Income protection

What is Income Protection?

Income protection is a policy that replaces your income that was available to you and your family in the event of death, ill health, injury or being signed off work by a doctor for any specific health related reasons.

It’s paid tax-free and will help to protect your finances & income. You could use the proceeds to maintain your mortgage payments and everyday bills leaving you to concentrate on your recovery and taking away any stress.

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Income Protection Policies

The main types of policies are explained here:

Lump sum critical illness

• Pays a lump sum upon diagnosis of a specific condition (usually very serious conditions like cancer/heart attack/stroke etc).
• You can choose to be paid in a lump sum straight away, or receive your proceeds over a period of time, thereby replacing lost income due to being unable to work.

For example: If £10,000 per year is needed.  With an assumed growth rate of 4%, the calculation would be:  £10,000 / 4 x 100 = £250,000 sum assured needed.  Simply put by investing £250,000 if you get a growth rate of 4% you may be able to assume £10,000 income for life.  Obviously, this takes no account of inflation and depends on investment returns which are by no means guaranteed but helps explain one of the methods we may use to calculate what you need!

ASU (Accident, Sickness and Unemployment)

• ASU plans pay a regular income, usually for a fixed period. 
• Usually, shorter-term policies only paying out for a maximum period of 1 or 2 years only.
• Designed to relieve shorter term financial pressures caused by short term illnesses or even redundancy.

e.g. If your household bills are £1,000 per month, an ASU policy will pay this income to you in the event you are unable to work though accident, illness or redundancy. 

PHI (Permanent Health Insurance)

• Like an ASU policy (but excluding redundancy) in the event of accident or sickness it will basically replace your wages or salary.
• Monthly amount is paid until the end of a longer specified term and usually age related or designed to stop paying at retirement for example.
• PHI plans are permanent and once in payment will not be stopped unless you return to work and recover or die.
• Not just paid for shorter periods of time (like ASU) and could pay out many hundreds of thousands of pounds over the term!

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What you get with Financial Fortress

Professional and qualified advisers 

No cost or obligation initial review meeting.

A personal named and dedicated expert dedicated to you!   

No cost or obligation financial review for everyone! We offer personalised advice via your own named and dedicated adviser, either in person, over the phone or using modern video-conferencing!

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