There are different products in this area which provide cover for you and your family in the event of an untimely illness or death.

Mortgage Protection.

This policy is linked to your mortgage and provides a benefit on death which is designed to cover the balance of the mortgage. This policy is usually assigned to the mortgage lender and any surplus left after the mortgage is paid off is returned to your estate. The cover on this policy decreases as your mortgage decreases but the monthly cost does not change.

Convertible Term Assurance

This policy is designed to provide cover over a specific term and pays out on death. If the cover does not have an increasing option with it then the monthly cost does not change. At the end of the term the person on cover can elect to continue the same level of cover for another time period without medical evidence and the cost will be based on the then age of that person.

Serious Illness Cover

In the event that you contract a specified serious illness a tax free lump is paid out to you. Over 85% of claims relate to Heart Disease, Cancer or Stroke but are at least 40 other specified illnesses that are covered. A statistic to bear in mind is that you are five times more likely to suffer a serious illness than die before the age of 65.

Serious Illness cover can be added to both mortgage protection policies and convertible term assurance policies .

Income Protection

This is commonly called Permanent Health Insurance (PHI). This policy is designed to cover loss of income in the event that you are unable to work due to accident or illness. As a self employed person you can have cover of up to 75% of your annual income. If you are a P.A.Y.E. earner you can have cover of up to 75% of your income less the state benefit paid to you .