The coronavirus pandemic has highlighted just how financially vulnerable many of us are, as well as how important it is to have the right financial protection in place in the event of a crisis.
If this year has taught us anything, it’s that the unexpected can happen and being prepared is key to ensuring our loved ones are financially secure.
The importance of life insurance
Data shows that 60% of Brits don’t have life insurance, despite a large majority having dependants or a mortgage, or both. Buying life insurance can be easy to put off – after all, no one likes to think about the worst happening to them.
However, if you’ve realised your family would be financially vulnerable if something happened to you, buying life insurance for as little as £5 a month can be a small price to pay for safeguarding your family’s future.
Many life insurance policies will cover you for coronavirus, providing you answer the application questions honestly and don’t hide any pre-existing conditions. Most insurers will now ask you if you’ve recently been abroad and whether you’ve been in contact with someone with COVID-19, tested positive for the virus or had any symptoms.
If any apply to you, insurers may postpone accepting your application until they are satisfied you are not at increased risk.
Adding critical illness cover
Many life insurance policies also allow you to add critical illness cover which pays out a lump sum if you are diagnosed with a condition or illness listed on your policy. Coronavirus is not one of the illnesses listed in any critical illness cover so you would not be covered if you tested positive, but this doesn’t mean critical illness cover is not worth having.
If you contracted the virus and it led to severe complications such as a heart attack or stroke, you may still be able to make a claim.
Don’t forget income protection
It’s easy to forget about income protection or believe you don’t need it, but as the pandemic has shown, loss of income can become a very real problem. Income protection can help replace your salary if you cannot work due to an accident, illness or redundancy.
Having this type of cover can prove valuable if you have bills to pay, a mortgage and dependants to care for.
However, it’s essential to check exactly what you’re covered for. Many policies have a waiting period of at least 30 days before they will pay out, so if you are only off work for a couple of weeks, you may not receive anything. Some policies also now have coronavirus-related exclusions.
If you’re not sure which type of cover is most suitable for you and your circumstances, please get in touch and we can help ensure you and your family have the right financial protection in place.
As with all insurance policies, conditions and exclusions will apply
Catch up on our other blog posts:
Engaging with your home insurance requirements can be challenging but running the risk of not tuning in and getting the most suitable cover - and the right level of cover - could be financially devastating if an unwelcome event were to occur. Although home insurance...
Many people find that the language of protection insurance isn’t particularly user-friendly, with confusing terminology often becoming a barrier to finding the right insurance. We believe that nobody should be prevented from protecting themselves and their loved ones...
Income protection insurance refers to a group of insurance products that help you out financially, if you lose your income due to injury or illness. The COVID-19 pandemic has greatly increased awareness of the importance of having a safety net to fall back on in times...
(Your home may be repossessed if you do not keep up repayments on your mortgage)
We charge a fee for arranging and advising you on the mortgage. The fee will be dependent on your circumstances but will not exceed £499. (Our typical fee is £299.)
For Lifetime Mortgages/Equity Release the fee will be £799.
Our mission is to provide honest mortgage advice, whilst helping you save money.
Get in contact
Or call —02380224925