Protection Plans - Overview
The following is a brief guide to some of the different types of
life cover and other protection plans available. Whilst it's important to have protection in some form, either to
cover your mortgage or to protect your family, it's important that your protection is right for your needs,
so please call FREE 0800 567 0018 for a free, no obligation
appraisal, from which we can recommend a tailored package of
protection to suit your circumstances and budget.
- Level Term - The amount of cover stays fixed for the length of
the policy, and like all term assurance has no cash-in value. In the event of a claim a lump sum is
- Decreasing Term - The amount of cover reduces over the term of
the plan, although the premiums stay the same. This type of cover would most commonly be used to protect a
mortgage, and is also known as Mortgage Protection
- Renewable - This is very similar to level term, but carries a guarantee that at the end of the
term you can take out another such contract
- Family Income Benefit - (FIB) this pays out a regular amount like an income, and is most
suitable to protect a family in the event of a parent dying. It is a type of Decreasing Term Assurance plan,
and one of its advantages is that it is relatively inexpensive
Whole of Life Cover
- These normally have some sort of investment element, and the
aim of this type of contract is to provide a lump sum regardless of when you die
- The money you pay goes into a fund, and this fund is used to
pay for the cost of the life cover
the value of the fund is not enough to pay for the cost of the life cover, you will either have to reduce the
level of cover or increase contributions
- Such cover can be arranged to provide maximum level of life
cover and therefore very little investment, and a balanced basis with a greater level of
- This type of plan is commonly used to protect inheritance tax
liabilities, with the plan placed in trust
- If used for inheritance purposes then for a husband and wife
it would be on a joint life basis, on the death of the second person, (joint life second
Critical Illness Cover
- This type of cover is available either as a separate policy or
as an additional option on a life cover plan.
- It is designed to provide a lump sum on diagnosis of a
- Different providers cover different illnesses
- It is often used to protect a mortgage
- Cancer, heart attack and strokes account for the majority of
claims on these type of policies
Income Protection Plans
- This type of cover, although very different to critical
illness cover provides protection in the event of illness.
- It pays a regular income which can be used to pay your normal
bills if you are unable to work due to accident or injury.
- It pays out regardless of the illness, providing it prevents
you from working.
- Insurers will restrict the maximum level of benefit based on
- Unlike accident and sickness cover attached to mortgages which
often pays out for only 1 or 2 years, this plan would pay out until the end of the term if you could never
return to work.
Contact us now on
0800 5670018 for your
free, no obligation consultation.
Services 4 You Ltd of 201 Rodbourne Road Swindon SN2 2AA, is Authorised and regulated by the Financial
Conduct Authority. FCA Registration No. 518498.
Registered in England and
Wales No. 7120714. Registered address: 201 Rodbourne Road, Swindon SN2 2AA