Protection services
Discover more about our extensive range of professional services. We constantly update this page, but if you still can’t find what you’re looking for, please feel free to get in touch with us – we will be more than happy to help.
What is protection and why might you need it? (Layla to add)
Life insurance
Life insurance is a contract between an individual (the policyholder) and an insurance company. In exchange for premium payments, the insurance company promises to pay a specified sum of money to designated beneficiaries upon the death of the insured person.
The primary purpose of life insurance is to provide financial protection and security to the beneficiaries, such as family members, by replacing lost income and covering expenses that may arise after the insured's death.
Life insurance is also commonly used to protect your mortgage to allow you to leave a debt free estate to your loved ones.
Family income benefit
Family income benefit (FIB) insurance is a type of life insurance designed to provide a regular income to the beneficiaries of the policyholder in the event of their death, rather than a lump sum payment. This type of insurance ensures that the dependents receive a steady stream of income for a specified period, helping to replace the deceased's lost income and maintain their standard of living.
FIB can also be set up in the event of the policy holder being diagnosed with a critical illness, as specified in the policy. It can provide a consistent income, which can be easier to manage than a lump sum, ensuring ongoing financial stability for daily living expenses, mortgage payments, education costs, and other needs.
FIB insurance often has lower premiums compared to traditional term life insurance with an equivalent lump sum benefit because the insurer is spreading the payout over time.
Family income benefit insurance is especially useful for families with young children or dependents who rely on the policyholder's income for their day-to-day expenses. It provides peace of mind that loved ones will have financial support in the event of the policyholder's death or diagnosis of a critical or serious illness.
Income protection
Income protection insurance is a type of insurance policy that provides you with a regular income if you are unable to work due to illness or injury. It ensures that you have a steady income stream to cover living expenses and financial commitments while you are unable to earn a salary.
The policy pays out a monthly benefit, which is typically a percentage of your pre-tax income, usually around 50-70%. This continues until you are able to return to work or until the end of the policy term.
The payments begin after a specified waiting period, known as the deferred period, which can range from a few weeks to several months. You choose the length of this period when you take out the policy, depending on when you will need the monthly benefit to pay out. This can be set to start after your employers sick pay benefit has started for example.
Or if self employed, you can ensure the benefit pays out after 1 or 4 weeks.
Income protection insurance is particularly valuable for self-employed individuals, those without significant sick pay benefits from their employers, or anyone whose financial obligations would be difficult to meet without their regular income. It provides financial stability and peace of mind, ensuring that you can focus on recovery without the added stress of financial difficulties.
The benefit period for income protection insurance refers to the length of time the policy will pay out benefits if you are unable to work due to illness or injury. The benefit period can vary significantly depending on the policy and the insurer. Here are the common options:
Short-Term Benefit Period- Typically lasts for a few months to a few years, such as 1, 2, or 5 years. This option may have lower premiums but will only provide coverage for a limited time.
Long-Term Benefit Period- Continues until a specified age, such as 60, 65, or 70, or until you can return to work. This provides more comprehensive coverage but usually comes with higher premiums.
Critical illness cover
Critical illness cover is a type of insurance policy that provides a lump sum payment if the policyholder is diagnosed with a serious illness listed in the policy. These illnesses typically include cancer, heart attack, stroke, and other life-threatening conditions. The purpose of this cover is to help the policyholder manage the financial impact of such illnesses, which might include medical expenses, rehabilitation costs, or even household expenses if the person is unable to work. The payout can be used at the policyholder's discretion to alleviate financial stress during a difficult time.
There are several types of critical illness cover, each with its own features and benefits. The main types include:
1. *Standalone Critical Illness Cover*: This type of policy is solely for critical illnesses and provides a lump sum payment if the policyholder is diagnosed with a specified critical illness. It is independent of any other insurance policies.
2. *Combined Critical Illness and Life Insurance*: This policy combines critical illness cover with life insurance. It pays out either on diagnosis of a critical illness or on the policyholder's death, whichever occurs first. This type of policy often appeals to those who want comprehensive coverage in a single plan.
3. *Children's Critical Illness Cover*: Some policies include cover for the policyholder's children, either as part of the main policy or as an optional add-on. It provides a payout if a covered child is diagnosed with a critical illness.
Each type of cover has different benefits and may be suitable for different circumstances. It's important to carefully review the terms, conditions, and coverage details before choosing a policy.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Registered in England and Wales
Blue Herring Mortgage & Protection Services Ltd is an Appointed Representative of PRIMIS Mortgage Network, a trading
name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority.
The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at
consumers based in the UK
Registered office address: 29 Corrie Close, Wellingborough, England, NN8 1GA
Registration number: 13049151
Trading address: 29 Corrie Close, Wellingborough, England, NN8 1GA
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For our advice services, we will charge a fee of between £0 minimum and £999 maximum.
Our typical fee is £399. The amount charged is dependent on the amount of research and administration required and
will be discussed and agreed with you at the earliest opportunity. The fee is payable on application.
If we charge you a fee you will not receive a refund if your mortgage or loan does not go ahead.
We will also be paid a procuration fee by the lender.
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