‘I have been delighted with the quality of advice and the level of service I have received. As a result, I am confident that my financial affairs are being much better handled than I could ever do myself. At a time of very low interest rates and global uncertainty, the advice I have received has sustained and grown my portfolio in a very satisfactory way.’
Life is full of uncertainties, however despite this, taking out an adequate insurance policy to protect you in these uncertain times can often be overlooked.
By taking out the right insurance policies, you can ensure that all your affairs are taken care of in the event of death, critical illness, long term sickness or injury. Protection insurance ensures that for as long as you continue to pay your premiums, the provider will pay a sum of money to you, or your named beneficiaries or your estate, should the worst happen.
The amount that you pay for your protection policy depends on various factors, including how old you are when you take out the policy, the length of cover, the state of your health, whether you are a non-smoker and the level of cover you require.
There are many different types of personal protection including:
Life insurance is a type of insurance designed to pay out when you pass away, and there are three main types. Level Term insurance is a policy in which you choose the amount you want to be insured for and the period for which you want cover. If you should die within that term, the policy will pay out a lump sum to your beneficiaries or estate. Whole of life cover guarantees that your beneficiaries or estate will receive payment irrespective of when you die. Mortgage protection cover ensures a lump sum is paid out to pay off your mortgage should you die within the term of the mortgage.
Critical illness cover is offered as a stand-alone policy but can also be incorporated into a whole life or fixed term policy. It will provide a lump sum payment in the event of the insured being diagnosed with a serious illness. Critical illness protection can be a fixed policy, where the premium paid is the same every month or a reviewable policy, where the premiums are reviewed after a specific period of time.
LONG TERM CARE:
Long term care protection provides financial support if care is needed. There are many types of long-term care plans such as immediate needs annuities, which pay a guaranteed income for life, pre-funded care plans, which gives the insured an option of investing in future care and enhanced annuities which use the insured’s pensions to buy an enhanced annuity.
Income protection policies are designed to replace lost income for an individual who, due to illness or accident, is unable to work. There are both short-term and long-term income protection insurance products, and payments are usually made until the insured can start working again.
At KLO Financial Services our financial planners have developed professional relationships with various insurance providers. Regardless of what plan you are interested in, our financial advisers are available to explain the benefits and downfalls across various policies and assist you in getting the most out of your life insurance.
Why is Protection Insurance so important?
We understand that thinking about death, illness or long-term care can be difficult, however, it is necessary to ensure that you have the peace of mind that you are protecting your family and loved ones. It is particularly important if you have financial dependents, as the insurance pay-out can replace your income if you are ill or when you die, allowing you to continue to support them long after your death.
Taking out a personal protection policy also means that should you not have any assets or assets of little value, your loved ones can still receive a cash lump sum.
Furthermore, a protection policy can ensure that any debts you may be leaving behind are completely paid off, meaning your loved ones are not left with any surprises or unaffordable expenses.
Why do I need a Financial Planner to find Protection Insurance?
Our experienced financial planners work with protection providers across the board in order to ensure our clients get the best coverage possible. There are many products out there and not all of them will be suitable for your situation. Our advisers are here to ensure that you don’t buy a policy that isn’t right for you.
Our advisers can assist you with:
- Understanding the differences between policies
- Getting you the right amount of cover to suit your circumstances
- Finding the right insurance policy for you
- Knowing when an insurance provider will not pay out and therefore ensuring that you have the right type of cover to prevent this from happening
We are always eager and available to meet with you to discuss your financial objectives and assess your current strategies. No question is too big or too small. The first consultation is always free and comes with no obligation. If you’d like to speak to one of our expert financial advisers, get in touch today.
Our advisers understand that every family’s situation is unique, and so you will require a solution that is tailored to meet your own personal needs. We know that major events such as marriage, childbirth and property purchase can require additions or changes to your protection plans. We take the time to listen to you, so that we can offer advice and help you find the best insurance policy for your changing needs.
We offer personal protection advice that helps to protect you and your family. At KLO Financial Services, we consider your financial obligations when selecting the best options for you.
In addition, we can safeguard your mortgages and other debts. We understand that coping with an untimely death or critical illness is difficult for any family. Through thoughtful evaluation, we can help you avoid burdening family members with the additional stress of struggling to pay outstanding debts.
