as….

• Family Income Benefit
• Whole of Life assurance
• Private Medical Insurance

If you would like to have an informal chat about Protection and how you can be supported you in choosing the right product for your circumstances, get in touch with Chris today on 0330 122 9760 or e-mail at [email protected]