News & Blog

Protection myths

18th February 2020

We largely view ‘death’ as the most likely ‘bad’ health event that could affect us across our working lives. Yet, you are far more likely to face a serious illness, or be off work for a lengthy period than die during your working life.

But possibly of greater importance is to consider further protection that’s designed to lessen any loss of income should you face a serious illness, or be off work for a lengthy period.

There are two product offerings that can help protect you in these circumstances:

Critical Illness Cover – pays out a lump sum when you have a specified critical illness.

Income Protection – pays you a percentage of your monthly income when you can’t work due to illness or injury.

Do I even need it?

This is a possible further misconception, particularly as you may feel that it’s difficult to contemplate needing a protection policy, until you really need it!

Additionally, some will think that their employer will provide all of the support needed. This may be true, but do check your contract to establish the level of financial help you’d get, and (if it’s not for death in service) for how long. Balance this with the care you receive from the NHS, and the limited financial support from benefits such as Statutory Sick Pay and Universal Credit.

Mental Health issues

In recent years there has been a far greater understanding of the need to deliver real and financial support to those insured who may suffer a mental health issue. Also, those that have previously faced this might feel that they would then be excluded from taking out future cover, such as Income Protection. However, some insurers may now take a more considered approach, rather than the standard ‘accept’ or ‘decline’ decision-making.

Added-value benefits

The insurance industry recognises that a payout upon claiming may be the initial driver in setting up a policy. But it’s also aware that there is a real benefit – for both parties – if a relationship is maintained throughout the policy term, as reflected by the following examples:

– Incentives to keep healthy.

– Specialist support – such as GP/nurse helplines, telephone counselling, carer support services, consumer rights, early intervention and rehabilitation services.

With such a wide range of options on offer, do talk to us, and you may also be pleasantly surprised at how little a plan might cost.

As with all insurance policies, terms, conditions and exclusions will apply.

Please talk to us to see if we can help you (or a family member) step onto the property-owning ladder. Get in touch with us on 01609 760960. Or arrange a call back and one of our mortgage brokers will be happy to help.

Reference – BL090 – Feb – 20

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Regulatory Statement

Gale and Phillipson Investment Services Ltd, Gale and Phillipson Advisory Services Ltd, Gale and Phillipson General Financial Services Ltd and Gale and Phillipson (SE London) Ltd are all authorised and regulated by the Financial Conduct Authority (Reference Numbers 431387, 142752, 195080, 195522).  Gale and Phillipson (Herts) Ltd and Gale and Phillipson Consulting Ltd are appointed representatives of Gale and Phillipson Advisory Services Ltd.  Gale and Phillipson (Surrey) Ltd is an appointed representative of Gale and Phillipson Investment Services Ltd. (Reference Numbers 615821, 811525, 703337). All companies trade under the name Gale and Phillipson and are registered in England and Wales numbers 05409822, 02232959, 03751076, 04077157, 08864945 and 04823391.  Registered office for all companies is Gallowfields House, Fairfield Way, Richmond, DL10 4TB.

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