Do you know the difference between these insurance policies?

Do you know the difference between these insurance policies?
Posted by James Hood

Unless you’re a lottery winner, an heir to a rather large fortune, or Mark Zuckerberg, you need to think about protecting your income, finances and family should anything happen to you.

We understand that sometimes managing your money can be difficult and the options out there can daunting. That’s why Outlet has pulled together a team of professionals to help people achieve what they want from their finances and get sound advice they can trust.

So, what are the three key insurance policies you should think about and how do they differ?

Life insurance
This covers you in the event of your death. It’s most important for anybody who has a dependant. You could have a spouse for example or be caring for an elderly relative or sibling. By using suitable planning, you can ensure that the beneficiary of the policy receives the right amount of money at the right time. The value of the policy you apply for should be specific to your needs.

Critical illness
This policy pays out a lump sum of money, typically 28 days after the diagnoses of a specified critical illness. It means that in the event you get a ‘critical illness’ such as cancer that you will no longer have to worry about mortgage payments. It’s important to say that not all illnesses will be covered by every policy - you need to check what you are covered for carefully and get appropriate advice. Don’t forget this tends to be a one-off payment, so you might want to consider our next type of insurance if you are unwell and need to pay other bills.

Income protection
Imagine you had a box with a handle. Every time you turned the handle, a £50 note fell out. Would you want to insure the box in case it broke?

It’s exactly the same with your income or salary. Imagine you are earning money from your employer or your business and then something prevents you from going to work. That could be due to an accident or a serious illness. How would you pay for your outgoings?

Even if you have critical illness insurance to pay off your mortgage, would you have enough to cover things like your gas bill, phone bill or buy things like food or items for your family?  There is a wide range of options available to you and it is essential that you take advice. You can adjust the amount of money you pay in premiums and, therefore, how much you will get if you need to make a claim.

 

If you would like a qualified professional to review your home insurance protection, follow the link or give us a call and we’ll put you in touch with one of the team.

Do you want to take out a policy or are you still unsure about which policy you might need? Outlet has a dedicated money team, who are here to guide you through the process. See our property-related financial services section and give us a call on 020 7287 4244.

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