What is Personal Protection?
Helping you navigate the complicated world of Life Insurance, Critical Illness cover, Income Protection and Family Income Benefit.
The term Personal Protection is more likely to conjure up an image of Kevin Costner in The Bodyguard than an insurance policy. In this instance though it refers to the collection of insurances designed to protect you and your loved ones in the event of sickness or death.
Kevin Costner is a nicer image right?
I get it. Thinking about life’s worst scenarios isn’t a pleasant task, but it is necessary. Getting the right Protection in place can at least reassure you that there won’t be any additional financial burdens if the worst should happen.
What are the different types of Personal Protection insurance?
Over the years we have written several blogs about the different protection products that are available so we thought it might be useful to do a round-up for you so you can see everything in one article – a whistle stop tour of the protection market, just for you.
But first, a little diagram that hopefully summarises the roles of everything.
Let’s start with the insurance policies that pay out when you die
Life Insurance
Life insurance is a way of making sure your loved ones are financially supported when you die. You pay a monthly amount to an insurance company and if you should die unexpectedly then your loved ones receive either a lump sum or a regular payment.
If you have financial commitments such as a mortgage, and you also have people who are dependent on your financially, it is sensible to have some sort of cover in case the worst should happen.
There are two main types of life insurance: term (which covers you for a specific number of years) and whole of life (which covers you for the rest of your life). We have lots of information about both of these types of cover, along with the most common FAQs on our website here.
But what if I’m young and healthy? If this is you then you might be wondering if you need life insurance at all. We’ve covered this in detail in this blog.
Family Income Benefit
Family Income benefit is a type of insurance that provides your loved ones with a regular tax-free income in the event of your death. It is popular with those who have young children who will be financially dependent on them for a number of years.
We wrote a blog about how family income benefit can ease the burden of bills and budgeting for families here.
Our website covers Family Income Benefit in a lot more detail, along with useful FAQs.
And now for the insurance policies that pay out when you are sick
Critical Illness Cover
Critical Illness cover helps to support you and your loved ones if you’re diagnosed with a specific illness or disability. It pays out a tax-free lump sum and is designed to help you and your family focus on your recovery without the added worry of paying the bills which may not be covered by your current sick pay or benefits.
We’ve answered most of our customers frequently asked questions on our website such as the advantages and disadvantages, what it covers and the amount you need.
There’s also a useful blog here which goes into a bit more detail about whether you might need this type of cover.
Income Protection
Income protection supports you financially if you can’t work due to illness or injury. It pays you a monthly income (based on a percentage of your salary) which can be used to help pay your bills and maintain your lifestyle so you can focus on recovering and getting back on your feet rather than worrying about making ends meet.
It can be particularly useful if you are self-employed with financial obligations and dependents, or if you don’t feel you have sufficient savings to cover an extended period of leave.
We’ve outlined the advantages and benefits, and a whole host of FAQs such as how it differs from critical illness cover and whether or not it is taxed. You can find all of this on our website here
We’ve written specifically about how income protection may be worth considering if you are renting your property which you can find here.
Some policies even give you bonuses that you might not know about
A lot of our customers are surprised that their insurance policies also come with complimentary health and wellbeing services such as virtual GP appointments and mental health support. In this blog we outline examples of this from AIG, Exeter, LV and Vitality.
How Downton Mortgages & Financial Services can help
The personal protection market can be confusing. It’s easy to miss out on the right sort of cover, or to take out cover that you don’t need. By speaking to our protection advisers, we’ll ask you all the right questions so you’re clear on the insurance options that best suit your circumstances. But more than that, we’ll also manage the whole application process for you and remind you when your policy is up for renewal.
If this sounds like the sort of service that would help you right now, then get in touch with us at info@downtonmortgages.co.uk for a no obligation chat.
How we will work with you
Sometimes it’s nice to know what the process will be when you start working with an insurance broker. We like to keep things really simple while not compromising on how thorough we are:
- Information gathering – First we’ll ask for key information about you, your plans and your budget so we can understand what is important to you.
- Full review – With your priorities and needs taken into consideration, we will research the market and recommend the type of cover you should put in place. We will work with you and your budget to find the right cover that meets your needs while still being comfortably affordable.
- We take care of everything – Once you’ve decided which insurance you want to take out, you can put your feet up and let us take care of everything from start to finish, ensuring forms are completed properly and all the relevant documentation is supplied on time.
There is no obligation to proceed with any cover that’s recommended but we will always ensure you have the right information so you can make an informed decision for you and your family.
Who we are
We are a small, friendly and local team. You can find out more about us on our website but here’s a quick introduction:
Clara Downton
Mortgage & Protection Insurance Adviser. Qualified CeMAP and CeRER. Member of Equity Release Council
I grew up in Bishop’s Stortford and I set up Downton Mortgages & Financial Services in 2019 to help people feel more confident choosing their mortgage. If you’re looking for a friendly, local mortgage expert who has a knack for simplifying complicated things, then get in touch.
Shannon Savedge
Protection Adviser. Qualified CertPRO.
I’m originally from Orlando, but I’ve been living in the UK for over a decade. I joined Clara at Downton Mortgages & Financial Services in 2021 after a long career with the insurance company MetLife. I’m here to help you find the right home or personal insurance for you and your loved ones.
The important legal bits…
Please note for these insurance products, terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.
The information contained within was correct at the time of publication but is subject to change (May 2024).