Question 1

Do I have to pay for protection advice?

Accepted Answer

No. Protection advice is provided at no cost to you. Your adviser is paid a commission by the product provider if you take out a policy. This does not affect the price you pay.

Question 2

What's the difference between life insurance and critical illness cover?

Accepted Answer

Life insurance pays out if you pass away during the policy term. Critical illness cover pays a tax-free lump sum if you're diagnosed with a specified serious illness. They protect against different risks and many people have both.

Question 3

What does income protection cover?

Accepted Answer

Income protection replaces a portion of your income (typically 50–70%) if illness or injury prevents you from working. It pays out monthly until you return to work, reach retirement age, or the policy ends.

Question 4

How much life insurance do I need?

Accepted Answer

A common approach is to cover your outstanding debts plus enough to provide several years of income for your family. Your adviser will help you calculate the right amount based on your circumstances.

Question 5

Can I get protection if I have a pre-existing health condition?

Accepted Answer

Yes, many people with health conditions can get cover. Premiums may be higher or certain conditions excluded, but specialist providers exist. Your adviser searches the whole market to find suitable options.

Question 6

What is family income benefit?

Accepted Answer

Instead of paying a lump sum, family income benefit provides a regular monthly income to your family for the remainder of the policy term if you pass away. It's often more affordable and practical than traditional life insurance.

Question 7

Do I need protection if I have employer cover?

Accepted Answer

Employer death-in-service and sick pay benefits are valuable, but they're tied to your job. If you leave or lose your role, the cover stops. Personal protection stays with you regardless of your employment situation.

Question 8

What is writing a policy 'in trust'?

Accepted Answer

Writing a policy in trust means the payout goes directly to your named beneficiaries without forming part of your estate. This can help avoid potential inheritance tax and ensures faster payment to your family.

Question 9

How long does it take to set up a protection policy?

Accepted Answer

Most policies can be set up within a few days. Some may require medical screening or GP reports, which can take a few weeks. Your adviser will guide you through the timeline.

Question 10

Can I cancel my protection policy?

Accepted Answer

Yes, you can cancel at any time. However, if you cancel a pure protection policy, you won't receive anything back — it's not a savings product. Consider speaking to your adviser before cancelling to understand the implications.

Protection FAQs

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