Myth Busters: Still Unsure about Personal Protection?
Have we covered them all?
It is a waste of money.
I am young and healthy, nothing will happen to me.
We really hope that you will never need to claim on your insurance!
However, we are not invulnerable. If we take time and think about our family and friends, we will inevitably find those who were unexpectedly affected by illness or injury or had a loss in the family.
I have full sick pay, private medical insurance and/or death in service benefit through my employer, which is enough to provide for my family in case I die or get ill.
It is great to see that an increasing number of employers offer protection to their employees. Make sure you fully understand the benefits. We speak to a lot of clients who don’t fully understand the limitations of the cover they have or still have protection gaps after employment benefits are taken into account.
Will you/your family be able to sustain your lifestyle after sick pay is finished?
It is important to be mindful that employment benefits change as you change jobs. Please get in touch to reassess your protection needs after a job change.
I can save money myself and use these savings should something happen to me. My family/friends will help and support me.
As of 2023, an average Income Protection claim was between 5-6 years. (Sources: Aviva, 2023 Individual Protection Claim Report, LV Claims Report 2022).
How much will you need to save to sustain your way of living (plus additional expenses associated with recovery) for 5-6 years?
I am too old to be insured or have pre-existing conditions.
It is better to have some cover in place rather than no cover at all.
Life cover can start as late as 77, while for other types of cover 60 or 65 tends to be the upper limit.
The personal financial protection market in the UK is highly developed and allows to accomodate for many complex needs. Get in touch to discuss your personal situation and you may be surprised as to what is possible.
The insurer will find a way not to pay out.
Premiums will rise every year and will definitely increase if I make a claim.
Personal protection insurances have c. 95% payout track record. (See: Aviva, 2023 Individual Protection Claim Report, LV Claims Report 2022)
Premiums are guaranteed from the outset (i.e. WILL NOT change over time or with the N of claims) unless you chose them to be reviewable or indexed.
Please arrange a call and we will help you to understand all the options available.
It is going to be too expensive!
I can’t afford it.
Expensive relative to what?
We believe that you should only consider financial protection when you identified the NEED and fully understand how an insurance can meet that need.
We will help you identify protection gaps, we will never hard sell and will ensure it is affordable now and in the future.