As the Covid crisis has shown all too clearly, life is unpredictable. Accident or disease can rob us of our health and even our lives, while a change to our financial circumstances can take our livelihoods and the financial security we and our families depend on.
At Continuum we are looking at new ways to protect yourself and your family in a world that seems to be changing faster than ever.
The threat of Covid has reminded many people the importance of having adequate life cover. In the event of your death it could pay off a mortgage, ensuring that your loved ones could keep their home, and provide a cash lump sum, to help replace your income.
When Covid first struck there were concerns that life cover would be more difficult to obtain, as insurers could no longer rely on the statistics that allow them to set premiums. In fact, some insurers seem to have made getting cover simpler. Some have waived the medical examinations that are a condition in obtaining higher levels of cover, meaning that it can be arranged faster, and in some cases immediately.
If you are a main breadwinner, its easy to see that you need cover. But Covid can strike anyone. Even a non-waged parent makes a vital contribution to the financial security of your family. If you had to pay someone to care for children while you went out to work the costs would be substantial.
The cost may be a concern. Fortunately, you can arrange joint cover for yourself and your partner, keeping costs down with life insurance for both of you under a single policy. It costs less than two independent policies, because it is only designed to pay out on the death of the first partner.
Increased demand for joint cover may have spurred some providers to reduce their costs.
Critical illness cover
While most people understand the importance of life insurance, many leave themselves vulnerable if illness or injury struck. Some illnesses, including Covid, can mean months off work, and even lasting disabilities.
Critical Illness Cover is designed to pay out a tax-free lump sum if you are diagnosed with illnesses listed in the policy, which usually include most forms of cancer, heart attack and stroke.
Currently Coronavirus isn’t covered in most critical illness policies. But if you have complications from the virus that lead to conditions that are included– such as kidney, liver, heart or respiratory failure – the claim may be paid, if it meets the definition in the policy terms and conditions. You might also consider Permanent Health Insurance or PHI. This pays a proportion of your salary in the event of illness or accident stops you working permanently.
Income protection insurance
The coronavirus pandemic is putting thousands of UK jobs at risk. If you’re worried about being out of work for a while, either because you could fall sick or your business might be forced to close, income protection insurance could help. Income protection insurance is designed to pay out a regular income if you can’t work due to an illness or injury or become unexpectedly redundant.
Some insurers have made it more difficult to obtain, or have put clauses in the policy that exclude Covid, but with expert help from the Continuum team is still possible – and prudent – to arrange income protection.
What cover do you need?
As the Covid emergency has shown, none of us know what is around the corner, and we need insurance cover to provide a lifeline if things go wrong. Insurers may have changed the cover they offer and the charges they make for it, so getting an independent expert to find the cover that is right for you and your family has never been more important.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable Protection products, you should seek independent financial advice before embarking on any course of action.
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