Some people may wonder why they need protection cover? Protection cover is designed to provide cover for those unexpected events that happen in life.

Often many individuals won’t think twice about insuring their car, their house or take out travel insurance so why wouldn’t they protect their loved ones and their health?

We at Lodge Financial Advice Ltd are here to help identify your protection needs and recommend protection that will cover your needs such as:

Life cover with or without Critical Illness cover

A lump sum which would be payable on earlier critical illness diagnosis or on your death. This cover could aid in making home renovations following a diagnosis of a critical illness or to replace lost income if you are unable to work or just give you time to recover properly without financial worries. This cover could also provide protection to your dependents on your death.

Family protection

The purpose of family protection is to provide a lump sum on your death to your loved ones. We would recommend that you prioritise family protection if you have a young children who are financially dependent. The chosen sum assured would be based on your monthly outgoings and the term would be chosen to coincide with your dependents/children reaching an age of financial independence.

Mortgage Protection

A mortgage is huge financial undertaking and can soak up a considerable amount of an individual’s disposable income. Should you be diagnosed with a critical illness and are unable to work or on your death, a lump sum will be paid out to pay off your outstanding mortgage.  Statistically you are more likely to suffer a critical illness during the lifetime of your mortgage than you are to die.

Income Protection

An income protection policy is based on your pre-taxable earnings and most Insurers will pay 50-65% of your earnings if you are unable to work due to illness or disability. This can reduce the financial burdens you have should you be unable to work and can help you to keep up with financial commitments and maintain your standard of living.

Business protection e.g Keyman Insurance/Shareholder Proptection/ Relevant Life Insurance

What is the importance of business protection? The name gives us a clue! If you are business owner, this type of cover enables the business to continue following the loss of a key employee/business owner through death, critical illness or temporary disablement. It can also provide cover to repay a business loan in the event of death or critical illness of a key person. There are three types of business protection that we at Lodge Financial Advice Ltd recommend: Keyman insurance, Shareholder Protection and Relevant Life insurance.