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.