The Prime Minister has announced an end to the remaining Covid restrictions which were imposed almost two years ago.

The Covid pandemic has had a profound impact on all of us and during this time many of us have questioned the way we live our lives. This has led to the phenomenon known as the ‘Great Resignation’, an idea proposed by Professor Anthony Klotz of Texas A&M University which predicts that a large number of people will leave their jobs after the Covid pandemic ends.

We have also seen the Covid pandemic trigger an ‘escape to the country’ as more people reconsider their living arrangements and wanting more green space as they work from home. No doubt some of these people will return to the cities after finding life in the country more challenging and disconnected than they thought.

Despite the restrictions imposed on us over the last two years life still goes on.

When Should You Review Your Protection Policies?

As many of us experience various life events, linked to the pandemic or not, one thing that often gets overlooked is Protection – an insurance policy that pays out should anything bad happen to us.

It is therefore important to review existing Protection policies or to put in place new policies when various life events occur, for example:

· Buying your first home with a partner.

· Having other debts and dependents.

· Getting married or entering into a civil partnership.

· Starting a family.

· Becoming a stay-at-home parent.

· Having more children.

· Moving to a bigger property.

· Getting divorced.

· Receiving salary increases.

· Changing job – does the new company offer the same benefits as before?

· Reaching retirement – for example no longer covered under a Death in Service Scheme.

How Much Cover Do I Need?

Once you have identified a need for cover, it is important that you have the right level of benefits in place. We would generally look at your expenditure and what this might look like if you or your partner died prematurely or were unable to work. For example, would there be increased childcare costs?

We would also look at any existing cover you might have, for example, from your current employer and take this into account when looking at setting up new policies.

We would also consider your level of savings and how long these would last.

When looking at the benefits being provided, it is always important to consider the impact of inflation on the sum assured.

Types of Protection Policy

We have set out below a list of the most common types of Protection Policy and their key features:

Level Term Assurance

Provides a lump sum for your beneficiaries in the event of your death over a specified term. You can choose the sum assured and the policy term, which is guaranteed at the outset and remains unchanged throughout the term.

Decreasing Term Assurance

Provides a lump sum in the event of your premature death to cover a reducing liability for a fixed period, such as a repayment mortgage.

Whole of Life

Provides a guaranteed lump sum paid to your estate in the event of your death. To avoid inheritance tax and probate delays, policies should be set up under an appropriate trust.

Family Income Benefit

Provides a replacement income for beneficiaries on your premature death. In the event of a claim, income can be paid monthly, quarterly or annually, and under current rules the income is tax-free.

Critical Illness

Insurance that provides a percentage of your lost income caused by an illness, accident or disability. Rates vary according to your occupation, age, state of health and gender.

Income Protection

Insurance that provides a percentage of your lost income caused by an illness, accident or disability. Rates vary according to your occupation, age, state of health and gender.

Peace of Mind

Having a suitable Protection planning strategy in place provides you with the reassurance that your lifestyle and that of your family can be maintained in the event of accident or illness or in the event of your premature death.

If you have recently had a life event and wish to discuss your Protection policies in more detail, please do get in touch.

Contact Us