It’s widely reported that as a nation, most of us don’t have adequate financial protection in place should the worst happen, with it being suggested that more than half of us don’t have any cover in place at all.

Although it may not be a pleasant conversation, it’s essential to discuss with your loved ones what would happen in the event that you are diagnosed with a serious illness, or unable to work or even in the worst case scenario – your death.

Think not only about the emotional impact but the financial burden too. Would your family still be able to pay the mortgage, or would they have to sell the family home?

How would you continue to meet those monthly bills if you weren’t able to work, would you receive sick pay for a period of time? What would happen after this period?

Having insurance in place to take this stress away at what would be a very upsetting time, allows you and your family the peace of mind that the finances aren’t going to be a problem.

So what solutions are available?


Life Insurance

Life insurance can pay out a lump sum or a monthly amount (this is called Family Income Benefit) in the event of your death. The payment is made to your beneficiary and this can be put in place to perhaps cover a mortgage loan. A lot of people like to leave an additional amount over and above the mortgage so that the family have additional funds to meet ongoing bills, pay for funeral expenses and fund time off work while grieving etc.

There are many different types of cover and it’s important to ensure that your life insurance is tailored to your specific set of circumstances.

Critical Illness Cover

This type of insurance will again pay out a lump sum or a monthly amount if you were to be diagnosed with a serious illness. Each insurance company has a list of illnesses which they cover and this can vary significantly so it’s always crucial to know what you are and what you are not covered for. To give an example, most insurance companies will pay out if you were to be diagnosed with a stroke, heart attack, types of cancer and Alzheimer’s disease. However, the quality of cover can vary hugely between insurance companies, so price isn’t the only the consideration here.

Income Protection

While critical illness cover pays out if you were to be diagnosed with a severe illness, what happens if you were to become incapacitated for something that isn’t classed as critical. For example, what if you were signed off work due to long term stress, anxiety or depression or even if you were to suffer a back injury. Losing your income can have a huge impact.

If you are lucky enough to have sick pay with your employer, will this mean that your income will continue on the same level until you are ready to go back to work? Or is it just for a set period or even a percentage of your income?

Income protection insurance will provide you with an income if you were unable to work due to any illness, so there is no list of illnesses. This type of cover can pay out for a specific period of time say 1 year or 2 years or until you are fit and well enough to go back to work.

To ensure you and your loved ones are financially protected, contact our offices in Fareham