Critical Illness Cover for your kids: what you need to know

When it comes to our children, there’s nothing we wouldn’t do to protect them – right? Well, there are some things that so many parents fail to consider. No one wants to imagine their child falling ill – but it does happen to some and is a situation that is important to be prepared for.

Critical Illness Cover is an integral part of any protection policy if you have children – and it will help with some of the impacts you may not have even considered.

Children’s critical illness cover plays an important role in the protection space. Of course, you’d do anything to protect your children from harm – but what happens if they do fall critically ill? Aside from the obvious emotional distress such an ordeal can cause – a child falling ill can have a huge impact on your finances, especially if you’re forced to take time away from work to look after them. In the past, children’s cover was typically included automatically on critical illness plans regardless of whether you had children, it is now much more common for insurers to offer a more flexible range of options tailored to your needs – so it’s important to ask about it when getting covered.

The benefits of children’s cover can often be overlooked as it isn’t an income earner within the household falling ill, but the financial benefits from the cover offer a peace of mind and financial stability that is hugely valuable in the case of something as difficult as your child becoming critically ill does occur. Pay outs can be used to cover losses of income if you had to take time away from work to care for your child, as well as paying for expensive treatments or essential modifications to your home where necessary. Children’s CIC will protect your child whether they are naturally born to you, a stepchild or adopted.

 What age does CIC cover children for?

The oldest age you can hope for your child to be covered for under a child’s critical illness policy ranges from 18 to 23 depending on the provider, although the majority will at least cover until 21. Most providers offer cover that start from birth, although some won’t offer a policy until your child is 30 days old.

Of course, even just imagining your child falling critically ill is an incredibly difficult thing to do – which only highlights just how important it is to get them covered. The emotional stress of dealing with a critically ill child is more than enough for anyone to deal with – and CIC offers peace of mind that your financial situation will be secure if such a tragedy were to happen to you.

 If you already have cover in place but it doesn’t cover your children, get in touch with your adviser to talk through your options. You can add your children to your policy at any time, so make sure to speak with your adviser and ensure your whole family is protected.

 If you would like to discuss the protection options available to you, please get in touch with Bill Somers Mortgage and Insurance Services today.

Life Insurance: Do I Really Need It?

Life insurance pays out either a cash sum or regular payments on your death, this can help your loved ones deal with any financial impact that may follow when you are gone. You may consider getting life insurance if you have people that rely on you and your income. 

Why do People Buy Life Insurance?

Buying property or starting a family is when most people begin to look into life insurance, when someone is dependent on you and your income. A life insurance plan will help give you some peace of mind and help your loved ones with any future costs that may occur should you die.

Here are a few reasons that many people choose to buy life insurance:

• Buying Property: As discussed above, buying property is one of the main reasons people take out life insurance.

• Marriage: Life insurance helps you to contribute financially to your loved ones’ life after you have gone.

• Having a baby: Many parents take out a term life insurance just in case something should happen before your child is financially independent of you, this will help with any financial implications left when you die and could help with university fees etc.

• Inheritance Tax: Buying a life insurance policy to cover the tax bill so that your children can enjoy all that you intended to give them. This is normally best discussed with a tax specialist.

So, what life insurance do I need?

There are a few different types of life insurance to consider. At Bill Somers we will use our extensive knowledge of life insurance policies to find the right cover to suit you and your lifestyle and help with all the paperwork that comes along with it, to help make your life that little bit easier. We will also look at your suitability for other protection products for example critical illness insurance and income protection.

Do You Need Life Insurance if you have a mortgage?

If you are single and don’t have anyone who depends on you financially you may not need life insurance; if you have a mortgage the lender would simply reclaim the property on your death and sell it to settle the remaining debt. However, if you plan to leave any mortgaged property to someone or a charity you would then need life insurance so that the mortgage could be settled prior to them receiving the property.

