Protection insurance – can you afford to be ill?
Many of us will know somebody who fell ill this year, suffered a bereavement or lost their job. We have seen first-hand the impact even a short absence from work or period of unemployment can have on our financial resilience if you don't have protection insurance - can you afford to be ill?
And yet, nearly a third of respondents to a recent survey10 say they would only take out protection insurance if they fell ill themselves. It seems that the attitude of ‘it won’t happen to me’ is stopping people from taking out vital cover.
Too little, too late?
Mortgage holders said they would only consider purchasing protection cover if they fell ill (31%), changed employment status (25%) or had an accident (24%). This would be too late as most policies do not offer backdated cover. The survey also revealed that one in seven (14%) survey respondents regretted not taking out a protection policy in the past.
Finding the right policy for you
Protection insurance doesn’t have to be hugely costly, and it can vastly improve your resilience to financial shocks. Our Insurance and protection fact file will help you consider the important things. Things which can be the difference between keeping and losing your home, and maintaining your family’s lifestyle.
Type of Plans
Life Cover Plans
Designed to help provide for your family in the event of your death during the term of the plan.
Critical Illness Plans
Which help protect your assets and your family should you suffer a critical illness.
* Income Protection Plans
To provide a monthly income if you’re unable to work until you return to work or reach your pre-determined retirement date.
Whole Life Plans
Which pay a guaranteed lump sum to your estate when you die.
* There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at https://www.moneyadviceservice.org.uk/en
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10MetLife UK, 2021