Protection

Your protection needs will vary depending upon where you fall in the normal cycle of life, and what liabilities you are needing to cover.

Typically you will require different types and levels of protection at different stages of your life.

• Young, single
• In a partnership or married
• New parents
• Parents with school age children
• Parents with university age children
• Approaching Retirement
• In retirement
• A business

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What can Gregory Adam Financial Management Offer?

We can provide a full review of your personal situation, taking into account, your assets and liabilities, your age, your health and your personal circumstances.

• We can provide you with competitive quotations sourced from the whole of the market.
• We can assist you with the necessary documentation, and any required trust arrangements that may be recommended.
• We can review any existing arrangements, offering advice for changes where necessary.
• In the event of a claim we can help you with the process which can at times be onerous in what are likely to be difficult circumstances for yourself.
   

Immediate Illustrations

If you would like to have an indication of the cost of protection cover, you can access on online quotations via our online services page.

Income Protection

An income protection policy is designed to make a payment to you if you are unable to work due to long term sickness or accident.  Most policies are set up to cover up to 50% of earnings, and this is paid to you tax free in the event of a valid claim.  A policy can be set up to commence payment after a deferred period of as little as one day, or as long as 52 weeks sickness.  The longer the deferred period the cheaper the cost.

The policy will run until the termination date, which is normally set up to be your retirement age.  In the event of a claim, the claim payment will continue until the sooner of return to work or the retirement age on the policy.

Critical Illness Protection

A critical illness policy makes a lump sum payment if during the policy term you suffer (and survive) a stated critical illness.  The Association of British Insurers (ABI) has set out guidelines for insurers to follow in the definitions of critical illnesses.  Commonly the following illnesses are covered (although this can vary between insurers):
 

• Alzheimer’s disease before age 60 – resulting in permanent symptoms
• Aorta graft surgery – for disease
• Benign brain tumour – resulting in permanent symptoms
• Blindness – permanent and irreversible
• Cancer – excluding less advanced cases
• Coma – resulting in permanent symptoms
• Coronary artery by-pass grafts – with surgery to divide the breastbone
• Deafness – permanent and irreversible
• Heart attack – of specified severity
• Heart valve replacement or repair –with surgery to divide the breastbone
• HIV infection – caught in the UK from a blood transfusion, a physical assault or at work in an eligible occupation
• Kidney failure – requiring dialysis
• Loss of hands or feet – permanent physical severance
• Loss of speech – permanent and irreversible
• Major organ transplant
• Motor neurone disease before age 60 – resulting in permanent symptoms
• Multiple sclerosis – with persisting symptoms
• Paralysis of limbs – total and irreversible
• Parkinson’s disease before age 60 – resulting in permanent symptoms
• Stroke – resulting in permanent symptoms
• Terminal illness
• Third degree burns – covering 20% of the body’s surface area.
• Traumatic head injury – resulting in permanent symptoms

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Life Assurance Protection

This can include policies that are set up on a single or joint life basis with the sum assured paid on death within the term.  The sum assured can remain level over the term of the plan, or can reduce (often known as mortgage protection cover).  The sum assured could be paid as a lump sum or in certain cases in monthly or annual instalments (family income benefit).  It is normal for term based cover to be selected for mortage, loan or family protection, and whole of life cover for inheritance tax planning.

Term based cover can be very inexpensive, and can provide immediate peace of mind in particular for loan protection purposes.

It is also possible to take our whole of life cover, which is cover that runs for the rest of your life, and will definitely make a payment on your death, this is normally used for inheritance tax planning purposes, as it can be more costly than term based cover for loan or family protection purposes.

How Much Cover Should I have?

This very much depends on your own circumstances, which Gregory Adam Financial Management will assess with you.  Commonly you may require the following levels of cover:

• Income Protection – 50% of your salary, until your normal retirement age
• Critical Illness – up to the level of your mortgage, for the term of your mortgage loan (can be set up on a reducing basis)
• Mortgage Life Assurance - up to the level of your mortgage, for the term of your mortgage loan (can be set up on a reducing basis)
• Family Protection Life Assurance – typically at least 4-6 times your normal annual income, plus funds to cover any additional loans or liabilities (eg. School fees)

Get an immediate quote via our online online services page.

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