Personal protection is a group of insurances that pay out in different circumstances. This money is usually paid out to pay off the outstanding balance of your mortgage or cover your monthly expenditure, in the circumstance that you are unable to work due to illness or injury. A good mortgage adviser will advise on any relevant protection products according to your protection needs. Some examples of personal protection products are:
- Life Insurance – A lump sum of money that pays out upon the death of the policyholder.
- Critical Illness Cover – A lump sum of money that pays out in the event that the policyholder is diagnosed with a critical illness.
- Income Protection – This product pays a monthly sum of money in the event that you are unable to work due to illness or injury.
Protection premiums (the monthly amount charged to hold the policy), can vary in price, depending on different factors. Some of these factors include your age, BMI, smoker status etc. It is almost always cheaper to get protection the younger you are.
Protection is important as you have to ask yourself ‘How would I pay the mortgage/bills in the event I was unable to work due to illness or injury?’. If you have no mode of paying the bills in this event, then you need protection.
At Linear Financial Solutions, we have a dedicated community of mortgage and protection advisers who will be able to cater to all your protection requirements accordingly and recommend the appropriate protection for your financial commitments.
27/03/2024 – the information contained within was correct at the time of publication but is subject to change.