‘’Protection insurance can’t stop the unthinkable from happening, it can make dealing with the consequences a lot easier’’.
Researchers from Boston University’s School of Medicine and Harvard University’s T. H have found that hope and optimism may really help us to live longer - individuals with greater optimism are more likely to live longer and to achieve “exceptional longevity”—that is, living to age 85 or older. Optimism refers to a general expectation that good things will happen or believing that the future will be favourable because we can control important outcomes. We can never be sure what’s waiting for us round the next corner, but we should all hope it’s a great new job, a new baby or even a lottery win.
But sometimes, life throws the unthinkable at us. Many of us will know of someone who has died young or heard of someone’s battle to survive a serious illness.
Anyone who’s seen a family trying to deal with these things will know that the financial and emotional impact can be devastating. We think it’ll never happen to us, but sometimes it does. And while protection insurance cannot stop the unthinkable from happening, it can make dealing with the consequences a lot easier.
Life cover
This gives your family financial protection if you die. Most people who buy life cover buy just enough to pay off their mortgage but for most of us, our mortgage is only one of the many financial commitments we have. But is this really enough?
You can buy life cover that pays out as a lump sum or a monthly income to help cover the bills if you have to make a claim during the term of your plan. You can even combine both types of payment in one plan to give your family protection that could help cover the mortgage and that also provides the income they would need to live in the family home without you.
There are different types of life cover available from a wide range of insurers, so it is best to talk to a qualified adviser about your needs and budget.
Critical Illness Cover
Critical illness cover provides financial protection for you and your family if you become ill with one of the critical illnesses listed in the policy schedule. Most policies cover dozens of different conditions and disabilities.
The good news is that more and more people are surviving critical illnesses.
There are too many survival statistics to show them all, so we’ve chosen cancer as most of us know a friend or family member who has been affected by this at some time in their lives.
Critical Illness policies vary from provider to provider, can cover your children (if you want) or provide access to specialist medical service in the time of need. They are best put in place with the help of an experienced protection adviser, who can help you to navigate the complex world of policy terms and conditions covered by them.
Income Protection
Income Protection can provide a monthly income if you are unable to work due to illness or injury; this does not mean you have a critical illness but something severe enough to stop you from going to work for a prolong period of time.
The working world has changed dramatically in recent years. One thing remains constant however, and that’s the fact that most of us need to work to pay the bills and to enjoy all the good things in life like holidays, cars and meals out.
But bills don’t stop arriving – even if we are very sick. If you fall ill or have an accident and are unable to work, the sudden loss of income could be devastating.
Even if you don’t earn an income but look after the home all day, it would be very expensive to pay someone to do all the work that you do.
Many people think they could rely on money from their employer, their family or the state. But recovering from a serious illness can take a long time. How long would this money last? Sick pay from your employer might help but might only last a few weeks. The state provides Statutory Sick Pay and Employment and Support Allowance, but is this enough? Surprisingly few of us think about taking out protection.
Just 11% of people aged 18+ have critical illness cover and only 5% say that they have short term income protection.2
This is an income protection that would pay out for a set number of years rather than until retirement.
1 Source: Office for National Statistics, June 2021. 5-year relative survival rates for selected cancers, for adults diagnosed between 2013-2017 and followed up to 2018, England
2 Source: Income Protection, UK. Mintel, April 2021.
*Blog Source: Royal London, ‘’ All you need to know about protection’’.
Researchers from Boston University’s School of Medicine and Harvard University’s T. H have found that hope and optimism may really help us to live longer - individuals with greater optimism are more likely to live longer and to achieve “exceptional longevity”—that is, living to age 85 or older. Optimism refers to a general expectation that good things will happen or believing that the future will be favourable because we can control important outcomes. We can never be sure what’s waiting for us round the next corner, but we should all hope it’s a great new job, a new baby or even a lottery win.
But sometimes, life throws the unthinkable at us. Many of us will know of someone who has died young or heard of someone’s battle to survive a serious illness.
Anyone who’s seen a family trying to deal with these things will know that the financial and emotional impact can be devastating. We think it’ll never happen to us, but sometimes it does. And while protection insurance cannot stop the unthinkable from happening, it can make dealing with the consequences a lot easier.
There are 3 main types of cover available on the market for people looking to get a safety net over their own and their family financial needs.
Life cover
This gives your family financial protection if you die. Most people who buy life cover buy just enough to pay off their mortgage but for most of us, our mortgage is only one of the many financial commitments we have. But is this really enough?
You can buy life cover that pays out as a lump sum or a monthly income to help cover the bills if you have to make a claim during the term of your plan. You can even combine both types of payment in one plan to give your family protection that could help cover the mortgage and that also provides the income they would need to live in the family home without you.
There are different types of life cover available from a wide range of insurers, so it is best to talk to a qualified adviser about your needs and budget.
Critical Illness Cover
Critical illness cover provides financial protection for you and your family if you become ill with one of the critical illnesses listed in the policy schedule. Most policies cover dozens of different conditions and disabilities.
The good news is that more and more people are surviving critical illnesses.
There are too many survival statistics to show them all, so we’ve chosen cancer as most of us know a friend or family member who has been affected by this at some time in their lives.
According to Cancer Research UK, survival rates for cancer are increasing – and cancer survival has doubled in the last 40 years.1
Critical Illness policies vary from provider to provider, can cover your children (if you want) or provide access to specialist medical service in the time of need. They are best put in place with the help of an experienced protection adviser, who can help you to navigate the complex world of policy terms and conditions covered by them.
Income Protection
Income Protection can provide a monthly income if you are unable to work due to illness or injury; this does not mean you have a critical illness but something severe enough to stop you from going to work for a prolong period of time.
The working world has changed dramatically in recent years. One thing remains constant however, and that’s the fact that most of us need to work to pay the bills and to enjoy all the good things in life like holidays, cars and meals out.
But bills don’t stop arriving – even if we are very sick. If you fall ill or have an accident and are unable to work, the sudden loss of income could be devastating.
Even if you don’t earn an income but look after the home all day, it would be very expensive to pay someone to do all the work that you do.
Many people think they could rely on money from their employer, their family or the state. But recovering from a serious illness can take a long time. How long would this money last? Sick pay from your employer might help but might only last a few weeks. The state provides Statutory Sick Pay and Employment and Support Allowance, but is this enough? Surprisingly few of us think about taking out protection.
Just 11% of people aged 18+ have critical illness cover and only 5% say that they have short term income protection.2
This is an income protection that would pay out for a set number of years rather than until retirement.
1 Source: Office for National Statistics, June 2021. 5-year relative survival rates for selected cancers, for adults diagnosed between 2013-2017 and followed up to 2018, England
2 Source: Income Protection, UK. Mintel, April 2021.
*Blog Source: Royal London, ‘’ All you need to know about protection’’.
