Protection

Protection for you and your family

If you died or suffered a critical illness how would your family cope financially? No-one likes to think about dying but if you don’t consider it,you may leave your family suffering not just emotionally but financially as well.

That's why life insurance is so important; it can provide a cash lump sum which will help give your family an income or pay off the mortgage at a difficult time. There are a range of plans available and your TailorMade Financial Solutions Advisor can help you understand what each one has to offer. These include:

Life assurance

This type of policy pays out a lump sum on death minimising your family’s financial hardship. If you are diagnosed with a terminal illness and have less than 12 months to live, you will be paid the lump sum early to give you a chance to sort out your finances.

As an example most married couples believe that if they die without having made a Will all of their assets will pass directly to their surviving spouse. In most cases this does not happen and this can lead to unnecessary inheritance tax liabilities.

Critical illness

These policies pay out a lump sum on diagnosis of one of a number of specified critical illnesses. This could be used to pay off your mortgage and protect the long-term security of your family.

Income protection

An income protection policy pays you a monthly income if you suffer an illness or disability that prevents you from working for an extended period. This helps you to ensure you can continue paying your mortgage and other bills.

Mortgage Protection

These plans are designed to cover the life of your mortgage and pay a cash sum if you die during the term of the plan, if you become critically ill or if you have a specific operation. Cover decreases each month and is designed to reach zero by the end of your mortgage term.

All of these protection plans are designed to provide valuable benefits in return for regular payments throughout the term of the plan. These plans have no cash value at any time so if the plan is cancelled there is no money to be collected.

Protection of your home

Buildings and Contents Insurance

When insuring your property you have a range of options including:

Buildings only cover
Contents only cover
Buildings & Contents combined

Buildings and contents insurance is available to both new and existing mortgage borrowers and there are limits to the value of insurance you receive.

Mortgage Payment Protection

Taking out a mortgage is probably going to be your single biggest financial commitment. Mortgage insurance helps you cover your payments in the event of unemployment, accidents preventing you from working or sickness and disability. In any of these circumstances you may fall behind with your mortgage payments and you could end up losing your home. That is why borrowers are being encouraged to consider the advantages of taking out mortgage payment protection insurance.

Policies typically cover your payments for 12 months and can also include the cost of your buildings and contents insurance. They are available to both employed and self-employed applicants and can be either single or joint cover.