Life can take unexpected turns, and insurance products can give you peace of mind that your family will be financially protected when you die or have a serious illness. There are lots of different types of cover available, so it isn’t always easy to choose the most suitable product.
This article explains the different types of cover available to help you review your options and choose the cover that best suits your family’s needs.
What is family protection insurance?
Family protection insurance includes a range of insurance cover options to provide financial support to your family if you die or are diagnosed with a critical illness. Typically, people take out family protection insurance to ensure that costs such as the mortgage on the family home are covered; however, it can also be used to cover other expenses, such as childcare or education.
Key types of cover available
These are some of the types of cover available for family protection insurance:
- Critical illness – This type of cover provides payouts if you are diagnosed with a serious illness such as cancer or MS, or if you have a heart attack, stroke or major surgery. Payouts usually cover lost income, mortgage payments, bills and can include private medical treatment.
- Life assurance – Life assurance cover provides a payout to a beneficiary upon your death. This is a guaranteed lump sum to cover funeral costs and other financial commitments as required. Your monthly payments will reflect the lump sum you want your family to receive.
- Family income benefit– This insurance provides a monthly or annual income to your family if you die within the policy term.
- Income protection– Income protection pays you a monthly amount if you are unable to work due to medical reasons, such as an injury or illness.
