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› What Protection Policies Do You Need?
› Life Assurance
Life assurance pays a cash lump sum in the event that you should die during the term of the policy. This can be used to repay any liabilities and/or support your financial dependents.
Do you need life assurance?
Yes - if you have dependents
Yes - if you share the mortgage costs with someone else (joint mortgage)
No - if you have no dependents and it is not a joint mortgage (the lender will take possession of your house, sell it to get their money back and the rest goes to your estate)
No - if you have enough life cover already
› Critical Illness Cover
Critical illness cover is an insurance plan that pays out a lump sum if you are diagnosed with one or more of a list of specific illnesses. You do not have to die to claim.
Do you need critical illness cover?
Yes - if clearing the mortgage or other liabilities would be a priority in the case of serious illness
Yes - if you have dependents and no other household income to repay the mortgage
No - if you have enough funds available
› Income Protection Cover
Income protection policies pay a tax-free monthly income should you be unable to work as a result of an accident or sickness. The income is paid following an initial period of you being unable to work, until you are able return to work or till the end of the policy term.
Do you need income protection cover?
Yes - if your financial security is dependent on your ability to work and you would have no other source of income
Yes - if your financial security is dependent on your ability to work and you would only be in receipt of limited funds from your employer for a short period of time
No - if you have sufficient funds to meet your financial needs and/or your employer would continue to pay you sufficient income to meet your needs