Assurance encompasses various insurance types, notably life assurance, offering guaranteed payouts regardless of when the insured passes away. This long-term coverage assures financial support for beneficiaries. Mortgage assurance, another facet, safeguards homeowners by covering mortgage payments in the face of death or critical illnesses, ensuring housing and financial stability.
Asset protection involves safeguarding one’s financial holdings, with a particular focus on securing a mortgage. This includes insurance strategies and legal measures to shield property assets from risks, liabilities, or legal claims. Effective asset protection ensures the stability and continuity of homeownership, especially in the face of unforeseen circumstances.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE
Building & Contents Cover
Building & Contents Cover, also known as homeowners insurance, is a type of insurance that protects homeowners from financial losses caused by damage to their property and personal belongings.
Building cover typically includes protection against damage caused by events such as fire, storms, floods, and theft. It covers the cost of repairing or rebuilding the home and other structures on the property, such as sheds or garages.
Contents cover, on the other hand, typically includes protection for personal belongings inside the home such as furniture, electronics, clothing and other valuables. It covers the cost of replacing or repairing these items if they are damaged or stolen.
Building & Contents Cover is typically purchased as a package and is usually required by the mortgage lender as a condition of the loan. Homeowners can purchase coverage for both the building and the contents separately, but purchasing them together is usually more cost-effective and provide more comprehensive coverage.
Business Protection Insurance
Business Protection Insurance is a type of insurance that protects a business from financial losses caused by the death or critical illness of a key person or shareholder.
The purpose of Business Protection Insurance is to provide financial protection to a business in the event that a key person, such as a director or a major shareholder, dies or becomes critically ill. The policy pays out a lump sum or a regular income to the business to help it cope with the loss of the key person, and to enable the business to continue operating or to buy out the shares of the deceased or ill person.
Critical Illness Cover
Critical Illness Cover is a type of insurance that provides financial protection in the event that the policyholder is diagnosed with a serious, specified illness or condition. It is designed to help policyholders cope with the financial burden of a serious illness and to provide them with the means to pay for medical treatment and other expenses
When a policyholder is diagnosed with a critical illness that is covered by their policy, the insurance company will pay out a lump sum or a regular income to the policyholder. The policyholder can then use the money to pay for medical treatment, make adjustments to their home, or to cover any other expenses that may arise as a result of the illness.
There are different types of critical illness policies available, and the coverage can vary depending on the policy. Some policies will cover only a specific list of illnesses, while others will provide broader coverage. It’s important for individuals to carefully review the terms of the policy and to understand what is and isn’t covered
It’s important to note that critical illness cover is not the same as life insurance, which pays out in the event of death. Critical illness cover pays out when the policyholder is diagnosed with a serious illness, and the policyholder is still alive.
Decreasing cover protection refers to a type of insurance that provides decreasing coverage over time. This type of insurance is also known as decreasing term insurance or mortgage protection insurance. It is a type of life insurance that is designed to provide a death benefit that decreases over time. It is commonly used to provide coverage for a specific period, such as the term of a mortgage. The death benefit decreases over time, typically in line with the outstanding balance of the mortgage, so that if the policyholder were to die during the term of the mortgage, the death benefit would be sufficient to pay off the remaining mortgage balance. This type of insurance is typically less expensive than level term insurance because the death benefit decreases over time.
Deferred Period for Income Protection
A deferred period is a period of time that an individual must wait before they can start receiving benefits from an income protection insurance policy. The deferred period is the time between the date on which the individual becomes unable to work due to an accident or illness, and the date on which they start receiving benefits. The length of the deferred period will vary depending on the policy and the individual’s needs. Common deferred periods are 4, 8, 13, 26 and 52 weeks, but it can be longer or shorter. A longer deferred period will result in lower premiums, but the individual will have to wait longer for benefits to start. A shorter deferred period will result in higher premiums but the individual will start receiving benefits sooner.
