Life Assurance  

Protection insurance

The type of insurance policy you might need depends on your situation:

  • A life insurance policy will pay your dependants a lump sum or regular payments if you die unexpectedly.  If you have a partner or children, life insurance can provide you with the reassurance that they will be able to cope financially without you.

  • Income protection insurance is designed to support you financially if you can’t work due to illness or injury and your income drops.  This type of policy is particularly relevant for anyone who is self-employed and wouldn’t get sick pay.

  • A short-term income protection insurance will pay out a monthly sum, for a set period of time, if you lose your source of income due to illness, injury or redundancy.

  • Critical illness cover will cover you in case you get a specific type of life changing condition.

  • Payment protection insurance will support you if illness or redundancy means you can’t meet regular payments of your debts. 

Life Insurance

Life insurance can pay your dependants money as a lump sum or as regular payments if you die.  It is designed to provide you with the reassurance that your dependants will be looked after if you’re no longer there to provide for them.

The amount of money paid out depends on the level of cover you buy.  You can also decide how it is paid out and whether it will cover specific payments, such as mortgage or rent.

There are two main types of life insurance:

Term life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) – such as 5, 10 or 25 years.  These kinds of policies only pay out if you die during the policy term.  There is no lump sum payable if you survive the policy term.

A Whole-of-life policy will pay out no matter when you die, as long as you keep up with your premium payments.

Income Protection

Income protection insurance is a long-term insurance policy to help you if you can’t work because you’re ill or injured.


It replaces part of your income if you can’t work because you become ill or disabled.  It pays out until you can start working again, or until you retire, die or the end of the policy term - whichever is sooner.


There’s a waiting period before the payments start.  You generally set payments to start after your sick pay ends, or after any other insurance stops covering you.  The longer you wait, the lower the monthly payments.


It covers most illnesses that leave you unable to work, either in the short or long term (depending on the type of policy and its definition of incapacity).  You can claim as many times as you need to, while the policy lasts.


It’s not the same as critical illness insurance, which pays out a one-off lump sum if you have a specific serious illness.


It’s not the same as short-term income protection, which also pays out a monthly sum related to your income, but only for a limited period of time (normally between two and five years) and can cover fewer illnesses or situations.


Critical Illness Insurance

Critical illness insurance will pay out if you get one of the specific medical conditions or injuries listed in the policy.  But be aware that not all conditions are covered.  The policy will also state how serious the condition must be.


Examples of critical illnesses that might be covered include:

·         Heart attack

·         Stroke

·         Certain types and stages of cancer

·         Conditions such as multiple sclerosis



For more information, please contact us and we will be happy to assist you.