Personal Insurance

Not all insurers are the same & we at b-advised ltd can source the market to find you the best value deals and that’s not the end of the service, have a claim we will of course be there to help. Lots of comparison web sites are focused on the price and neglect the advice you may need to find the best value plan.

In the event of a claim (that is the true test of the value) are you prepared to be disappointed?

Household insurances

Although exact coverage and policy limits vary, Home insurance usually covers damage done by the following events/catastrophes:

Fire
Lightning
Explosion
Smoke
Vandalism
Accidental Damage
Theft, including check forgery and counterfeit currency
Unauthorized use of credit cards
Falling objects
Storm damage
Riot
Freezing of plumbing
Escape of water due to plumbing burst ect.
Hot water heater bursting
Legal services
Emergency cover
And more coverage may also include food spoilage; lock replacement, temporary repairs, removing debris. If these items are not initially included in your basic coverage, it is possible to have them added.

Accident Sickness & Unemployment

With accident, sickness & unemployment policies, you pay for an amount of monthly cover - usually between £0 and £1,500 - and if you lose your job or can't work due to an accident or an illness, you get that amount of money each month to spend how you like. Policies usually pay out for up to a year or until you return to work, whichever happens first.

Pros

Worth taking out if you've taken out your mortgage or re-mortgage after October 1995, as you are un-likely to get any help from the state with your mortgage payments if you get into trouble.
A good idea if you think making your mortgage payments would be difficult if you were made redundant or too ill to work and you don't have any other savings or protection to cover household bills.
May be useful to think about if you don't have a job which has sick pay or your self-employed

Cons

It covers only a specific debt - your mortgage, so you won't have extra money to provide for other things like food, clothing etc.
Can be expensive
These types of cover pays for a limited time period, typically 1 to 2 years or until you return to work.

Who is eligible for cover?

Anyone can apply for an accident sickness & unemployment policy so long as you are over 18 and under 60 and you normally reside in the UK, Channel Islands or the Isle of Man. You must also be in employment or self-employment for at least 16 hours per week and have been so for the last 6 months.

You can start claiming your income protection typically after just 60 days of being off work through illness or an accident as certified by your doctor. You can select to cover typically any amount up to £1,500. You can claim your daily income protection from just 60 days after you cannot work through sickness or an accident (or unemployment, if chosen) and continue to claim for up to a full year. As with other forms of personal protection insurances (e.g. life insurance, health insurance) premiums will gradually increase as you get older in line with the rates quoted.

PHI

Income Protection Explained

Income protection insurance or permanent health insurance aims to give you an income if you can't work in the event of sickness or illness. (Not Unemployment)

The amount of cover can be anything up to three-quarters of your normal wage, less any state benefits you receive.

For the self-employed, insurers usually base the level of cover on your taxable income at the point of a claim.

All pay-outs for income protection insurance are tax free and usually continue until you recover or you reach your selected pension age/term of the policy.

Income protection insurance will not cover redundancy, for details on redundancy insurance please read our accident sickness and unemployment cover section.

Pros

Will be beneficial if you or your family relies on your wage to pay most of the bills and if you want the security of continuing pay outs.
May be useful if you are self-employed or don’t have a job with sick pay.
It's up to you how you spend the money each month.

Cons

This is one of the more expensive forms of this type of insurance if you have a short deferment period.
This cover does not typically include redundancy cover, and a separate policy would be required for this cover.

Income Protection Insurance Explained

Income protection insurance, also known as permanent health insurance or income replacement, provides a tax free income if the policy holder becomes unable to work through illness. An income is paid until retirement age, the end of the policy term or until the policy holder is able to return to work.

Permanent health insurance does not normally cover unemployment/redundancy.

There is a period following the accident or illness which must elapse before the policy begins to pay. This can range from a month up to two years and is known as the deferment period.

Most income protection policies will give a stream of monthly tax-free payments equivalent to between 50% and 65% of gross salary, although some companies will offer up to 75%.

Premiums are dependent on the monthly income required, age, current state of health smoker status and occupation. The deferment period also affects the premium, with a shorter period resulting in higher premiums being required.

You should check your employer benefits package before applying for an Income Protection plan as you may find they offer some cover. If you are unsure please speak to b-advised ltd

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