Income protection insurance, also known as disability income insurance or income replacement insurance, is a type of policy that provides financial support if the policyholder becomes unable to work due to illness or injury. The policy pays a regular income to the policyholder during the period of incapacity, offering a crucial financial safety net.

Terms and Payment Periods: The coverage period can be set for however long you like, which is usually up until retirement age. Short-term and long-term income protection policies are available. There is typically a waiting period, known as the 'deferred period', before benefits begin. This waiting period can range from a few weeks to several months, and the longer the waiting period, the lower the monthly premiums.

Premiums and Payouts: Premiums are based on factors such as the policyholder's age, occupation, health, and the chosen coverage amount. Payouts are usually tax-free and can be used for any purpose, including living expenses, mortgage payments, and medical costs. Different providers will cover a specified percentage of your salary up to a certain amount, your advisor will be able to confirm which policies will be best suited based on your circumstances.

Financial Security: The primary benefit is the financial security it provides. If an illness or injury prevents the policyholder from working, the regular income from the insurance helps maintain their financial stability and cover essential expenses. Income protection insurance ensures that mortgage payments, loan repayments, and other financial obligations can still be met, reducing the risk of financial strain and potential debt accumulation. The policy also helps individuals and their families maintain their lifestyle, covering everyday living expenses, such as food shopping and utilities. Knowing that there is a financial safety net in case of incapacity provides peace of mind for both the policyholder and their family.

Income protection insurance is particularly important for individuals who rely on their income to meet financial obligations and maintain their standard of living. It's a valuable component of a comprehensive financial plan, providing a layer of protection against unforeseen circumstances that could impact earning capacity.

Unfortunately, illness is a fact of life. Critical illness cover is an insurance policy that provides a lump-sum payment in the event of the policyholder being diagnosed with a covered critical illness or medical condition. This type of insurance is designed to offer financial support at a challenging time, helping individuals and their families manage the financial impact of a serious illnesses.

Covered Critical Illnesses: Critical illness policies typically cover a range of serious medical conditions. Common covered illnesses include cancer, heart attack, stroke, multiple sclerosis and dementia.

Lump-Sum Payout: If the policyholder is diagnosed with a covered critical illness and survives a specified waiting period, the insurance company pays out a lump-sum benefit. This lump sum is generally tax-free and can be used as the policyholder sees fit.

Waiting Period: There is typically a waiting period, often known as the "survival period." The policyholder must survive for a specified duration after the diagnosis for the benefit to be paid.

Policy Terms: Premiums are determined based on factors such as the policyholder's age, health, coverage amount, and the chosen policy term. Policy terms can vary, providing options for short-term or long-term coverage. Critical illness policies often have exclusions for pre-existing conditions, and there may be waiting periods for specific illnesses to prevent fraud or abuse.

It is natural as a parent to worry about the health of our children. Children's critical illness insurance helps bring peace of mind when it comes to our children’s health by covering them for a range of medical treatments in a variety of circumstances. This type of insurance is designed to offer support to families facing the emotional and financial challenges associated with a child's serious illness.

With most providers, children's critical illness is an addition to the parents critical illness policy at an extra cost and there are 2 types of cover for children.

Standard and Enhanced Children's Critical Illness: Standard cover for children covers the basics and the lump sum is usually less than a standard adult policy. Enhanced cover usually means higher payouts and has more conditions included, meaning your little ones will have extra cover. The extra cover that comes with enhanced can range from; death, total and permanent disability and cover whilst the mother is still pregnant.

Covered Critical Illnesses: Critical illness policies typically cover a range of serious medical conditions. Common covered illnesses include cancer, heart attack, stroke, multiple sclerosis and dementia. When it comes to Children's Critical Illness, the terms will be different from an adults cover and every provider will have different criteria that can trigger the payout. Children can be covered before they are born and it will last usually up until they are 21 years of age.

Why you might need children’s benefits: For the same reason you might want any type of critical illness cover – to know that, on a successful claim, you’d get a tax‐free lump sum to help you through a difficult time. The money might be put towards travel expenses to get treatment in hospital, adapting your home with equipment to aid recovery, childcare costs, helping make up for any lost income, if you have to stop working, taking your child and family on days out whilst they recover.

Family Income Benefit (FIB) insurance is a type of life insurance that provides a regular, tax-free income to the beneficiaries if the policyholder dies during the policy term. Rather than a lump-sum payment, FIB pays out a steady stream of income, offering financial support to the family over a specified period.

Income Payout: In the event of the policyholder's death during the policy term, the insurance company pays out a regular income to the beneficiaries, acting as an income replacement. This income is typically paid monthly and continues until the end of the policy term to offer ongoing financial support to cover living expenses, mortgage payments, education costs, and other financial needs.

Policy Term: Family Income Benefit policies have a fixed term, usually aligned with the period during which the policyholder's income is most critical for the family, such as the duration until the youngest child reaches adulthood or completes education.

Tax-Free Benefit: The income paid out to beneficiaries is usually tax-free, providing a more efficient way to support the family's financial needs.

Decreasing or Level Benefit: FIB policies may offer either decreasing or level benefits. In a decreasing benefit, the income paid out decreases over time, mimicking a decreasing financial need (e.g., as children grow up). In a level benefit, the income remains constant throughout the policy term.

Premiums: For Family Income benefit, the premiums are typically lower than those for traditional life insurance with a lump-sum payout, making it an affordable option for families seeking an income protection policy if the policyholder were to die during the term.

Clear Purpose: The income from FIB is specifically designated for the family's financial needs, providing clarity on how the funds should be used. FIB policies are often more affordable than traditional life insurance policies with lump-sum payouts, making them accessible to a broader range of families.

Family Income Benefit insurance is particularly suitable for families with dependents who rely on the policyholder's income. It provides a practical and cost-effective way to ensure ongoing financial support for loved ones, even in the unfortunate event of the policyholder's death.