Income Protection Policy.

Life Assurance Cover

Life insurance pays out a cash lump sum if you die within the term of the policy. Cover is usually on a level or decreasing basis. With level term the amount of cover remains the same throughout the policy.With decreasing term, the amount of cover reduces over the term of the policy.

Critical Illness Cover

Critical illness insurance, otherwise known as critical illness cover or a serious illness policy, is an insurance product in which the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses on a predetermined list as part of an insurance policy . This insurance can provide financial protection to the policyholder or their dependents on the repayment of a mortgage due to the policyholder contracting a critical illness condition or on the death of the policyholder. In this type of product, some insurers may choose to structure the product to repay a portion of the outstanding mortgage debt on the contracting of a critical illness, whilst the full outstanding mortgage debt would be repaid on the death of the policyholder. Alternatively, the full sum assured may be paid on diagnosis of the critical illness, but then no further payment is made on death, effectively making the critical illness payment an 'accelerated death payment'.

Family Income Benefit

Family Income Benefit is a life insurance policy that pays an income to dependants on the death of the insured. The income is payable for the remainder of the policy term. These policies are suitable for people with young families who wish to protect against the loss of income provided by either or both parents.

Whole of Life Cover

 'Whole Life Insurance Policy' A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured.

Over 50' Life Cover

An over 50s policy is a whole-of-life insurance policy designed to leave your loved ones with a tax free lump sum in the event of your death. This lump sum could be used to pay for funeral costs, household bills or simply as a financial gift for your family.

Income Protection Cover

Income protection insurance is a long-term insurance policy to help you if you can’t work because you’re ill or injured.

  • It replaces part of your income if you can’t work because you become ill or disabled.
  • It pays out until you can start working again, or until you retire, die or the end of the policy term - whichever is sooner.
  • There’s a waiting period before the payments start. You generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the monthly payments.
  • It covers most illnesses that leave you unable to work, either in the short or long term (depending on the type of policy and its definition of incapacity).
  • You can claim as many times as you need to, while the policy lasts.

Short Term Income Protection

Short-Term Income Protection Insurance is not intended to cover specific payments (such as loans or a mortgage). It gives you an income which you can use for any purpose if you are unable to earn because you have an accident, or become sick or unemployedbut will limit payouts to a 12 or 24 month period.  It's designed to pay you an agreed monthly amount during a short period (usually 12 months) when you can't work because of an accident, sickness or redundancy. When you make a claim you have to wait a set number of days before you start to receive a monthly payment.

Payment Protection Insurance

also known as accident, sickness & unemployment cover

Payment protection insurance (PPI), is designed to help you keep up with a mortgage, loan or credit repayment if you’re unable to work because you’re ill, had an accident or made redundant.

Most people use PPI to cover financial commitments such as their mortgage, credit card payments or loan repayments. Making sure you’re able to cover these debts will help keep you out of debt if you do find yourself unable to work. Policies can be tailored to suit individual requirements e,g. accident, sickness and/or unemployment, as with short term income protection if you claim you will have to wait a set number of days before you start to receive a monthly payment.


Mortgage payment protection insurance: The facts

Long-term sickness, an accident which prevents you from working or redundancy can hit you hard in the pocket and put your home at risk. Mortgage payment protection insurance covers your monthly repayments if you can no longer make them.

Typical MPPI policies will cover mortgage payments for up to two years and will pay up to £2,000 a month or around 65% of your monthly income (whichever is lower), providing protection when you need it most.

Some facts about Payment Protection Insurance

What are the different types of MPPI?

There are three main types of MPPI policy: unemployment only, accident and sickness only and accident, sickness and unemployment.

Unemployment only will cover you if you are made redundant (you also need to be registered with the government as unemployed and you have to be actively seeking work).

Accident and sickness will protect you against accidental injury that stops you working and long-term illness (this will have to be certified by a doctor to claim) while accident sickness and unemployment will protect you against both.

When does the policy pay out and how long do I have to wait before I can claim?

Each MPPI policy will come with a deferred period (or excess period) and you will also have the option to add back to day one cover.

The deferred period is the time you will have to wait before you start receiving payment and usually ranges from 30 to 90 days. For example, if you had a 30 day deferred period you would start receiving monthly payments 30 days after you submitted your claim.

Back to day one policies backdate your payments from the day the cover started. So if you had a back to day one policy with a 30 day deferred period you would receive two monthly payments after the deferred period.

A sensible saver will have at least two mortgage payments in a savings account to ensure they are not out of pocket.

Do I need cover?

Before you shell out on MPPI make sure that the product is right for you and you need the protection that it offers. Your circumstances may mean that you may not need cover for accident, sickness and unemployment so consider your position carefully before you buy.

You may get a large redundancy pay out

If you will net a bumper a redundancy package you may not require MPPI cover but may need protection if you fall ill and can no longer work. However, even if you feel you are due a large payout, if this doesn’t happen statutory redundancy may be significantly less. The best approach is to work out how long your redundancy pay, and any savings, will last taking into account the cost of your other household costs such as food and energy.

You may get help from the Government

MPPI may be unnecessary if you are entitled to help from the Government with your mortgage. Personal details, such as the size of your mortgage, your savings and the chance of your house being repossessed, will affect what you are able to claim. However, the most the government will pay is your interest. MPPI covers your full repayment and associated costs. For more information on Government help you check out

You may get substantial sick pay

Some employees, usually in the public sector, receive generous pay if they have an accident at work or long-term sickness strikes. If you are likely to receive a favourable amount of sick pay, an MPPI policy which only covers redundancy might be the best option.

You may be already covered

Many other policies cover similar circumstances; the most common is permanent health insurance which pays out a proportion of your salary if illness prevents work but does not cover unemployment. It is usually more expensive, but it pays out for a longer period of time and can be used in conjunction with unemployment-only MPPI. It may also be the case that your work provides you with some form of cover, so check.



Income Protection


Income Protection is designed to pay you a regular tax free monthly income if you are unable to work due to illness or injury.

Critical illness provides a lump sum if you are diagnosed with any of a list of specified illnesses during the policy term i.e. cancer, heart attack, diabetes etc. This can be used to either pay off your mortgage or provide a lump sum if you cannot work due to your illness. Again you are still responsible for your mortgage even if you cant work so you need to make sure you and your loved ones are adequately protected

Critical Illness


Have you thought about how you and your family would cope financially if you became ill? Check out our Critical Illness quotes to help protect your future.

This will help protect your family in the event of your death. Your mortgage debt does not die with you, so if you don't have life insurance this would mean your family would be left to keep paying the mortgage in the event of your death, they may not be able to afford to do this so could potentially lose their home. Life insurance can ensure the mortgage is repaid so you can leave your family the house mortgage free.

You don't just have to cover your mortgage with life insurance, you could also take out a larger policy to provide an additional lump sum in the event of your death

Life insurance pays out a cash lump sum if you die within the term of the policy. Cover is usually on a level or decreasing basis. With level term the amount of cover remains the same throughout the policy.With decreasing term, the amount of cover reduces over the term of the policy.

Life Assurance


Help protect your home, your standard of living and provide a nest egg for your family in the future with our range of Life Assurance products.