The following text is designed to give you a basic understanding of the protection products we offer.
Information correct as of June 2020.
Types of Protection Products
Here at Index, we can provide a number of different types of protection products which can help you and your loved ones.
Level Term Assurance/Convertible Term
Indexed Linked/Decreasing Assurance
Income Protection Assurance
Relevant Life Cover
Whole of Life Assurance
Level Term Assurance
This is the most common type of protection we provide here at Index. The two main components of this type of insurance is the ‘term’ and ‘sum assured’. The term is how long the assurance company will commit the give you the insurance for. The other component of Level Term assurance is the ‘sum assured’. This is how much the insurance company will provide when you die. As this is level term assurance this amount will stay the same throughout the whole term of the assurance and is designed to cover your mortgage for the duration of the loan.
Indexed Linked/Decreasing Assurance
Indexed Linked/Decreasing Assurance is very similar to Level Term Assurance but with one noticeable change, the amount of cover decreases over the term of the assurance. Usually, the amount of cover is linked to your mortgage balance and remains at the same level as the mortgage balance.
In comparison to Level Term Assurance, these are both vital tools in covering you and your family’s financial health if anything was to happen to you. Indexed Linked/Decreasing insurance is typically a cheaper option to Level Term as the amount is decreasing, so it may be suitable for people on a tight budget. Depending on your current circumstances the type of cover we will recommend will differ.
Critical Illness Cover
Critical Illness Cover is an assurance policy that covers if you get one of the illnesses that are listed within a policy. The list of illnesses that are covered in a policy differ from insurer to insurer. If you are diagnosed with one of the illnesses that are listed in the policy, the insurer will pay out a one-time payment and the policy will end. Don’t confuse this type of cover with Life assurance as they differ in many ways, although they are usually sold together. Depending on your current circumstances, Critical Illness cover may not be needed for you. You may have employee benefits to cover your income, savings built up to cover yourself, however, if you do not have any form of savings and other income, then Critical Illness cover may be right for you.
Income protection provides you with cover if you are unable to work due to an injury or illness. This is designed to cover your income until you can return to work, retire, die or the term expires. Depending on the policy you take out will depend on how long payments will be made for. In addition, unlike critical illness cover, you are able to claim multiple times if you need to during the term of the policy. As with all protection products, the different types of injuries and illness that are covered by a policy, differ from insurer to insurer.
Knowing whether income protection is right for you will depend on your current employment and employee benefits as they may cover your income while you're unable to work. However, if your self-employed then this may be an option for you to cover your income.
Relevant Life Assurance
Relevant Life is an assurance policy for employers to give to employees which provides them with a ‘death in service’ benefit. It provides a one-off payment if an employee under the policy dies or is diagnosed with an illness which is outlined within the policy. The aim of this types of cover is designed for employers looking to provide a ‘death in service’ benefits for their employees, directors to provide themselves with a ‘death in service’ benefit and for high net worth individuals who’s ‘death in service’ benefits are not covered in their lifetime allowance. The other main selling point of relevant life assurance is that it is a tax-efficient way of providing protection as the premiums paid by the company are usually an allowable expense.
Whole of Life
A whole of life policy will pay out a lump sum when you die. This type of cover does not have a term and the only time it expires is when you die. The premiums will be paid up to a specific age or when you die. As this type of insurance last’s your whole life the premiums are typically higher than other types of assurance. The amount of cover you need will differ throughout your life, for example, you may pay off your mortgage and your family may not need as much. Some insurers will let you review your policy at set times, i.e. every 10 years. There are different types of whole of life policies which have an investment element, which the insurer will invest some of the premiums and the amount that will be paid out will depend on the performance of the investments made with the premiums. Whether a basic or investment-linked whole of life policy is right for you will be discussed.
In summary, there are many different types of protection assurances available and the ones mentioned above are just some of the protection product we offer. Feel free to give us a call and we would be happy to discuss your needs. All the factors will be discussed in detail before we make a recommendation.
This is for information purposes only and should not be used to apply for any insurance policy or product
PLEASE BE AWARE THAT PRICES AND AMOUNTS OF ASSURANCE WILL DEPEND ON YOUR CURRENT HEALTH AND LIFESTYLE. WE (INDEX FINANCIAL SERVICES LTD) DOES NOT ACCEPT RESPONSIBILITY TO REJECTED CLAIMS FOR OUR WRITTEN POLICIES IF FALSE INFORMATION IS PROVIDED UPON APPLICATION