Protecting yourself against illness

Traditional life insurance pays out on death, but not if you survive or are physically or mentally impaired.

With this in mind, there are other policies that you can take out to protect yourself should you be diagnosed with a critical illness or not be able to work for a long period of time. Here we explain the options available and how Skipton Financial Services can help you:

Helping support you in time of need

Being diagnosed with a critical illness would be devastating and the worry about how you and you loved ones would cope financially can be an unnecessary burden. Taking cover to ensure that the mortgage is paid or medical bills met if you are unable to work can give you peace of mind and one way of doing this is through a Critical Illness policy.

You can take out Critical Illness cover on its own or as part of your life insurance which would pay out when you die or contract a critical illness. A financial upside to this cover is that the benefit is currently paid tax-free. Your premiums can be guaranteed, fixed or reviewable - however reviewed premiums may continue at the same level, increase or decrease.

What does a critical illness policy cover?

Typically, seven core illnesses or treatments are covered by a Critical Illness policy, such as:

• Cancer.
• Coronary artery bypass.
• Heart attack.
• Major organ transplant.
• Stroke.
• Kidney failure.
• Multiple Sclerosis.

It is important to note that some forms of cancer which, if detected early enough, will not have a severe impact on lifestyle and therefore may not be covered under all policies. However, it’s also worth knowing that many policies will also cover other illnesses such as coma, deafness and Parkinson’s disease.

The key is to read the fine print in the policy document and check what you are covered for and your SFS adviser will ensure you know all the terms and conditions before you take out a policy.

If you wish to find out more information about Permanent Health Insurance or arrange an appointment to discuss it with a SFS adviser, call us on 0800 137 832.

Protecting you if you can’t work

Not to be confused with a critical illness, long term illness is something all of us would prefer not to think about but it is a fact that many of us could be absent from work for more than six months due to a persistent illness. This is a worrying thought with bills still to pay, so what can you do? For many people, the answer is Permanent Health Insurance (PHI).

How does PHI work?

PHI will pay you a replacement income if you cannot work through illness or accident. It pays a regular income designed to protect your standard of living and the benefit usually starts after an initial waiting period of 4, 13, 26 or 52 weeks and is payable until you return to work, the policy term expires or, worst case scenario, you die - whichever happens first.

What does a PHI policy cover?

It’s no suprise that you’ll need to be more than a little bit ill before an insurance company will begin to pay benefits. Each insurance company has different definitions of what constitutes long term illness so be sure to check what your policy covers. Some insurers may insist that you are unable to do any occupation before paying out you must expect some kind of investigation if they ask for one.

Factors that will influence the size of your premiums include:

• Type of occupation.
• Waiting period.
• Payment period.
• Gender.
• Smoking.

What the state will provide if you are ill?

The state offers minimal help for long term illness with eligibility for incapacity benefit very strict. After 28 weeks of illness a claimant must undergo a test checking their ability to carry out a range of work-related activities eg walking, sitting and using stairs. Even if you qualify the benefits are not generous and are taxable.

If you wish to find out more information about Permanent Health Insurance or arrange an appointment to discuss it with a SFS adviser, call us on 0800 137 832.

 

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Alternatively call:
0800 137 832

To find out more about any of
the services we’ve mentioned
simply:

• Contact your SFS Financial Adviser
• Call a member of our Client
  Help Line on 0800 137 832
• Visit your local Skipton
  Building Society branch to
  arrange an appointment with
  an SFS Adviser

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