family protection advisors, essex

The financial pressures can be heightened when children are involved, and the loss of a loved one and the income they bring into the household, can affect the future of the remaining family. For this reason life insurance is essential to help ensure that their future is protected, and any remaining family/dependants have the continued financial resources to maintain their standard of living and continue life the best they can.

life insurance and assurance

The average man in the street assumes that Life Insurance and Life Assurance are names for the same form of insurance.

Life Insurance provides you with insurance cover for a specific period of time (known as the policy’s “term”). Then, if you were to die whilst the policy is in force, the insurance company pays out a tax-free sum.

if you survive to the end of the term, the policy is finished and has no residual value whatsoever. it only has a value if there is a claim.

Life Assurance is different. It is a mix of investment and insurance.

A Life Assurance policy pays out a sum equal to the higher of either a guaranteed minimum underwritten by the policy’s insurance provisions or its investment valuation. The value of the investment element is then reliant on the insurance company’s investment performance and length of time you have been paying the premiums.

Each year the insurance company adds an annual bonus to the guaranteed value of your life assurance policy and there is normally an extra “terminal bonus” at the end.

Therefore, as the years go by your life assurance policy increases in value as the investment bonuses accumulate.

If you were to die during a Life Assurance policy’s term, the policy pays out the higher of either the guaranteed minimum sum or the accumulated value of the annual investment bonuses. However, if you are still living when the policy terminates, you usually get a bigger payout.

income protection

An Income Protection policy helps to cover your financial outgoings in the event of either sickness, accident or unemployment.

Ill health and unemployment are worrying enough without suffering the additional stress of inadequate income at a time when expenses related to healthcare or travel may actually increase.

Whether you are single, or the family breadwinner, Income Protection will help to relieve the financial burden while you get your life back on track.

accident cover

Personal accident cover is designed to provide financial help if you have a serious accident or injury, or if you suffer a fatal accident.

With personal accident cover, you pay a monthly premium which usually remains the same during the length of the policy. You will receive a cash benefit if you have an accident or receive a serious injury during the policy term.

The cover also helps to ensure your family are provided for if you have a fatal accident.

Personal accident insurance usually gives you coverage almost anywhere in the world (T&Cs apply) and medicals aren’t normally required before you take out the cover. You may also be able to add your children to your policy – but they will most likely have a reduced level of cover. You must keep paying your premiums or you will not be covered. If you cancel your plan or stop paying your premiums, you won’t get back any payments you’ve made.

Some insurers allow you to pick different levels of cover. A higher level of cover will provide a larger cash payout in the event of accident or fatal injury.

Any UK resident aged 18-69 can take out personal accident insurance. This type of insurance is suitable if you’re employed or self-employed and want to protect your earnings, or maybe you work with machinery or at heights and want financial protection in the event of an accident.

There are usually some instances where you won’t be covered by personal accident insurance, which mean you won’t be eligible for any cash benefits. Examples include:

  • If your injuries are a result of sickness or disease

  • If you deliberately or recklessly expose yourself to danger

  • If your injuries are sustained while you’re under the influence of alcohol or certain drugs

  • If your injuries are self-inflicted or if you attempt to commit suicide

  • If your injuries are sustained while you’re committing or attempting to commit a crime

  • Stress fractures, sprains and strains.

finding us

Southend Office
453 Southchurch Road,
Southend-on-Sea, Essex, SS1 2PH
Tel: 01702 667 315 | Fax: 01702 442 180

Billericay Office
Unit 28, Barleylands,
Barleylands Road, Billericay, Essex, CM11 2UD
Tel: 01277 886 598