Are YOU covered for the things that really matter?

Insurance

Lloyd French of Delaunay Wealth Management presents his jargon-free guide to everything you ever wanted to know about insurance.

OK, don’t stop reading.  Insurance isn’t most people’s idea of an exciting blog topic.  I can’t deny that.

But, in my view, there are certain things in life that aren’t just useful to have, they’re essential.  For example, you need a roof over your head.  You need money in your life.  Getting the right type of cover to make sure you keep these things – again, in my opinion, is pretty much indispensable.

Why?

Because we never know what the future holds.  Especially if your income supports a family, it’s good to know that should the worst happen, the worst won’t happen – if you see what I mean.  Peace of mind is priceless.

Protection in Difficult Times

Great news. Amazing news, in fact.  A vaccine to protect us against Covid-19 is on its way very soon.  What a relief.  2020 hasn’t exactly been the best year ever, has it?  If you’ve lost someone, first and foremost – please accept my condolences.

We’ve become aware of our mortality, it seems.  Our senses have been heightened to our health and how fragile it can be.  We shouldn’t take our wellbeing for granted, so in light of our current circumstances I thought I’d put together a high-level guide to the insurance cover that Delaunay offers from a wide range of insurers.

Do get in touch for more information.  (You can reach us on 0345 505 500).  We’re not backwards in coming forwards on “sensitive” subjects.  And, we’d be happy to start some useful, honest discussions between you and your partner about longer-term plans.

Your future is important, and we’d like to help protect it.

Perhaps you could have a think about a few, “What would happen if…” scenarios.

Important: it’s not possible to offer a definitive answer regarding cover for Covid-19. There’s a multi-faceted prism of angles here, so it’s best to get in touch with us to find out more.

So, what Types of Insurance do We Offer Advice on?

Firstly, our recommendations are based on a range of relevant products that are suitably diversified in terms of type and provider.  This ensures that your objectives can be suitably met.

There are 3 types of insurance about which we can offer advice:

  • Income Protection
  • Critical Illness Cover
  • Life Insurance

Let’s start with:

Income Protection

How are you today? Feeling OK?  That’s good.  If you’re a busy contractor, a well-valued employee or a self-employed professional, getting ill, or being injured in an accident probably isn’t on your To Do list.  Nor does it feature in your life plans.

But, it could happen to you.

Simply defined, income protection is a type of insurance policy that will pay out if you’re unable to work because of sickness or injury.  There are several different products on the market, with various definitions, restrictions and caveats, so talk to us about the best one for you. After a deferred period, you’ll receive a monthly income equivalent to between 50% and 70% of your gross annual salary.

Critical Illness Cover

Broadly, this is a tax-free lump sum that you’ll receive if you’re diagnosed with a serious illness that’s covered by your policy.  And again, these vary.  Should you be diagnosed with something that’s not covered, your insurance company won’t pay out, so take good advice – preferably from us.

Cover length can be flexible (short or long-term), and children are covered, too – should you so wish.

Life Insurance

This is more straightforward – less nuanced if you like.

Life insurance is cover to support your loved ones in the case of your death.  Not a pleasant thing to consider, but sadly, sudden death can and does happen to the families least expecting it.

Although life insurance is perhaps more clear-cut, there are still distinct types of policy cover options, for example level term life, decreasing term life, family income benefit, whole of life and joint life.  Don’t worry about these, we’ll talk you through which choices could be best for you.

You may not need life insurance if you have a “death in service” benefit from your employer. However, as may sound obvious if you leave your job you won’t be covered.

Have a think about your nominees, their everyday living costs, and even the likely cost of your funeral.  Also, you could add Critical Illness cover as a “bolt on” option.

By the way, life insurance isn’t private health insurance.  They’re quite different.  The latter pays for any private medical treatment you may need directly to the healthcare provider.

Regarding Critical Illness Cover and Life Cover

Often, these payments are used to pay off a mortgage – frequently most people’s biggest liability.  For your family, this settlement means that they now own the house outright, offering immense peace of mind at a painful time.

Important Things to Consider

OK, let’s get super-practical here.  We’ll have to ask some questions, some of them quite personal, intrusive even.  However, be scrupulously honest.  Your pay-outs could be affected if not.

  • Do you smoke? If so, you may be surprised to learn that you can get cover, but that it could put your premiums up. (It’s best to stop anyway, but you don’t need me to tell you that.)
  • You’ll have to declare an existing health condition if you have one. Otherwise, your claim could be turned down if something comes to light not previously flagged up.
  • You may also have to provide information about your current savings, your main outgoings, the income you’ll need to live on, and what your hobbies For example, do you jump out of planes? Go gliding? Or, scuba diving?  If so, how often – that type of thing.  I’m sure you can understand why.

Is now the time to think about insurance?

Yes, the time is now. If you leave it too late to think about the right cover, you may not get the best options.  “Too late” could be when or if your health starts to become unstable, or if you are close to retiring.

Share with us what you want to happen should you need to claim.  For example:

Are you both working? What about childcare? What’s your ideal, best-case scenario?

Honestly, it’s good to talk. Perhaps our recommendation should be:

Plan for the worst.  Expect the best.

Not a bad philosophy for life in general, I think.

 

If premium payments are not maintained, the benefits of the plan will be put at risk. If premium payments cease altogether, the benefits of the plan will cease. The cover may be less than you need if you do not review it regularly.