If you’re unable to work due to illness, injury or unemployment, or if you die, Protection Insurance policies ensure you can meet your financial commitments; following are some of the common policies. Terms, conditions, variations and your own personal circumstances will apply.
If you are unable to work due to illness or injury, Income Protection pays a monthly amount to cover essential outgoings. If you are employed you can benefit from an income protection policy as well as receive Statutory Sick Pay (currently £96.35 a week).
There are different options. A policy which will pay towards your monthly mortgage costs while you are unable to work due to illness, injury or unemployment. Or, a policy which will provide a lump sum to pay off your mortgage if you are diagnosed with a terminal illness or you die.
If you are diagnosed with a Critical Illness named in your policy you will receive a lump sum. You can use this as you choose, for example, for living expenses, costs associated with your illness, alterations or purchases to make your life easier, pay debts, to pay for your funeral.
A lump sum will be paid to your estate. You can use this to cover funeral costs, pay inheritance tax, pay debts, or leave a legacy for family, friends, a charity or an organisation.