Protection is there to help you and your family in a worst-case scenario. We always hope for the best, but it can be invaluable to prepare for the worst.
There are 3 main types of protection available.
Income protection insurance
This is a long-term insurance policy that gives you a regular income if you’re not able to work.
You receive this until you’re able to work again or you retire.
The insurance replaces part of your income, typically between 50-65%.
The payments usually don’t start immediately. You might have to wait for a period of time before you get the first payment. This ‘waiting period’ is the amount of time between not being able to work and receiving your first payment. It can be from 1 week up to a year depending on the terms of your policy.
Critical illness cover
This is a tax-free, one-off payment if you’re diagnosed with one of the illnesses that’s listed in the policy.
Some examples of these critical illnesses are: stroke, heart attack, certain types of cancer, multiple sclerosis, major organ transplants, Alzheimer’s disease, Parkinson’s disease
This insurance allows your loved ones to be provided for if the worst thing happens.
It’ll give your beneficiaries a set lump sum of cash if you pass away while covered by the policy.
You can choose the amount of cover you need based on your everyday money needs.
Other types of insurance include: pet insurance, home contents insurance, travel insurance, car insurance and personal indemnity insurance. Personal indemnity insurance helps protect your business in case a client loses money after using your product or service.