NestEgg Insurance Services Protection Products
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Income Protection
Level Term Assurance
Critical Illness
Family Income Benefit
Business Protection
General Insurance
Income Protection
What is it?
Income protection insurance provides you with a regular income in the event that you are unable to work due to illness or injury.
What is the difference between an income protection plan and an accident and sickness policy?
An income protection plan has no restriction on the number of claims or the length of the claim period other than to your selected retirement age (see “how long will the benefit be paid to me?”). The plan can only be cancelled if you cease paying premiums.
Do not confuse these plans. An accident & sickness policy will only pay benefits for a maximum period of 12 months or in some cases 24 months. It is normally an annually renewable contract and can be cancelled at renewal by the insurer. This means that if you are making too many claims because of poor health you run the risk of not being able to renew the policy and then being left without cover when you most need it. Worst still, you may not be able to obtain cover elsewhere.
Why do I need it?
In the event of you being unable to work, how will you generate any income? Imagine the implications if you could not provide sufficient income to pay your mortgage or rent and household bills, which includes food for yourself and your family.
The likelihood of incapacity is rising. Department for Work and Pension figures show that over the past fifteen years the number of people claiming State Benefit for ill health has doubled to over 2 million.
It is illogical that many people insure
household appliances for breakdown but not themselves!
Won’t the state provide benefits for me?
You could receive as little as £60 per week for short-term incapacity depending on whether you are employed or self-employed.
The amount of Incapacity Benefit you receive if you suffer long-term illness or disability depends on how long you are off work and whether you are employed or self-employed. It takes into account your age, and the number of dependants.
Assuming you are eligible, you could receive as little as £4,082.00 a year, after 52 weeks off sick, as a single person on Incapacity Benefit. With a spouse you will receive £6,523.40 a year. What's more, the payments for a claimant and spouse would be taxable.
Amount of benefit (from April 2006). Source: Department of Work and Pensions
How much benefit can I receive?
This varies between insurance providers but the maximum is generally 50%-65% of your taxable earnings and is paid tax-free based on current tax rules (2007).
What illnesses and injuries are covered?
Although there are standard exclusions on most insurers contracts such as self-inflicted harm, drug and alcohol abuse etc. cover is provided against all illnesses and injuries unless specifically advised to you before the plan commences.
How will the insurer decide on policy exclusions?
The insurance application form asks a number of questions about your medical history and the insurer may also request and pay your GP for a medical history report. If there are any existing or previous medical conditions, which are considered to increase the risk of claims, the insurer will advise if any exclusions are to be applied to the cover.
It is therefore important that all relevant information is disclosed in order to avoid future claims being declined.
When will my benefit start?
You decide on how long you could manage financially, if you are unfit to work, before the benefit starts and this will depend on your own financial circumstances. You may need the benefit to start immediately or you might perhaps be able to manage for a period of 1 or 2 months (this is known as the deferred period). The longer the deferred period, the lower the cost of cover will be to you.
How long will the benefit be paid to me?
This may vary with some insurance contracts but generally the benefit will continue to be paid to you until you are fit enough to return to work but no longer than your selected retirement age, which can be any age between 50 and 65 years old.
How much will the cover cost me?
The cost very much depends on the nature of your job, your age and medical history together with the level of benefit and length of deferred period chosen. See the cost indicator for a guide to the cost of cover.
MANUAL WORKERS AND BUILDING TRADESMEN
Most insurance providers are either very expensive or restrict the terms of cover for manual workers and tradesmen. However, Chase Templeton Ltd has access to specialist plans for this sector of the workplace and can advise you on the most appropriate policy for you.
SPORTS INJURIES
Most policies will provide cover for injuries sustained whilst playing non-hazardous sports, which includes football and rugby as long as these are not played in a professional or semi-professional capacity. An income protection plan will normally provide far more attractive benefits than the usual accident and sickness plan offered by most sports clubs for their team members.
Level Term Assurance
This type of life cover will last for a specific period and provide a 'level' (or increasing) benefit.
This could be used to provide a lump sum for your family after your death, or to cover an interest only mortgage.
Policies can be single or joint policies; in the case of joint policies the policy will pay out at the death of either policyholder, but it does not pay out twice if both policyholders die.
Critical Illness
If your doctor diagnosed you today with cancer, a heart problem or suffering from a serious illness, would it turn you from being independent to becoming reliant on others?
The one-off lump sum payment you receive from critical illness cover is designed to help support you adapt to major life-changing illnesses. If you have a stroke, you may need to adapt your car or buy a bigger car to make it easier to get around. After recovering enough from illness you may be unable to get the same job you previously had so you may need funds to retrain for a different occupation.
At NestEgg Insurance Services we would recommend you include critical illness cover with term life insurance in your mortgage protection policy so, should the worse happen you'd have cover.
Critical Illness Cover protects you financially by paying a lump sum if you're diagnosed with any of the specified illnesses; Cancer, heart attacks, strokes, permanent and or total disability, paralysis, major organ transplants and coronary artery bypass surgery are included plus other specified major illnesses.
Over the last few years critical illness insurance in the UK has become more popular, mainly due to the large increase in coronary problems.
Over the last decade workers in the UK have begun to work longer and harder than most European countries resulting in more stressful lifestyle than that on the continent.
As a result of this increase, a large percentage of men in the UK will suffer from a heart problem rather than die. The second most common illness is cancer which is also increasing in the United Kingdom.
Many suffering from a critical illness will therefore survive but will be unable to work for some considerable time. If the loss of income is also a concern to you then consider Income Protection.
Family income Benefit
Family Income Benefit is designed to provide a monthly income to a family after the death of its principle provider or their partner.
The payments will continue at the value specified in the policy until the policy expires. These payments can be index linked to rise in line with inflation or continue at a flat rate.
Policies can be single or joint policies; in the case of joint policies the policy will pay out at the death of either policyholder, but it does not pay out twice if both policyholders die.
Please note that an income is only paid to the dependents up to the expiry date of the policy. At the end of the specified period all payments will cease and the policy never has a surrender value.
Business Protection
At NestEgg Insurance Services we provide a full range of financial protection insurance services to businesses which cover everyone from directors to partners to employees, and include all aspects of corporate financial advice, insurance and employee benefits.
See this video for more information
We help many clients design financial protection programmes such as:
- share & partnership protection
- keyman insurance
- income protection insurance
- life insurance
- medical insurance
- employee assistance
- occupational health plans.
..and many other financial and health related protection plans.
Our specialist financial insurance advice and ongoing services ensure that you use all of the available allowances and plan your financial independence in the most tax-efficient way.
The Benefits
independent financial advice for your business and your employees
impartial financial protection recommendations so we never favour one product or insurer
specialist insurance companies which have financial protection products specifically tailored to the needs of your business
swift quote/requote service which takes the hassle out of researching financial protection plans.
If you would like to find out more please get in touch.
General Insurance
NestEgg have teamed up with Berkeley Alexander to be able to offer General Insurance Products.
Set up in 1980, Berkeley Alexander are a leading wholesale General Insurance intermediary, allowing firms such as Independent Financial Advisers, Mortgage Brokers, and other Independent Intermediaries to sell General Insurance products to their clients without the need for an agency with the insurer direct. In March 2008, Berkeley Alexander was acquired by Cullum Capital Ventures Ltd and provides us (and you) with access to new markets, products and financial strength that comes from being part of one of the UK’s fastest growing and dynamic insurance organisations.