Protection Solutions

Critical illness cover pays a tax-free lump sum if you are diagnosed with a critical illness during the policy term. You decide on the length of the policy: many people choose to have coverage until their kids have flown the nest until the mortgage is paid or until they plan to retire. Think of critical illness cover like car insurance: you pay every month or year for it and hope you never need to use it, but you feel better knowing it is there, just in case. All critical illness covers include the major serious illnesses you might suffer from - coronary artery bypass, major heart attack, kidney failure, major organ transplant, multiple sclerosis, stroke and a defined set of specific cancers.

As long as you keep up with the payments on your premiums (this can be monthly or annually), then you will be covered if you are injured or diagnosed with an illness that is specified on your policy. Once you are diagnosed, you will normally receive a one-time, tax-free payment that you can use to either replace the income you have lost from being off work, pay for medical bills, or make necessary changes to your home.

Make sure you check your policy wording carefully, as there may be a deferred period, which means that you will not receive your payout immediately on the diagnosis. You may need to wait for an agreed period before you can make your claim. It is important to know that critical illness and terminal illness are classed differently by insurance providers. Terminal illnesses (defined as a life expectancy of fewer than 12 months) are excluded from critical illness cover, so you should consider taking out life insurance instead if that is important to you.

Please be careful to check exactly what you will be covered for when agreeing to your policy.

Do I need critical cover?
Please check:
1. Whether you already have some illness insurance combined with another insurance policy like a life insurance policy, or with your mortgage, which covers you for serious illness?
2. What benefits your employer pays out if you can not work because of ill-health or disability?
3. Whether you have savings you can use instead of insurance?
4. Is this the most suitable type of illness insurance for me?

Check out all the different types of illness insurance to see which one would suit you best. For example, income protection insurance usually includes a greater range of illnesses and conditions than critical illness insurance. It may cover you for a more extended time if you can not work. However, it will probably cost you more than critical illness insurance.

If you are worried about what might happen if you become ill or lose your job, income protection insurance could offer you and your family security. Income protection refers to a family of insurance products that ensure you can continue to meet your financial commitments if you are forced to take an extended break from work. Income Protection Insurance will provide you with financial support if you find yourself unable work, due to illness or accident or if you are made redundant. Income Protection Insurance will pay you a regular income, whether you are employed or self-employed. It pays an agreed portion of your lost earnings, which could help cover your monthly essential bills like your mortgage, rent and other outgoings such as utilities and food, enabling you to focus on your recovery. It can provide you with either a fixed monthly benefit amount or cover a percentage of your earnings following the deferred period. You can get short-term or long-term policies, depending on your needs. The benefit amount can be paid for each eligible claim for a set period from up to 12 months or until retirement.

You might have savings to fall back on, an adequate company redundancy package, or company sick pay that will cover illness in some circumstances but unemployment protection will help you to maintain your lifestyle and pay the bills if you can not rely on these, either in the short or long term. You can expect to receive about half to two-thirds of your earnings before tax from your regular job. This is because some money will be taken off for the state benefits you can claim, and also, the income you get from the policy is tax-free.

You can not claim income protection payments straight away if you fall ill or become disabled. You usually have to wait a minimum of four weeks, but payments can start up to two years after you stop work. This is because you may not need the money straight away as you may get sick pay from your employer, or you may be able to claim statutory sick pay for up to 28 weeks after you stop work.

Short-term income protection can cover you for accident, sickness and unemployment if you’re unable to work for a short period, for example, if you break your leg or are made redundant. Policies typically cover you from six to 12 months, although some policies will provide cover up to two years. Long-term income protection will cover you against accident and sickness if you become seriously ill or permanently disabled, and it will not cover unemployment. If you are unable to work again, long-term income protection could provide you with a regular monthly income until you retire or the end of the policy term – whichever is sooner. Check with your provider to see the exact terms.

When you apply for income protection, you specify your employment status, what you want your insurance to cover, your income, your mortgage or loan repayments.

Income protection should not be confused with Payment Protection Insurance (PPI). PPI, notorious for being widely mis-sold in the past, only covers a specific debt if you are unable to work because of injury, illness or unemployment. For example, it could cover your credit card, mortgage or loan repayments.

Key person insurance is a type of life insurance policy that provides financial protection to businesses in the UK in the event that a key employee or executive becomes incapacitated, disabled, or dies. This insurance policy can help the company cover the financial losses that may arise from the absence of the key employee, such as lost revenue, decreased productivity, or increased expenses to hire and train a replacement. Key person insurance policies can come in different types, including life insurance, critical illness insurance, and income protection insurance. The right policy will depend on the size and type of business, the key employee's role, and the potential financial impact of their loss.

Why Key Person Insurance is Important for UK Businesses
In the UK, key person insurance is an important form of business protection that can provide peace of mind to company owners and stakeholders, ensuring that the organization can continue to operate and meet its obligations in the event of an unexpected loss. Every business has key employees whose absence or incapacitation could have a significant impact on the company's financial performance. Key employees could be executives, managers, salespeople, or other employees whose skills and knowledge are critical to the company's operations and success.
The sudden loss of a key employee can have a ripple effect throughout the organization, impacting revenue, customer relationships, and other key areas of the business. For example, if a company's top salesperson becomes disabled or dies, the company may lose significant revenue and have to scramble to find a replacement. Similarly, if a key executive or manager is incapacitated, the company may struggle to make important decisions, leading to decreased productivity and profitability.
Key person insurance can help mitigate these risks by providing the company with the financial resources needed to manage the aftermath of a key employee's loss. The insurance policy can provide funds to cover expenses such as recruitment costs, training costs, lost profits, and other costs associated with replacing a key employee.

