Bennison Brown | Types of Protection and Why They're Important

Types of Protection and Why They're Important

Knowing your protection options is essential

Having protection in place can give you peace of mind that you and your family are protected in the worst case scenario. Even with no dependents, protection will provide a safety net for any case where you become unable to work for a prolonged period of time.

Even if you don’t decide to put any insurance in place, it's important for you to have sufficient knowledge to make it an informed decision. Below are the most common and important forms of protection

MPPI (Mortgage payment protection insurance)

Mortgage payment protection insurance covers your mortgage repayments for up to two years if you are unable to work due to illness or an accident. It can be a slightly cheaper alternative to income protection depending on your situation however, it only covers your mortgage payments.

Income protection

In the case that you become unable to work due to illness or a work accident, income protection can cover you for up to 60% of your annual income. If you have been made redundant, the policies may cost more but could be worth taking out.

The amount you pay each month depends on factors that contribute to your likelihood of claiming:

  • Age
  • Height
  • Weight
  • Occupation
  • family medical history
  • Exercise habits
  • Smoking habits

The money can be used to cover your mortgage payments, household bills or any other living costs that might occur during your time off work.

Critical Illness

Critical Illness Cover will pay out a lump sum if you are diagnosed with a serious medical condition.

Each policy is different to another as it is very specific to the condition you have. Most claims are for cancers, heart attacks and strokes.

The lump sum can be used towards paying off debt, repaying your mortgage or providing the lump sum to your next of kin.

Life Insurance

Life Insurance policies pay out a lump sum if you pass away. This lump sum can help repay your mortgage, and any other financial commitments. A life insurance provider may also include additional benefits like prescription services, second medical opinions or funeral costs.

If you already have protection policies in place it’s a good idea to review them to make sure they are still the most suitable for you.

See how protection can change lives

The Seven Families charity campaign is an initiative to provide 7 families with income protection after the breadwinner became unable to work without being insured.

See the life-changing benefits protection provided for them:

Discussing your options

If you wish to review your current protection policy or put a new one in place, you can book an appointment with one of our expert protection advisers, or you can submit an enquiry below.

As with all insurance policies, Conditions and Exclusions will apply.

Getting in touch is easy

Leave your details or phone us now on 02074276067