We present the best policy options and listen carefully to your feedback. We appreciate and respect the gravity of choosing insurance to protect your loved-ones and we want to make sure you are comfortable with your plan. Our advisers are always available to discuss your needs and goals. Your first consultation is at no cost to yourself and comes with no obligation.
Increased Financial Protection
First and foremost, one of the primary advantages to insurance is the increased financial protection you and your loved ones receive. Passing away or being unable to work with no insurance can create all sorts of financial and emotional problems for those in your family. Therefore, having the correct policy in place means that your beneficiaries will be financially secure, even without the support of your regular income.
One of the main benefits of having insurance solutions in place is being able to live without financial worry. You know that if anything were to happen to you, your family and other loved ones will be provided for. Knowing that those around you will not have to worry about any financial burdens while dealing with the emotional distress of you passing away gives you the peace of mind that they will continue to be taken care of long after you’ve died.
Depending on the policy you have taken out, many insurance products, such as income protection, benefits are generally tax-free.
With so many insurance providers available, protection policies are very flexible. You decide what policy is right for you, the coverage, duration and who your beneficiaries are. Should you pass away, your loved ones can decide how the money will be spent.
Protection policies are now extremely affordable, in part due to people living longer than ever before. With more insurance providers in the market, prices stay competitive, putting the power in your hands. As well as this, your own decisions affect the price, so it’s possible to reduce your quoted premiums if needed.
In fact, depending on the type of policy you choose, there are various things you can do to continue to adjust the prices you pay for your insurance. If your income decreases, you might be able to decrease how much you pay for your policy with the option to increase it in the future.
The cost of insurance varies from person to person, so what you pay depends on a variety of factors. However, there are certain things you can do to ensure you get cost effective cover:
- Don’t buy the first policy offered: This is where KLO Financial Services can help. Our financial planners will offer protection advice and help you find the right provider. You won’t have to worry about not getting the best coverage because we will do this for you.
- Think about what coverage you need: When you first start thinking about insurance, you might want cover for everything and anything, however, think about what you will actually need. You need to ask yourself questions such as how many people are dependent on you and how will this change over time?
- Quit smoking: Although it isn’t our place to offer health and lifestyle advice, it is proven that being a smoker can increase your premiums, so you might want to think about quitting, for more reasons than one.
- Joint policies: If you have a partner or spouse, it might be worth thinking about including them on your policy. This is usually cheaper as joint policies are eligible for discounts.
- Invest early: Age is a massively important factor in life insurance prices, and so the longer you put off buying the insurance, the more you will pay.
This is dependent on your specific insurance plan and what its exact terms and conditions are. It’s therefore important that you use an independent financial adviser who can ensure that all your needs are accounted for, giving you peace of mind that there will be no nasty surprises for those you leave behind.
This depends on your own personal situation. Some individuals will want a policy that covers them until their children have reached the age of 18, whereas others will want a policy that lasts their entire life. KLO Financial Services will offer you insurance advice depending on your unique needs, helping you to the right insurance solutions to cover you for as long as you need.
Most insurance providers offer what they call ‘guaranteed’ premiums. This means that the amount you must pay is fixed throughout the entire plan, and you don’t need to worry about a change in costs, unless your situation changes. However, some policies will not have ‘guaranteed’ premiums, and have ‘reviewable’ ones, which may increase with time. Therefore, it is important to have a full understanding of the insurance policy you are interested in taking out. Our advisers at KLO Financial Services make sure you know exactly what policy you are signing up to.
It may be difficult for individuals who have already been diagnosed with a serious medical condition to find insurance. There are, however, some companies that will still allow you to take out a policy at a higher cost. These insurance policies may exclude cover for the illness you have been diagnosed with prior to the start of the policy, and it’s important that you know this. Our expert financial planning team will be able to find you a policy, even if you have been diagnosed in the past and will make sure that you are covered for everything you need.
Age affects pricing because generally your life expectancy is shorter as you get older. However, age isn’t the only aspect that insurance providers consider, as they also look at your general health and lifestyle. KLO Financial Services have relationships with multiple insurance providers who will cover individuals over the age of 50, so we can find you cover, regardless of age.
Yes. There are many couples who now take out joint life insurance policies that offer shared protection. These policies are usually more cost effective too. However, it’s vital to remember that they normally work on a first death basis – the policy will only pay out on the first event so the surviving partner may have to set up a new policy if they want to remain covered.