5 star Defaqto
Defaqto is a United Kingdom-based independent financial research company that provides ratings and information on financial products. They rate products on a scale from one to five stars, with five stars being the highest rating. A 5-star Defaqto rating indicates that a financial product is considered to be among the best in its category, offering an exceptional level of features and benefits. These products tend to be feature-rich and offer a high level of flexibility. A 5-star rating is considered to be an excellent rating and indicates that the product is one of the best available in the market. Defaqto ratings are widely used by financial
An individual or entity designated in your will to manage your estate and execute your wishes after your passing. Responsibilities encompass organising the funeral, managing assets, settling outstanding debts, and distributing the estate among beneficiaries according to your instructions.
Family Income Benefit
Family Income Benefit is a life insurance policy that provides a tax-free, regular income to beneficiaries upon the policyholder’s death. Unlike a lump-sum payout, it ensures financial stability by offering a steady stream of income, helping support the family’s living expenses and maintain their standard of living.
General insurance is a type of insurance that provides financial protection against a wide range of risks and losses, such as property damage, personal injury, and liability. It includes insurance products such as home, auto, business and health insurance. General insurance policies are typically purchased by individuals and organizations to protect against losses that may occur as a result of unexpected events.
Each type of general insurance has different types of coverage, deductibles and limits, also, it’s important for consumers to carefully review the terms and conditions of a policy to ensure that it meets their needs and provides the right level of protection.
It’s important to note that general insurance is different from life insurance, which provides financial protection in case of death.
Guaranteed premiums refer to a feature of some insurance policies where the premium (the amount paid for the policy) is guaranteed to remain the same over the life of the policy. This means that the policyholder will pay the same premium amount each year, regardless of any changes in the cost of insurance or the policyholder’s age or health.
This feature is often found in life insurance policies, such as term life insurance or whole life insurance. It can also be found in some long-term care insurance policies and annuities.
Guaranteed premiums can provide policyholders with peace of mind and budgeting certainty, as they know that their premium will not increase over time. This can be especially important for older policyholders or those on a fixed income.
It’s important to note that Guaranteed premiums may come at a higher cost than non-guaranteed premiums. Additionally, some guaranteed premium policies may have a limited time frame, after which the premiums may increase.
It’s important for policyholders to carefully review the terms and conditions of a policy before purchasing it, to ensure that it meets their needs and provides the right level of protection, and that they understand what happens with the premium over the life of the policy.
Gift Inter Vivos
A gift inter vivos, also known as a “gift between living persons,” is a transfer of property or assets from one person to another, made during the giver’s lifetime.
Gifts inter vivos can be made for any reason and can take many forms, such as cash, stocks, real estate, or personal property. They can be given freely or in exchange for something, such as a promise or an exchange of services.
It’s important to note that gifts inter vivos are different from gifts made through a will, which are made after the giver’s death and are subject to probate.
Gift inter vivos can be used for various purposes such as:
- To transfer assets to a family member or loved one for their benefit
- To make charitable donations
- To reduce the size of one’s estate for tax purposes
- To help someone in need
However, it’s important to consider the tax implications of giving gifts inter vivos, as gifts over a certain value may be subject to gift tax. In addition, some gifts may have strings attached and can affect the relationship between the giver and the receiver, particularly if the gift is not well-received.
It’s also important to consider the giver’s own financial situation and ensure that they will be able to maintain their own financial security after making the gift.
Health, in the context of protection insurances, pertains to the overall well-being of individuals. Health insurance provides financial protection by covering medical expenses, ensuring access to quality healthcare. It safeguards against the financial impact of illness or injury, offering a crucial layer of protection for individuals and their families.
Income protection is an insurance policy that provides a replacement income if the policyholder is unable to work due to illness or injury. It can help cover living expenses and maintain financial stability during a time of need. It is an important coverage to have as it can help with the unexpected events.
Increasing cover in protection refers to a type of insurance policy that provides coverage that increases over time, typically in line with inflation or the cost of living. This type of protection is often used for life insurance or critical illness insurance policies, where the coverage amount needs to keep pace with the increasing cost of living or other expenses, such as medical bills.
With an increasing cover policy, the insurance company will typically raise the coverage amount by a set percentage each year or at regular intervals, ensuring that the policyholder always has adequate protection. This type of policy can be particularly useful for those who are worried about their coverage becoming insufficient over time, or for those who are looking to protect their loved ones against the rising cost of living.
It’s important to note that increasing cover protection policies typically have higher premiums compared to level term policies, which provide a fixed coverage amount for a set period of time. Before choosing an increasing cover policy, it’s recommended to carefully consider your individual needs and financial situation to ensure that you choose a policy that provides the right level of coverage for your needs.
