Call
0121 213 4756
Vass Koni – VK Financial, Director
Protection is something that you put in place to protect you, and your loved ones, in the event that you are unable to work due to illness, or in the event that you pass away.
It’s easy to overlook protection as a necessity, as the “worst case scenario” discussion isn’t something we like to contemplate. Having protection policies in place however, is a valuable safety net that people cannot do without.
The price cost of protection is obviously a factor. However, price does not always equate to adequate cover. There are many comparison sites offering you the cheapest form of cover but that may not be the right cover for you. Many providers also offer additional services and partial covers for free and some extra benefits for an additional premium. You will not know about these options unless you speak to a qualified advisor and we can help you decide what is best for you. The most valuable discussion you can have is one that addresses how your family life can continue without disruption in the event of a claim.
Check out the explainer video below from Aviva for further clarity on the types of cover you should consider, it is worth five minutes of your time.
Life Insurance
Confronting our own mortality is never a pleasant thought. But what happens if you aren’t here tomorrow and who does that affect? How much is protecting against that situation worth to you?
Life Insurance policies offer insurance cover for a chosen policy length. A life insurance pay out is tax-free, and provided that the premiums are up to date, a claim can be made on the death of the insured person.
Everyone’s circumstances are different and not everyone needs the same level of cover for the same amount of time. Age and health will be determining factor on how much you pay. You can also set up your plan on a level term basis (where the cover stays the same throughout the life of the plan); on a reducing basis (if for example you only want to ensure that your mortgage is repaid); or an increasing basis if you want the level of your cover to keep pace with say inflation or average earnings, without having to take out new policies for increased amounts.
Critical Illness Cover
Diagnosis of a critical illness is much more commonplace and has a financial impact on families that is often overlooked. “Four in five people with cancer are affected by the financial impact of cancer, on average incurring costs of £570 per month”. (source: Macmillan Cancer’s Hidden Price Tag).
‘Critical Illness policies may not cover all definitions of a critical illness, and the scope of coverage may vary from policy to policy’
Critical Illness cover can help minimise the financial impact on you and your family if you become critically ill. Adding it as an option when you take out Life Insurance, can give you the extra protection and the peace of mind you may need.
The most common critical illness claims centre around cancer diagnosis, heart attack, stroke and multiple sclerosis but most providers will cover many more illnesses.
Partial claims are also possible as are a range of free covers for your children too. And with additional benefits also included such as counselling and support services as well as access to GP services or second medical opinions, a lot of the cover available is not just about the lump sum cash payment that comes on a successful claim.
Income Protection
If you are unable to work due to sickness and have no alternative cover in place, the UK Government will step in with Statutory Sick Pay (SSP). The payment rate for 2023/24 is £109.40 per week for 28 weeks. How would that help you?
‘‘An Income Protection policy is not a savings or investment product, and most do not have a cash value unless a valid claim is made.’’
Loss of income due to being unable to work as a result of sickness or accident can add stress to a period already laden with heightened anxiety.
And when you bear in mind that one of the most common reasons for claims on an income protection policy is mental health related issues you can see that being off work can happen to anyone.
If your employer offers you cover for a certain period then that is great. We can factor this in when calculating the most appropriate policy for you. Employee sickness benefits are usually for a pre-determined period of time and usually for a percentage of your salary.
This benefit can also be lost if you change employer. Having an external policy that ties into your work benefits can safeguard your income if you are unable to work. Talk to one of our advisors about how an income protection policy can help you.
Business Protection
If you run your own business then taking appropriate action to ensure the continuity of your business at times of distress is just as important.
‘The Financial Conduct Authority does not regulate some aspects of business protection’
If you are a business owner we can help you put a policy in place to cover a number of eventualities such as:
- Shareholder Protection – to safeguard the business in the event of the death or illness of a director/shareholder.
- Loan Protection – to ensure that the business debt is covered in the event of the death or illness of a director/shareholder/partner.
- Key Person Cover – to safeguard the business in the event of the death or illness of a key employee of the business.
- Relevant Life Cover – if you run your business as a limited company you could set up the equivalent of “death in service” benefit and have the company pay the premiums for you.
Get in contact with us today
Speak to us about any of the services that we offer.
Thomas Anthony Financial Services Limited, registered in England no. 05065805. The company is registered at 573 Chester Road, Sutton Coldfield, W Midlands B73 5HU.
VK Financial is a trading style of Thomas Anthony Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under no.993172 at https://register.fca.org.uk
The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain, and are not satisfied with our response to your complaint you may be able to refer it to the Financial Ombudsman Service which can be contacted here https://www.financial-ombudsman.org.uk/contact-us
