Life is full of uncertainties, however despite this, taking out an adequate insurance policy to protect you in these uncertain times can often be overlooked.

By taking out the right insurance policies, you can ensure that all your affairs are taken care of in the event of death, critical illness, long term sickness or injury. Protection insurance ensures that for as long as you continue to pay your premiums, the provider will pay a sum of money to you, or your named beneficiaries or your estate, should the worst happen.

The amount that you pay for your protection policy depends on various factors, including how old you are when you take out the policy, the length of cover, the state of your health, whether you are a non-smoker and the level of cover you require.

Life and protection insurance is the best way to secure your financial future against the risk of an unexpected loss of income. Should you experience the worst and can no longer work due to sickness, or were to pass away, having this cover in place will help you and/or your loved ones cope with any financial difficulties that could arise, such as keep up your mortgage payments. Nobody likes to imagine the worst happening, but sometimes the difficult questions need to be considered. If you were to die, would your loved ones be able to maintain their current lifestyle without you income? If not, then a lump sum life assurance payment could be the answer, helping your family to continue living in the way they’re accustomed to at a very difficult time.

If you or your family were to come up against a situation that meant you would lose your regular income, a protection policy could help you to:

You may already have life and protection insurance in place, but it’s always worth reviewing your policies to ensure the type and amount of cover provided still matches your personal circumstances. For example, you may have moved home or had children since you originally took out the policies.

We understand that thinking about death, illness or long-term care can be difficult, however, it is necessary to ensure that you have the peace of mind that you are protecting your family and loved ones. It is particularly important if you have financial dependents, as the insurance pay-out can replace your income if you are ill or when you die, allowing you to continue to support them long after your death.

Taking out a personal protection policy also means that should you not have any assets or assets of little value, your loved ones can still receive a cash lump sum.

Furthermore, a protection policy can help to pay off any debts you may be leaving behind, meaning your loved ones are not left with any surprises or unaffordable expenses.

Life insurance (sometimes known as life assurance) will pay out either a single lump sum (sum insured) or a regular income when you die. It can help provide financial security for people who depend on you, if the worst happens.

Although no amount of money can replace a loved one, it can help those left behind to weather the financial storm left in your absence. For example, it could pay off your mortgage or provide an income to go towards regular household expenditure.

This is the simplest type of life insurance. You choose how long you’re covered for, eg. 20 years (the term), and the policy pays out if you die within the agreed term. You can also take out term cover as a couple, with the policy paying out on the first death only during the term. There are several different types of policy:

• Level: The amount of cover and premiums remain the same
• Increasing: (or index-linked): The amount of cover and premiums gradually rise in line with inflation
• Decreasing: The amount of cover will reduce over the policy term; this is often used in conjunction with a repayment mortgage, where the amount of the loan outstanding reduces each year.
• Renewable: You can extend the original term of the policy.
• Convertible: Lets you convert the policy to whole of life insurance.

This is essentially the same as term insurance, but instead of a lump sum pay out on death, there is a regular income paid to your beneficiaries. This type of policy may be more suitable if your main requirement is to ensure that your dependants are provided with ongoing financial support.

Whole of life insurance pays out a lump sum when you die, whenever that is, as long as you are still paying the premiums.

Serious illness and critical illness insurance plans pay out a tax-free lump sum on the diagnosis of a range of serious (but not fatal) conditions. These conditions include things like heart attack, stroke, cancer, major organ transplants and many others. The conditions covered will vary depending on the insurer.

Serious and critical illness insurance often comes as an optional addition to a life insurance policy, but can also be purchased on its own. Some policies will pay out a partial amount of your sum assured, while others will only pay out once. This means that although they won’t necessarily replace your regular income, you can still use the money towards medical treatment, mortgage repayments or anything else you choose.

Many people buy serious and critical illness insurance when they take on a major commitment, like a mortgage, or when they start a family. However, as any of us could suffer a serious illness at any time and would most likely appreciate our financial burden being lightened, it’s fair to say that this type of cover is relevant for most of us, no matter what life stage we’re at.

If you already have critical illness insurance, you should think carefully before you cancel your existing policy and take out a new one. This is because your health may have deteriorated since taking out the cover and pre-existing medical conditions would not be covered by the new policy.

Recent advances in the treatment of certain conditions, such as cancer, are also worth considering, as a new policy might be more restrictive than an older one when it comes to paying out on claims for certain conditions.

We will be able to identify whether any of these issues are applicable to your own circumstances and advise you accordingly.

Income protection insurance pays out a regular tax-free income if you become unable to work because of illness or injury. It could help you keep up with your mortgage repayments or rent, and other day-to-day living costs until you are able to return to work.

You can arrange cover to replace a percentage (normally up to 70 per cent) of your lost income until you reach retirement, return to work, or die, whichever happens first. Alternatively, cover can be arranged for a limited period of time, which will result in a cheaper premium.

The premium you’ll pay will vary depending on these factors and others such as your age, health, the nature of your job and, of course, the level of income you wish to protect.

If you become ill or suffer an injury during your working life, an income protection policy can help protect against possible loss of income and give you the peace of mind you need to concentrate on recovery.

Payment protection insurance and short term income protection insurance (along with mortgage payment protection insurance and accident or sickness) can provide a monthly income if you can’t work due to an accident, illness or injury.

There are important differences between these products and income protection insurance, the most notable being that they will only pay a percentage of your income for a limited period of time – usually between 12 and 24 months.

In contrast, income protection insurance will pay out for as long as you are unable to work (up until the policy expires). Shorter payment periods are available from some insurance companies, which reduces the cost of these plans.

Accident Protection gives you the confidence to live the life you love. It provides financial support for you 24/7 worldwide, covering a range of injuries from broken bones to those that could have significant impact on your life. All it takes is three simple steps.