Indexed-linked protection is a type of insurance policy that provides coverage that is linked to an index, such as the Consumer Price Index (CPI). This type of protection is typically used for life insurance or critical illness insurance policies, where the coverage amount needs to keep pace with the cost of living.
With an indexed-linked policy, the coverage amount will increase in line with the index, ensuring that the policyholder always has adequate protection. This type of policy can be particularly useful for those who are worried about their coverage becoming insufficient over time, or for those who are looking to protect their loved ones against the rising cost of living.
It’s important to note that indexed-linked protection policies typically have higher premiums compared to level term policies, which provide a fixed coverage amount for a set period of time. Before choosing an indexed-linked policy, it’s recommended to carefully consider your individual needs and financial situation to ensure that you choose a policy that provides the right level of coverage for your needs.
Joint Life, 1st death
Joint Life, 1st Death is a type of life insurance policy that provides coverage for two individuals, typically a couple or partners. The policy pays out a death benefit upon the death of either person, with the full amount of coverage going to the first person to pass away. Once the first death benefit has been paid, the policy typically terminates and no further coverage is provided.
This type of policy can be an economical option for couples who want to ensure that their loved one is financially protected in the event of their death. The policy can provide a lump sum payment that can be used to cover final expenses, pay off debts, or provide financial support for the surviving spouse.
Joint Life, 1st Death policies typically have lower premiums compared to two individual life insurance policies, as the risk to the insurer is lower since they will only pay out one death benefit. However, it’s important to carefully consider your individual needs and financial situation before choosing a Joint Life, 1st Death policy, as it may not provide the same level of coverage as two individual policies.
Joint Life, 2nd Death
Joint Life, 2nd Death is a type of life insurance policy that provides coverage for two individuals, typically a married couple. The policy pays out a death benefit upon the death of the second policyholder, hence the name “2nd death.” This type of policy is designed to provide financial security for the surviving spouse or partner in the event of the death of their partner.
With a Joint Life, 2nd Death policy, the coverage amount and premium are typically lower compared to two separate individual life insurance policies, as the death benefit is only paid out upon the second death. This type of policy can be a cost-effective way for couples to ensure that their financial needs are taken care of in the event of the death of one of them.
It’s important to note that Joint Life, 2nd Death policies can vary in their terms and conditions, and it’s important to carefully consider your individual needs and financial situation before choosing this type of policy. It’s also recommended to consult with a financial advisor or insurance professional to ensure that you understand the policy’s terms and that it is the right choice for your needs.
Keyman insurance is a type of business insurance that provides coverage for a key employee or business owner. The policy provides financial protection for a business in the event that the key employee or owner becomes unable to work due to illness, injury, or death.
It’s important to carefully consider the terms and conditions of a keyman insurance policy and to consult with a financial advisor or insurance professional to ensure that it is the right choice for your business.
Level cover is a type of life insurance policy that provides a fixed death benefit over the term of the policy. The death benefit is payable to the policy’s beneficiaries if the policyholder dies during the policy term. The amount of coverage remains unchanged over the term of the policy, regardless of changes in the policyholder’s age or health. This makes level cover policies suitable for individuals who want to ensure that their beneficiaries receive a fixed amount of financial support in the event of their death. The premiums for level cover policies are generally higher in the early years of the policy, but remain constant over the term, making the policy more predictable and affordable over time.
Mortgage protection is a type of insurance that safeguards homeowners and their families by covering mortgage-related expenses in the event of the policyholder’s death, disability, or critical illness. It ensures the continuity of mortgage payments, preventing financial strain and potential loss of the home during unforeseen circumstances.
No Protection Insurance
No protection insurance refers to a lack of coverage against various risks or losses. It indicates the absence of a specific insurance policy, leaving individuals or assets vulnerable to financial consequences resulting from events like accidents, illnesses, or property damage, without the mitigating benefits of an insurance plan.
Over 50s Life Insurance
Over 50s life insurance is a type of life assurance designed for individuals aged 50 and older. It offers a guaranteed payout to beneficiaries upon the policyholder’s death. Typically, it requires no medical examination and provides a cost-effective way for older individuals to secure financial protection for their loved ones.
