Protection

Protection

Protection for You, Your Family & Your Home

Life Insurance

Life insurance policies provide you and your family with a lump sum payment or a series of monthly payments if you were to die.

Typical types of cover include:
Level term insurance – designed to pay out a sum of money if the policyholder dies during the policy’s term. The sum assured is guaranteed and remains unchanged throughout the term.

Decreasing term insurance – where the sum decreases during the policy. It is regularly used to protect capital and interest repayments on a mortgage.

Family income benefit – a term life insurance product that, as the name suggests, is designed to provide a monthly income to dependants in the event of a claim, rather than a cash lump sum.

Critical Illness Cover

Critical illness is most commonly added to a mortgage protection life policy to pay the outstanding mortgage debt on diagnosis of a specified critical illness.

The likelihood of living through a critical illness is increasing as modern medical diagnostic techniques and treatments are constantly improving.

A number of the conditions covered by the policy may mean that you become less able bodied which could result in you having to give up work entirely, take a less demanding job with less pay or only be able to work reduced hours due to your incapacity.

If you are diagnosed with a specified critical illness during the policy term then the insurer will pay out the policy amount covered which will enable you to pay off your mortgage debt in full. This can be invaluable as it means you no longer have to make the monthly mortgage payment as you own your property outright. This can reduce the emotional and financial impact from you and your family during a potentially difficult time.

Income Protection

An income protection policy pays a proportion of your salary if you’re unable to work because of sickness or injury.

Policies usually have a deferred period typically based on when your employer ceases to pay your salary or sooner if you are self-employed. The policy aims to provide a continuous monthly income.

The length of time you receive payments depends on the policy you choose, which can be anything from just two years per claim or long term- typically your state retirement age or longer.

The amount of income protection insurance you need will be determined by the salary that you want to insure. Generally, income protection provides cover for about 60% of your gross annual salary, however, you will not be taxed on any benefits that are paid out by the insurers.

You need to consider what the costs of meeting a mortgage and other debts will be, as well as providing for a partner, children or other dependants. The point of income protection insurance is to provide an income stream if you can no longer work through accident, sickness or illness.

Buildings and Contents

Buildings insurance usually covers the bricks and mortar of your property and possible events such as fire, flood, storm damage and subsidence.

Contents insurance covers all the possessions within your home.

If you have a mortgage then it is likely to be a condition of the lender that buildings insurance is in place, however, most people will also insure their contents as the cost of replacing these can run into many thousands of pounds.

Home Insurance services are referred to a third party. Neither PJH Mortgage Solutions Ltd nor PRIMIS are responsible for the service received.
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