What is personal protection and why do we need it?

Arranging personal protection is something we generally put off until it’s too late. Most people do not understand the value of having it until a life event, such as a health scare or death in the family, brings things into sharp perspective.

So, what is personal protection and why would you need it?

Personal Protection refers to Life Insurance, Critical Illness and Income Protection plans.

Life Insurance is a policy that pays you an agreed sum of money should you pass away during the term. This can be used to protect your mortgage by ensuring a partner or loved one has the funds to pay down the outstanding balance and inherit the home debt-free. Alternatively, it can be used to pay down any other debts left behind, cover funeral costs and ensure your loved ones are looked after in your absence.

Critical Illness works in a similar way whereby the plan will pay you an agreed sum of money should you be diagnosed with a critical illness during the term. This can be used to clear some or all of your mortgage or to support yourself throughout your recovery. In the event of a critical illness, income tends to drop whilst outgoings increase, so Critical Illness Cover can help ease the financial burden.

Income Protection is a policy that pays you a monthly benefit should you be unable to work due to an accident, sickness or injury. This helps you to maintain your bills and outgoings whilst taking the recovery time that you need.

These are all insurance plans that help to protect you and your family against the financial impact of death, critical illness or being unable to work.

We all have some form of financial commitment, whether that’s a mortgage payment, car finance, general bills or providing for dependants. Life is unpredictable and at times unfair, and should the unexpected happen these commitments would still need to be maintained.

This is where personal protection comes in to help mitigate that risk for you and your loved ones. It helps relieve the financial burden of these situations, ensuring you can focus on the emotional and/or health impact in the worst-case scenarios.

You would protect your car, pet, or mobile phone – so don’t forget to protect yourself!