Making sure your loved ones are protected should something happen to you makes the best gift this Valentines Day, according to national financial advice firm Continuum.
Becoming unemployed or ill can happen to almost anyone. Bills need to be paid and your family needs food on the table, even if money isn’t coming in. Your home and the people who depend on you could be at risk.
However, by planning ahead for all possibilities, Britons can make sure their families are protected.
Craig Parkinson, Mortgage and Protection Consultant at national financial advice firm Continuum, said: “Flowers and chocolates may be the traditional gifts for Valentines Day, but could there be anything more romantic than making sure those you love will be taken care of should something happen to us? Insurance may not be a traditional gift for your Valentine, but it is one that shows you truly care.
“Insurance exists to help when things go wrong. Many of us have at least some form of life insurance, perhaps to pay off the mortgage and keep a roof over our family’s head if the worst was to happen to us. But it is not enough to deal with all the things life might throw at us. It can’t pay out if we become incapacitated, or if we simply lose our income.
“Umbrella cover, on the other hand, may. An umbrella, made up of a whole range of insurance cover types, may offer protection against all kinds of threats, and give all-round financial security for you and your loved ones, no matter what life has in store.
“Everyone has different circumstances, resources and commitments. This means that everyone needs an individually designed umbrella arrangement. This may include life assurance, critical illness cover and income protection insurance.
“With a co-ordinated insurance umbrella, with all the cover you need in a single policy you have just one monthly premium to pay. What’s more, that single premium may well be very much smaller than a piecemeal approach.
“A good financial adviser can look to build you an umbrella for your protection needs – including your need to keep costs in check.”
Income protection insurance is split into two main types:
- The first is Permanent Health Insurance or PHI. This pays a proportion of your salary in the event of illness or a debilitating accident that stops you working permanently and can continue until your normal retirement age.
- The other is Accident, Sickness and Unemployment (ASU) cover. This can provide a replacement income in the event of illness, accident, or redundancy for a maximum of 12 or 24 months.
- Long term policies can continue paying monthly benefits for a single claim until you retire. However, long term policies won’t usually include cover for unemployment.