Private Medical Insurance
Private Medical Insurance (PMI) is a type of insurance policy that provides coverage for private medical treatment in the UK. It allows policyholders to receive treatment from private healthcare providers, such as private hospitals and clinics, rather than relying on the public National Health Service (NHS). PMI policies typically offer faster access to treatment, more flexibility in choosing a provider, and the option to choose private rooms and additional services. The cost of PMI can vary depending on the level of coverage, age, and health status of the policyholder. PMI is usually purchased by individuals or employers as a benefit for employees, and can complement or supplement the coverage provided by the NHS. It is important to carefully consider the terms and conditions of PMI policies before purchasing, including the level of coverage and exclusions.
Probate is the legal process wherein a court validates and executes a deceased person’s will or, in the absence of a will, distributes their assets according to applicable laws. This involves appointing an executor, settling debts, and ensuring the lawful transfer of the deceased’s estate to heirs or beneficiaries.
A life insurance quote provides an approximation of your premium, considering factors such as the type of coverage, coverage amount, and policy duration.
Ratings refer to an evaluation of a borrower’s creditworthiness and ability to repay a mortgage. Mortgage ratings are typically assigned by credit rating agencies, which assess factors such as the borrower’s credit history, income, employment status, and existing debt. The rating is expressed as a score or grade, which can range from poor to excellent. Lenders use mortgage ratings to determine whether to approve a mortgage application, and to set the interest rate and other terms of the loan. Borrowers with a higher mortgage rating are generally considered to be lower risk, and may be offered more favourable terms, such as lower interest rates or higher borrowing limits.
a renewal option is a feature that allows the policyholder to extend their coverage beyond the initial term of the policy. With a renewal option, the policyholder has the right to renew their policy at the end of the term without having to go through the underwriting process again. This can be beneficial for policyholders who may have developed health issues or other factors that could make it difficult for them to obtain coverage at the end of the initial term. The terms of the renewal option may vary depending on the policy, and policyholders should review their coverage carefully to understand the terms and conditions of their renewal option.
Sum assured refers to the predetermined amount guaranteed by an insurance policy to be paid out to the policyholder or beneficiaries upon the occurrence of specified events, such as death or critical illness. It represents the assured financial coverage provided by the insurance contract, offering a specified monetary benefit.
Trusts are legal arrangements where a trustee holds and manages assets for the benefit of designated beneficiaries. Settlers create trusts to safeguard and distribute assets according to specific terms, ensuring efficient estate planning, asset protection, and the fulfillment of their intentions regarding the use and distribution of the trust property.
Insurers engage in a process that involves querying applicants about their health and lifestyle to assess the financial risk of providing coverage. This evaluation determines the appropriate premium amount and coverage level for the individuals seeking insurance.
A Valued Policy is an insurance contract where the insurer and the policyholder agree on specific values assigned to insured items. In the event of a total loss claim, the predetermined values serve as the sum paid without requiring additional negotiation, streamlining the claims process.
Whole Of Life Cover
Whole of life cover is a type of life insurance policy that provides cover for the entire duration of the policyholder’s life, rather than a fixed term. It pays out a lump sum to the policyholder’s beneficiaries when they die, regardless of when that occurs. Whole of life cover is generally more expensive than term life insurance, but provides lifelong protection.
Waiver of Premium
Waiver of premium is an optional extra that can be added to a life insurance policy in the UK. It means that if the policyholder becomes seriously ill or disabled and is unable to work, the insurance company will waive the premiums for a period of time, usually until the policyholder recovers. This ensures that the policy remains in force and the policyholder and their beneficiaries remain protected.
This is a provision in an insurance policy listing specific conditions, events, or risks that are not covered by the policy. Exclusion clauses clarify the scope of protection and help define the limits of coverage.
Protection policies are essential to safeguard your financial well-being and that of your loved ones. They provide a safety net, offering financial support during unforeseen events like illness, accidents, or death. With the right policies, you ensure peace of mind, secure assets, and maintain a stable future for you and your family.
A feature in insurance policies where no deductible amount needs to be paid by the policyholder before the insurer covers a loss or claim. It offers immediate financial protection without out-of-pocket expenses.