There are so many protection products and insurance policies available in the marketplace – but what do they all mean and which one is right for you?
Key Person Insurance
This covers a business against the loss of a key employee if they die or are diagnosed with a critical illness. The value of the lump-sum pay-out, which is chosen at the outset of the policy, can be used to cover recruitment and training costs for a replacement member of staff.
Read more: A beginner’s guide to key person insurance
If a director or a shareholder dies, or is unable to carry out their duties due to a critical illness diagnosis, this type of policy can allow for the surviving business partners to buy the deceased shareholder’s shares, allowing the company to remain trading.
Relevant Life Assurance
This allows employers to provide an individual death-in-service benefit for an employee. It is designed to provide a lump-sum to the employee’s family if they die during the length of the policy.
This is a policy that will pay out on the death of a policyholder within a fixed-term, which is chosen at the start of the policy. They can be held as a single or joint policy and on a level or decreasing basis, depending on the needs of the policyholder.
Critical Illness Cover
This covers the diagnosis of a serious illness such cancer, heart attack or stroke, providing a lump-sum to help cover the costs of bills while the policyholder is unable to work. This can be taken out as a standalone policy, or can be included with life assurance cover, with all the options included as mentioned above.
This is designed to provide the policyholder with a monthly benefit based on their income or salary if they are unable to work due to accident or illness.
Unlike term assurance, which has a finite term, whole-of-life policies are guaranteed to pay out on the death of a policyholder. They are often used to cover the costs of Inheritance Tax or funeral costs.
Private Medical Insurance
This is designed to meet some or all of the costs of private medical treatment. Policies cover the cost of private treatment of an acute illness or injury on a short-term basis.
Group Life Cover
This provides benefits on a scheme member’s death. This is in the form of a lump sum, usually based on their salary.
Group Income Protection
This provides a continuing income to scheme members who are unable to work as a result of an accident or illness.
Group Critical Illness Cover
This provides benefits to members who are diagnosed as suffering one of a list of specified medical conditions, usually in the form of a lump sum.
Group Private Medical Insurance
This is designed to meet some or all of the costs of private medical treatment for scheme members.
Health Cash Plans
This provides employees and their families with health expenses for routine procedures such as dental treatments and optical tests.
If you’re unsure what cover you or business would benefit from, our specialist teams can help. They provide a wide range of clients with financial advice on investments, pensions and other key financial areas.