How much of the small print do you read?

When you’re getting your car insurance or home insurance policy, you know what you’re looking for, right? Do you know what you’re looking for in your life insurance, income benefit or other protection policies?  

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We have clients who feel their employer’s benefits are more than enough, most times it really is. But they’re not guaranteed, an employer could, with notice, withdraw such benefits as they’re deemed “nice to haves”.  Where would that leave you?

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We always say the devil is in the detail.  How well do you know your cover?  Zara reviewed an income protection policy for a client, it had been in place for years.  As part of our standard process, our advisors will ask to see what you have in case there’s anything better for you.  The income protection policy had a 12 month deferred period meaning the client would not be able to claim on their policy until 12 months after their sickness period.  The client had 3 months sick pay from their employer but when that ended they would move on to Statutory Sick Pay (SSP), from then it would be a further nine months until they could claim on their policy.  The client had no idea that was the case.  Needless to say the policy was replaced with something more suitable.  

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Cameron and Mabel have shared their own protection portfolio before (What Does a Protection Portfolio Look Like?)   Their circumstances haven’t changed much since setting up these policies but it’s still reviewed every other year, just in case.  This gives you an idea of what policies are available. Everyone has unique circumstances and your protection portfolio should reflect this.

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If you have yours in place but haven’t reviewed in a while, or you’re not sure what it covers here are a few tips from our Protection Advisor, Fiona;

1. If you change job then notify your insurer, especially if you have income protection.  Some job roles may affect future claims so it’s best to be upfront.  
2. Thinking of starting a family in the future?  Then check if your existing life insurance cover has children’s cover included.  You’d be surprised at how many insurance providers have children’s cover included as an additional benefit, meaning it could be at no extra cost to you.  
3. You’ve got a joint policy with your partner but you’re separating. Go to the insurer and ask if they will simply split the existing policy into two singles or is new cover required?  Do not just cancel if you can get the former option. 
4. Feeling the pinch?  One of the first “luxuries” to go can be your life insurance.  Before you do that, ask your insurance provider to allow you to reduce the sum assured or the term to be reduced in order to lower the monthly premium?  This way you still have some cover as opposed to none. 
5. If you’re not sure of what you have and you feel like you don’t know where to start, then speak to your Protection Advisor.  They will not mind in the slightest to answer your queries or review what you have.  

Now more than ever, we want our clients to know that they have the right protection policies in place for them.  We’re all feeling the squeeze of rising inflation, fuel costs, and everyday living costs.  Chatting to us is free, we may charge a fee of up to £495, but if you want advice to just find out your options then we’re available to chat.  You can book appointments with us via our website.

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