On the other hand, if you own a property that’s mortgaged that both you and your partner are named on, on your death the responsibility to repay the debt will continue with your surviving partner. They will be expected to pay the debt in its entirety even if your income currently comprises much of your household income. 

Although discussing your passing is not a fun topic it is necessary to plan with your partner or loved ones what will happen with any assets or finances after you are gone, this is where we can help you get everything in order.

How To Get The Best Life Insurance?

Talk to our team at Bill Somers and with our extensive knowledge of life insurance, can ensure that your cover is right for your needs. We can take the stress out of comparing policies and companies by taking care of the paperwork and being the point of contact with the insurance company you choose. 

Get in touch today to discuss your life insurance options.

Income Protection Insurance: Why you should always be covered amid a cost-of-living crisis

Protection insurance is severely undervalued by thousands of people across the UK. Often seen as an unnecessary expense; there are a vast number of people living in this country who are yet to take out a protection plan and therefore remain unprepared should they lose their income or worse – their life. 

With a cost-of-living crisis currently causing panic for many, it’s so important to stay covered even when you’re looking to cut costs elsewhere. Despite common misconceptions surrounding how often providers pay out and steep monthly premiums, uncertain times make protecting your family should anything happen to you even more vital. Get in touch with the team at Bill Somers today to help you find the correct protection insurance for your needs.

What are the different types of protection cover?

There are several different types of protection insurance, from payment protection insurance to permanent health insurance. At Bill Somers we will use our extensive knowledge of insurance providers to find the right cover for you, looking into Life Insurance, Critical Illness Cover and Income Protection Insurance. 

The necessity of protecting your income has never been more apparent. The pandemic offered millions of people a scary insight into just how quickly circumstances can change for anyone by forcing a huge proportion of the population out of work. Now, imagine how dire that would have been without the safety net that the furlough scheme provided for so many households nationwide. Income protection insurance provides a tax-free income allowing you to pay your bills, mortgage, rent and childcare should you become sick or have an accident and are unable to work.

Critical Illness Insurance Cover - is a type of protection insurance that is designed to provide you and your family with financial stability should one of you fall seriously ill. Illness can stop you from working at any time and without warning and being in the midst of a cost-of-living crisis, protecting yourself against such an outcome with protection insurance has never been more valuable.

Do You Need Protection Insurance?

There are many reasons you may need protection insurance. If you are are self-employed or a small business owner, you may not have sick or annual leave pay. If you have family members that solely rely on your income alone or if you have debt, such as a mortgage that you will have to pay even if you are unable to work. Your work contract may not specify what happens if you become critically ill and so may not offer protection if this happens. If you need help deciding if you need protection insurance and what policy would suit your needs, contact us today.

Do insurance providers actually pay out?

So, do providers pay out – or is it all too good to be true? Well, contrary to what some sceptics might say, 98.3% of all claims made in 2019 on protection policies were accepted. This figure is enough on its own to display just how common a successful claim is – and how unlikely it is that a claim is rejected. There are of course a few occasions when providers don’t pay out – most commonly due to underlying issues not being disclosed when the policy is initially taken out. At Bill Somers, we will ensure you are with the right insurance company to cover your needs.

Is Everyone Eligible for Protection Insurance?

Another common misconception surrounding the protection industry is that more complicated cases get turned down. There are plenty of insurance providers that specialise in the more complex of cases – and the figures suggest that the vast majority of those cases pay out too. The Exeter reported that 93% of claims were paid in 2021 with a total pay-out of over £10 million. Out of the 1,318 claims made throughout 2021, only 92 were turned down (that’s just 6%). You will need to be employed at least 20 hours per week and have been in your current job for at least 12 months to qualify, in most cases.

It’s so important for everyone to protect their income, and if the past couple of years has taught us anything, it is that no one can predict what the future holds. Being protected against any eventuality is a safety net that could prove to be invaluable to any of us. Get in touch today to discuss which protection insurance is best suited to you and your family.