Types of Key Person Insurance Policies
There are several types of key person insurance policies available to UK businesses, including:
a. Life Insurance
This is the most common type of key person insurance policy. It provides a lump sum payment to the company in the event that the key employee dies. The payout can be used to cover expenses such as recruitment costs, lost profits, and other costs associated with replacing the key employee.
b. Critical Illness Insurance
This type of policy provides coverage to the company in the event that the key employee becomes critically ill and is unable to work. The policy can provide a lump sum payment to cover expenses such as medical bills and lost profits.
c. Income Protection Insurance
This policy provides ongoing coverage to the company in the event that the key employee becomes incapacitated and is unable to work. The policy can provide a regular income to the company to cover ongoing expenses and lost profits.

Choosing the Right Key Person Insurance Policy
Choosing the right key person insurance policy depends on several factors, including the size and type of business, the key employee's role in the company, and the potential financial impact of their loss. When selecting a key person insurance policy, it is important to work with an experienced insurance broker who can help you evaluate your options and select the policy that best meets your needs. A broker can help you assess the risks associated with the loss of a key employee and determine the appropriate level of coverage needed to mitigate those risks.

How Key Person Insurance Works
Key person insurance works by providing the company with a lump sum payment or ongoing income in the event that a key employee is incapacitated, disabled, or dies. The insurance policy is typically owned by the company and pays out to the company, rather than to the key employee or their family.
The premiums for key person insurance policies are typically tax-deductible, which can help offset the cost of the policy. However, the lump sum payment or ongoing income received from the policy is typically treated as taxable income for the company.
The amount of coverage needed for a key person insurance policy depends on several factors, including the key employee's salary, the potential financial impact of their loss, and the cost of hiring and training a replacement. An insurance broker can help the company determine the appropriate level of coverage needed to manage the financial risks associated with the loss of a key employee.
When a key employee dies or becomes incapacitated, the company must file a claim with the insurance provider to receive the payout from the policy. The insurance provider will require proof of the key employee's death, incapacity, or critical illness before processing the claim and providing the payout to the company.

It is important for businesses to regularly review their key person insurance policies to ensure that the coverage level is still appropriate for the company's needs. As the business grows and changes, the risks associated with the loss of a key employee may change as well. Regular policy reviews can help ensure that the company has adequate coverage and is prepared to manage the financial risks associated with the loss of a key employee. 

Life insurance is a type of insurance policy that can provide financial support to your loved ones when you pass away. It can offer this in a lump sum payment, which can help clear outstanding debts, such as your mortgage, and give your family money to live off, so your partner or children can continue to pay bills and living expenses. If you prefer, you can arrange to provide a regular income for them instead.

Do I need life insurance?
* If you have dependants or a partner who relies on your income, it is important to make sure they are taken care of.
* If you have a mortgage, life insurance can help your loved ones meet those financial commitments.
* You might want to consider a policy that covers funeral expenses to ease the cost for your family.

Life insurance is not a legal requirement, but it could give your dependents, like a partner or children, stability when you die. Life insurance can provide a financial safety net if you are no longer around to provide for them anymore, as well as peace of mind.

You choose the amount of cover you need, how long you need it, and whether you want to take out life insurance under joint or single names. The amount of cover you choose will normally stay fixed unless you change your policy.

If you are looking to take out a mortgage, be aware that some mortgage providers might want you to have life insurance so they know the mortgage can be repaid if you do pass away.

Private medical insurance is an insurance policy designed to cover the cost of private healthcare. It will typically cover you for surgery associated with ‘acute conditions’, like a hip replacement or having a hernia removed. You can buy different types of policies that each offer various levels of cover at varying costs. This could include fast-track diagnostics for cancer or access to other cancer treatments not currently available on the NHS.

Like other insurance, you will pay monthly or annual premiums - then, should you need private medical treatment, your provider will pay out for some or all of the cost. Private medical insurance works as a helping hand when you need it most, from in-patient treatment to extra support for mental health, depending on your policy. You can take out private medical insurance for yourself, or a joint policy to cover you and your partner.

Private medical insurance usually gives you:
* Quicker access to consultants, tests and treatment.
* Private hospitals often have facilities to make your stay more comfortable, like TVs and en-suite rooms.
* In some instances, access to treatment and drugs that are not widely available on the NHS.
* Greater control over which hospital you go to and when.

The downside of private medical insurance is that it tends to be very expensive, and chronic illnesses are not usually covered.

Getting the most suitable private medical insurance for your needs is half the battle. Firstly, decide why you want it and whom you want it to cover.

Types of private medical insurance policies:
1. Individual medical insurance
This can give you fast access to medical care if you become ill or injured, avoiding lengthy NHS waiting times. Before you start comparing policies, check if you might already have private medical insurance through your employer.
2. Joint medical insurance
This insurance policy covers the health of both you and your partner. It can be cheaper than taking out two separate policies, although this is not always the case.
3. Family medical insurance
Family medical insurance can cover your whole family under the same policy. This can sometimes work out cheaper than buying individual cover for each family member.
4. Child medical insurance
This insurance covers the cost of private healthcare for your child if they become ill. It reassures you that they will get immediate treatment in private hospitals and clinics. Currently, you can not compare standalone child health insurance through us.