Protection

The right cover at the right time changes everything.

Protection is the part of financial planning most people put off. It feels complicated, it's not urgent until it is, and it's easy to assume that whatever you took out years ago is still doing the job. Often it isn't.

I work with clients in two ways on protection. I can set up new cover for those who have nothing in place, and I can review existing policies for those who want to know whether what they have is still right for them. Both matter. Both could make a significant difference to you and your family.

Why a review matters

Most people who have protection took it out when they got their mortgage. Since then, things have changed. Your income may have grown. You may have had children. Your mortgage balance has reduced. Your partner may now work or may have stopped working. The cover that made sense five or ten years ago may have gaps today, or you may be paying for more than you need.

A protection review costs nothing and takes less than an hour. I'll look at what you have, ask the right questions about your current situation, and give you an honest view of whether your cover is still fit for purpose. If it is, I'll tell you. If it isn't, I'll show you what needs to change and what it would cost.

Types of protection

Life insurance
Pays out a lump sum on death. Used to clear a mortgage, replace lost income or provide financial security for dependants. Can be set up on a decreasing basis to follow your mortgage balance or on a level basis to provide a fixed sum.

Critical illness cover
Pays out a lump sum on diagnosis of a specified serious illness such as cancer, heart attack or stroke. Gives you financial breathing room at the worst possible time. Can be combined with life insurance or taken as a standalone policy.

Income protection
Replaces a proportion of your income if you are unable to work due to illness or injury. Unlike accident, sickness and unemployment cover, income protection typically pays out for as long as you are unable to work, up to the end of the policy term. This is one of the most valuable and most underused types of cover available.

Accident, sickness and unemployment cover
Covers your mortgage or other outgoings for a set period, typically 12 or 24 months, if you are unable to work due to accident, sickness or redundancy. Shorter term than income protection but often more affordable.

Family income benefit
Rather than a lump sum, pays a regular tax free income to your family if you die during the policy term. Often more affordable than a level term policy for the same level of monthly benefit and can be easier for families to manage than a large lump sum.

Whole of life insurance
Unlike term insurance which covers a fixed period, whole of life insurance pays out whenever you die. Often used for inheritance tax planning or to leave a guaranteed sum for dependants.

Protection for the self employed

If you are employed and off sick, your employer continues to pay you, at least for a while. If you are self employed and off sick, your income stops immediately. There is no sick pay, no employer backstop, no safety net unless you have built one yourself.

Income protection is arguably the most important type of cover for anyone who is self employed. The cost is often lower than people expect and the benefit of having a guaranteed income if you cannot work is significant. If you are self employed and have no income protection in place, this is the conversation we should be having.

Who I work with

  • Clients with no protection in place who want to start from scratch

  • Clients with existing cover who want an honest review

  • Self employed clients who need income protection

  • Clients who have recently taken out a mortgage and want to make sure they are covered

  • Families who want to ensure their home and income are protected

  • Clients approaching remortgage who want to check their cover still fits

FAQs

I already have cover through my employer. Do I need my own policy?
Employer provided cover, typically death in service or group income protection, is a valuable benefit but it has significant limitations. It only covers you while you are employed by that employer. If you leave, are made redundant or are dismissed, the cover ends immediately. Your own personal policy stays with you regardless of your employment situation. I'd always recommend understanding exactly what your employer provides and whether it is enough before relying on it entirely.

How much life insurance do I need?
There is no single answer. A common starting point is enough to clear your mortgage plus replace your income for a number of years, but the right amount depends on your circumstances, your dependants, your partner's income and your outgoings. I'll help you work through what you actually need rather than just selling you the maximum available.

What is the difference between life insurance and critical illness cover?
Life insurance pays out when you die. Critical illness cover pays out when you are diagnosed with a specified serious illness. You could have a heart attack, survive it, and be unable to work for months or years. Life insurance would not pay out in that scenario. Critical illness cover would. Both serve different purposes and many people benefit from having both.

Is income protection worth it if I have savings?
Savings provide a buffer but most people's savings would not sustain them for long if they were unable to work for six months, a year or longer. Income protection fills that gap. It can be set up with a deferred period that aligns with how long your savings would last, which reduces the cost. It is one of the most valuable types of cover available and the one most people overlook.

I'm self employed. Can I still get income protection?
Yes, and it is arguably more important for you than for anyone else. Your income stops the moment you stop working. Income protection replaces a proportion of your income if you are unable to work due to illness or injury, for as long as you are unable to work up to the end of the policy term. The cost depends on your occupation, your age and the deferred period you choose. Get in touch and I'll give you a clear picture of what's available and what it would cost.

Will my existing policy still be valid after a remortgage?
Your existing life insurance or critical illness policy is separate from your mortgage and remains in place after a remortgage. However it is worth checking that the sum assured still covers your new mortgage balance and that the remaining term still aligns with your mortgage term. A remortgage is a natural trigger point for a protection review.

What if I have a pre-existing medical condition?
Most protection policies involve underwriting, which means the insurer assesses your health before offering cover. Pre-existing conditions may result in an exclusion, a higher premium or in some cases a declined application. It is not always the barrier people expect. I work with a range of insurers and will find the most suitable options for your situation.

How do I know if my existing cover is still right?
The honest answer is that most people don't. That's exactly why a review is worth doing. If your income, family situation, mortgage balance or employment status has changed since you took out your cover, there is a good chance it needs updating. Get in touch and I'll take a look.

What does a protection review involve?
I'll ask you about your current policies, your circumstances, your income, your dependants and what you are trying to protect. I'll then assess whether your existing cover is still suitable and whether there are gaps or areas where you are over or under insured. I'll give you a clear honest recommendation. If your existing cover is fine I'll tell you that. If it isn't I'll show you what needs to change and what it would cost.

Is there any cost for a review?
No. A protection review is completely free. I receive commission from the insurer if you take out a new or amended policy. There is no charge to you for the review itself regardless of whether you proceed with any changes.

The information on this page is intended as a general guide only and was accurate at the time of writing. Policy terms, premiums and insurer criteria can change. Please get in touch for current and personalised advice.

Ready to get started?

No obligation to get in touch. Let's have a conversation about what you need.

Book a free 15 minute call