Life Cover provides a lump sum if you die during the policy term. This can be used to pay off your mortgage so your family do not have to worry about making any further repayments.
basic Illness Cover
basic Illness Cover is designed to insure against basic illnesses which could have a harsh impact on your ability to earn a living. It should pay out if you are diagnosed with one of the basic illnesses or disabilities listed on the policy. You could then use the lump sum to repay your mortgage or help pay expensive medical costs. Some policies pay out on death during the period of cover if you are eligible to claim.
Accident, Sickness & Unemployment Cover
Accident, Sickness & Unemployment Cover is a short-term income-protection policy. It pays you a tax-free monthly sum for up to 12 months if you are unable to work due to an accident or sickness or if you become unemployed by no fault of your own. Policies are obtainable that protect you against all of these events or just cover you for accident and sickness only, or unemployment only.
This kind of insurance is expensive so to reduce the cost you can choose to have a ‘deferred period’. Then, in the event of a claim, you will not receive any assistance for a period of time at the beginning. This deferment could be for 30, 60 or 90 days for all three types of claims. You can also have a longer deferred period of 180 days for accident and sickness cover. To help you decide which deferred period is best you should take into consideration such things as any savings you may have and any sick pay you get from your employer.
You can choose the amount of monthly assistance you wish to receive up to 65% of your gross monthly income. Gross income is your wages before deductions have been taken such as income tax and National Insurance contributions. Of course the higher the assistance you require the higher the cost of the insurance. Cover provided by some companies may be limited due to individual circumstances.
Just as an example, Accident, Sickness and Unemployment Cover typically costs £4.71 a month for every £100 of monthly assistance. This is based on a 36-year-old customer choosing £850 of accident, sickness and unemployment monthly assistance with claims paid after a 30-day deferred period.
The cost of this insurance depends on a number of factors including your age, your occupation and where you live.
A number of companies offer short-term income protection and other products designed to protect you against loss of income.
This covers the structure of the home such as the roof, walls, windows and long-lasting fittings.
This covers household goods, personal possessions and valuables within the home.