Protection FAQ

Here, we look to answer some of the most frequently asked questions relating to protection policies. 

To find out more, or if you want to speak to an expert about your specific circumstances, contact a member of the Navigate Wealth team on 0345 340 9690 or use our submission form.

What is income protection insurance?

Income protection insurance is a long-term insurance policy designed to help if you are unwell or injured over a long-term basis. Such policies ensure that you will still receive a regular income until you retire or are able to return to work. 

Why do I need income protection insurance?

It helps to ensure you do not fall behind with your monthly bills - including your mortgage - if you are ever unable to work for a long period of time due to illness, injury or disability.

Can I get income protection insurance if I am self-employed?

If you are self-employed, you can still take out income protection insurance. However, you may want to select a policy by which you can start to receive payments from as early as possible if you become unwell. 

Why is life insurance important?

People usually take out life insurance because they wish to provide financial protection for their loved ones in the event of their death. This could be used to pay off a mortgage or to provide a fixed-income or lump sum for their family. 

Do I need life insurance to take out a mortgage?

Mortgages are a long-term financial commitment, and for many people, account for the single largest purchase they will ever make. With this in mind, it is important to consider how you would maintain future mortgage payments, should you suffer a loss of income or in the event of your death.

Income protection, critical illness or life insurance can provide peace of mind that could prevent you or your family from losing a property.

How much life insurance protection do I need?

The amount of cover you will need depends on your individual circumstances. In the event that you have a large mortgage and a big family, it makes sense to have more cover than if you have a small mortgage and small family. 

Speak to your financial adviser about how much you would need based on your individual needs. 

What is the difference between life insurance and critical illness insurance?

Life insurance and critical illness cover are sometimes sold together, but they are not the same thing. Critical illness insurance can be added to a life insurance policy, but can also be sold as a standalone plan. 

Life insurance will only be paid out in the event of the death of the person insured, whereas critical illness policies will pay the benefit if you are diagnosed with one of a number of medical conditions outlined in the policy. 

What is classed as a critical illness?

The types of critical illness that you can be insured against include: 

  • Heart disease 
  • Cancer - of various types and stages 
  • Stroke 
  • Multiple Sclerosis

Not all medical conditions are covered by critical illness policies, and some state how serious a condition must be before paying out, so it is important that you understand a policy before you commit. 

Can I insure my partner?

Many couples choose to take out joint life insurance as the premiums for joint cover can be less than they are individually. However, joint policies only pay out once, in the event of the first death. If the surviving partner then wants to arrange their own policy, it is likely to be more expensive because they will be older. 

What factors affect insurance calculations?

The monthly costs of insurance vary considerably and are dependent on a range of factors, including: 

  • Your age 
  • Your health - including your weight, current health and medical history 
  • Whether you smoke or have previously smoked 
  • Your job 
  • The length of your policy 
  • The amount of money you wish to cover

The younger and the better health you are in, the less you can expect your policy to cost.

Further questions?

If you have more questions about protection insurance, or if you want to speak to an expert about your specific circumstances, contact a member of the Navigate Wealth team on 0345 340 9690 or use our submission form.

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