Permanent health insurance, also known as income protection insurance, is a type of insurance policy that provides financial support to individuals who are unable to work due to illness or injury. The policy pays a regular income to the policyholder, typically a percentage of their pre-disability earnings, until they are able to return to work or until the policy reaches its expiration date (which is often set at age 65 or 67). The purpose of permanent health insurance is to help individuals maintain their standard of living and cover expenses such as bills, mortgage payments, and living expenses while they are unable to work.

Mortgage Protection

Mortgage protection is a life assurance policy designed to repay the outstanding balance on your mortgage if an insured person dies during the policy term. The level of cover normally reduces broadly in line with the outstanding mortgage balance.

Mortgage protection is generally required when taking out a mortgage on your principal private residence, although limited exceptions may apply. Your lender will confirm whether mortgage protection is required in your particular circumstances.

Standard mortgage protection provides cover for death. Additional benefits, such as specified serious illness cover, may be available at an additional cost. Income protection, disability cover and redundancy cover are separate products and are not automatically included in a standard mortgage protection policy.

At Progressive Financial Services, we can help you review suitable mortgage protection policies from the insurers available to us. We will explain the relevant benefits, exclusions, costs and optional additional cover before you decide how to proceed.

Please note that terms, conditions and exclusions apply. Cover is subject to underwriting and acceptance by the insurer.

Arranging Mortgage Protection

1. Assess your protection needs: Consider the amount and term of your mortgage, your personal circumstances and whether you require any additional benefits.
2. Compare available policies: Review suitable policies from different insurers, taking account of the cost, benefits, exclusions and policy terms.
3. Choose a suitable policy: Select a policy that meets your mortgage requirements, protection needs and budget.
4. Complete an application: Submit an application containing the personal, financial and medical information required by the insurer.
5. Underwriting and assessment: The insurer will assess your application and may request additional medical or other information before deciding whether it can offer cover and on what terms.
6. Review the policy terms: If cover is offered, carefully review the benefits, exclusions, premium, policy term and any special conditions before accepting the policy.
7. Maintain your cover: Pay the required premiums when due to ensure that your policy remains in force.
8. Review your protection: Review your mortgage protection periodically and whenever your mortgage or personal circumstances change, to ensure that the cover remains suitable.

Term Assurance

Term assurance is a policy that is designed to financially protect your loved ones in the event that you pass away. It pays out a lump sum or an income on death that can be used to supplement the loss of income to the home. How much you need is completely dependent on your personal circumstances. If you are self-employed or an employee in non-pensionable employment, you can take out a term assurance policy via a ‘Pension Term Assurance’ policy and the premium is tax-deductible.

Term assurance is a type of life insurance policy that provides coverage for a specified period of time, or term. It pays a benefit to the beneficiary in the event of the policyholder’s death during the term of the policy. Term assurance is typically less expensive than permanent life insurance, which provides coverage for the entire lifetime of the policyholder. The premiums for term assurance are typically fixed, and the policy does not have a savings or investment component like some permanent life insurance policies.

Term assurance is often used to provide financial protection for a specific need, such as covering a mortgage or providing income for a family. It can be a good choice for someone who only needs life insurance for a limited period of time, or for someone who is on a tight budget and wants to minimize the cost of life insurance. If there anything else you would like to know about term assurance please get in touch.

Serious Illness Cover

Serious illness cover pays out a lump sum in the event of being diagnosed with a specified serious illness listed within the policy conditions. The lump sum can be used in whatever way you desire, for example, paying off medical expenses or to supplement income for a number of years.

Serious illness cover is a type of insurance policy that provides financial support to policyholders if they are diagnosed with a serious or terminal illness. It is designed to help policyholders pay for medical expenses, make up for lost income, and cover the costs of adapting their homes or vehicles to accommodate their illness. Serious illness cover can provide financial peace of mind to policyholders and their families during a difficult time. It can be purchased as a standalone policy or as an add-on to a life insurance policy.