Independent Protection Specialists

By having cover in place, and unfortunately needing to make a claim, it may provide you with a degree of breathing space by receiving a vital financial buffer, at a particularly difficult time.

Of course, most of us may think ‘it’ll never happen to us’, but at the same time it’s possible that we’ll also know of others who have faced unexpected health issues, injury or an untimely death. So surely it’s better ‘to have something and not need it, than to need something and not have it’.

In the same way that you’ll insure your car, building and contents, pet and mobile, you need to make sure you apply the same principles.

Life Assurance

The sum assured is set at the outset of the policy and remains at that level throughout the term of the policy. The sum assured is only payable on death (sometimes on the diagnosis of a terminal illness) before the end of the term of the policy.

Decreasing Term Assurance (DTA)

The sum assured reduces each year (or more frequently) by a stated amount. The amount of life cover will reduce to nil at the end of the term. These policies are commonly used to cover repayment mortgages. Although the cover decreases each year the premiums will remain constant.

Critical Illness Cover (CIC)

Critical Illness insurance pays out a tax-free lump sum upon diagnosis of one of a number of illnesses e.g. certain heart conditions, cancers, loss of limbs. It is important to check the Key Features of your selected insurer for the definitions of these and other conditions that may be covered.
Critical illness insurance can be arranged on a stand alone basis or combined with a life insurance policy.

Income Protection Permanent/Health Insurance (PHI)

This policy pays an income when accident or illness prevents someone earning a living by carrying out their normal occupation. The term of the PHI policy cannot normally extend beyond the person’s intended retirement age. Benefits commence after a set deferred period. All benefit payments are currently tax-free. The maximum levels of income benefit are typically 50%-65% of pre-disability earnings. Income will be paid until return to work, recovery, cessation of policy or death.

Family Income Benefit (FIB)

The sum assured provides an annual income payable monthly in arrears. These policies are commonly used to protect your family and provide income should you die during the term of the policy. Income is payable to the end of the plan.

Contents Insurance

Although it is not a legal requirement to insure the contents of the property it is advisable to do so. Contents insurance will typically cover your belongings against fire, theft, flooding and accidental damage.

Buildings Insurance

This insurance gives the insured financial protection for the structure of the property. The lender will confirm the sum insured and will normally make it a condition of the mortgage offer that the property is insured at all times. Many policies are index-linked, increasing the level of cover each year.Level Term Assurance (LTA)

Accident, Sickness and Unemployment (ASU)

This type of protection can provide a regular income if the insured is unable to work due to accident, illness or unemployment. Benefits are payable after a deferred period, typically one month, and will be paid for a maximum specified period of one or two years, which will be defined at the outset of the contract.

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