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Protection

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Which protection policy will provide a regular income as opposed to a lump sum, in the event of a covered illness?

In the event of a valid claim, income protection insurance pays a regular weekly or monthly income to those who are unable to work due to sickness or injury or those who have to switch to a lower-paid job due to sickness or injury. The main aim is to replace lost earnings, subject to a maximum limit.

What happens if you fail to disclose medical information which is requested on your life insurance application?

The whole point of taking out a protection policy is to protect yourself and your family, why would you want to pay premiums for a policy which may never payout?

Insurers take any non-disclosure of requested information very seriously and have the right to investigate further if they feel that one of their applicants have not told the truth on their application. Some insurers can look at any point request medical information from your GP, and if the dates or condition(s) have not been disclosed, they can cancel the application so you would have paid your premiums for nothing.

It is very important, to make a full disclosure with regards to your health and lifestyle to ensure that in the event of a claim, the policy will pay out the benefit (sum assured).

Which Life Insurance policy would you recommend that would repay in full a capital & interest (repayment) mortgage?

A decreasing term assurance is the least expensive of the term assurance policies and repays your mortgage debt in the event of death during the period of the loan (s, this is also because the sum assured reduces in line with the outstanding mortgage debt.

My father and brother had heart attacks in their 40’s, and my mother has been diagnosed with type two diabetes at the age of 35, how will this affect my life insurance monthly premiums?

All insurers will request information on your family (natural parents and siblings) medical history when insuring you. If your family members have type two diabetes, then some insurers may add a rating upon disclosure which means your monthly premium may increase. Insurers will also need to know about any history of heart attacks/stroke/angina or heart disease if a family member has both Diabetes and issues related to their Hearth than, you would likely be regarded as a greater risk.

Insurers also look at other factors such as your BMI, whether you have had any screenings for the condition(s) along with your age.

We will be able to indicate what your monthly payment may be, once we have completed all of our research so that you would know if an increased premium may apply and the reason for the increase.

To help you achieve the coverage, you require without going through the rigmarole of numerous applications; we can provide specific providers quotes that will offer the most favourable terms. You can then make a decision based on this, with no obligation to take the cover out.

Please remember: failure to disclose anything that is requested may result in the insurer cancelling your policy and not paying out.

Do you have to be over the age of 18 to have a Life Insurance policy?

There is a minimum age to buy life insurance; this limit can vary by insurers. Generally, the life insured will need to be at least 18 years old to take out a financial contract such as an insurance policy.

Does income protection take any other sources of income into consideration for pay-outs when you are unable to work?

Income protection only covers earned income and is not affected by other sources of income.

I would like to purchase life cover. However I do Shisha on an occasional basis, would this class me as a smoker and affect premiums?

Yes, smoking Shisha would class you as a smoker. Insurers would, therefore rate the premiums accordingly.

What’s the point of life insurance? I don’t think I will ever need it.

If your family is lucky enough to have a decent sized lump sum of money when you die, then you might not need life insurance.

The point of a conversation about protection is not to sell you something; it’s to evaluate your needs and more importantly advise you if you actually need it and affordability.

Our advisers will go through your individual or family circumstance and discuss this in detail with you.

I’ve had cancer, but this was some time ago, can I get life insurance?

Depending on the type of cancer, stage and how long ago you had your very last appointment before discharge, yes you may be able to get cover. Some insurers would like you to have been fully discharged from certain cancers for over 5 years, some longer.

During our fact finding stage, we will need to provide all of your medical information to the underwriting team who will let us know if they would be able to offer terms.

In all cases, the insurer will request further information from your GP.

Why have Private Medical Insurance?

This enables individuals to get private medical care when required, at a time and place which suits them, with a consultant or surgeon of their choice (this is not possible in the NHS) and the insurer covers all or most of the costs depending on the cover taken out.  Private Medical Insurance can help to avoid long waiting lists to see a specialist for treatment or diagnosis. This form of health insurance will typically only cover acute health conditions only.

What is the benefit of putting a life insurance policy into Trust and how much does it cost?

The benefit of placing a life policy into Trust is that it does not fall as part of your estate and the money is paid directly to the trustees. If the life insurance policy is not in Trust, it would be added to the deceased person’s estate and potentially cause an inheritance tax bill if the deceased nil rate band is fully used up.

For example, John is single and has a mortgage-free house worth £300,000 and a life insurance policy of £100,000 which is not in Trust. The value of his Estate is £400,000, minus his nil rate band of £325,000, means that £75,000 is potentially liable for Inheritance Tax (IHT). His beneficiaries would need to pay 40% tax on the £75,000 before they could inherit his estate.

As part of our advice and service, we do recommend that your policies go into Trust. The life insurers provide basic Trust forms which are free to use. If there is an existing policy, you need to request the relevant trust documents from your provider, and if you are setting up a new policy, this can be done at the time of application before the policy is put on risk.

Why is Income Protection important?

Income protection insurance is an insurance policy that provides a monthly benefit if you are unable to work due to accident or sickness and pays out until you return to work, the end of the policy term (usually your retirement age) or upon death, whichever is sooner.

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