Protection Plans

While not commonly associated with wealth management, protection plans are a key part in ensuring that you have the support and finances to achieve all your future goals. It is expected that most people around the world will have to deal with a serious illness or injury at least once in their life; however the stress that these situations cause can be hard to deal with, especially if your situation prevents you from working. Protection plans are there to protect you; should an unfortunate situation occur in your future a protection plan will make up for the loss of income by providing a financial benefit and will still allow you and your family to have the support for your future. The main types of protection plans are Term life and Whole of life insurance, disability income protection, and critical illness insurance.

Term Life insurance

Term life insurance is designed to provide financial support to your loved ones in the event of your untimely death. These plans are time specific and will only provide coverage for a predetermined time period (usually from 5 to 35 years in duration). In the event that the policyholder dies during the “term” or currency of the plan, the policy will then provide a cash benefit to the policyholder’s family. This benefit is usually directed towards paying for your children’s education, any bills associated with the death, outstanding mortgage payments, estate duties, and goes towards easing the burden on your loved ones after the loss.

The term life policy will only provide reimbursement if the policyholder dies within the plan specific time frame. However, it is important to note that the premiums associated with a term life policy will not fluctuate over the course of the plan, and because of this these types of policies provide low cost, high quality protection for extended periods of time. These types of policies are extremely good for ensuring that you have the protection that you need without spending too much money.

Whole of Life Insurance

In the event of your death how would your family cope? If you were to develop a serious illness or medical condition at a latter stage of life what would you do? Whole of life insurance policies are designed to be extremely flexible while offering your family the most comprehensive financial protection available in the event of your death or an unexpected situation. This type of plan will provide you with the protection that you need for your entire life while building a cash value that will be reimbursed in the event that the policy is ever cancelled. This will give you an extra level of flexibility and allow you to reclaim money if you ever find yourself in financial difficulties.

Whole of life insurance gives the policyholder a wide range of options to choose from including additions for benefits that protect against critical illness, serious injury, hospitalization, family income protection, and long term care. Plans will also allow you to choose the premium, where you would like your funds to accumulate, how you pay, and the plans beneficiaries. Whole of life insurance gives you the security that should anything happen your family will be protected with the addition of the fact that should you need the money you are able to cancel the plan and receive the benefit of your savings.

Critical Illness Insurance

Critical illness insurance is designed to protect you and your loved ones against the burdens associated with a serious illness or medical condition. In the event that you are unable to work due to illness or are having to deal with large treatment bills because of a serious medical condition a critical illness plan will provide you with the protection and support that you need by offering a lump sum benefit when you receive a diagnosis of a serious medical condition. This benefit will help to cover the costs of medical treatment and lifestyle adjustments and will lessen the financial impact that comes when you are unable to work.

In the modern world having to cope with a serious illness or disease can be hard, especially if you are unable to work and are not receiving any income. An investment in a critical illness plan is an extremely good option for people who are looking to secure their families well being in the event that they become seriously ill.

Disability Income Protection

Disability income protection works in much the same way as a critical illness insurance plan and will help a policyholder continue to pay for their living expenses in the event that they find themselves unable to work. Where this type of investment differs from critical illness insurance is in the time frame associated with the policy. Normally this type of plan will continue to pay up to 75% of your monthly income until you reach retirement, giving you the security that you need over a long period of time. In addition to this disability income protection plans will always adjust the benefits that they are index linked and will be adjusted with current inflation levels, this means that you are assured that the plan will be able to protect you until you can return to work.

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