Financial Protection

Many families would struggle to make ends meet if a family member developed a serious illness or died. This is why it’s so important to ensure you have the right level of financial protection and insurance in place. Our specialists can give you the peace of mind that you and your family are protected against the unexpected.

Ramsay & White Wealth Management - Financial Protection - two people talking
Ramsay & White Wealth Management - Financial Protection - Older Woman sitting on the sofa
Peace of mind for your finance

Why might you need protection?

The most common reasons for setting up financial protection are:

To maintain your lifestyle and make any debt repayments if you became unable to work due to an accident or illness
To provide for your family if you died or developed a serious illness
To cover a future inheritance tax bill without the need to sell the family home

Financial Protection FAQs

Frequently asked questions about Financial Protection:

Why should you take out financial protection or insurance?
open or close faq chevron

Protection is often needed to ensure your family will remain financially secure if you were suddenly unable to provide for them, for example, if you became ill or died. Protection can also be used to pay a future inheritance tax bill.

What types of financial protection are available?
open or close faq chevron

Financial protection usually comes in the form of an insurance policy. There are many different types available and the right one for you will depend on your individual circumstances:

  • Life insurance pays out a lump sum or a regular tax-free income when you die
  • Income protection (salary replacement) cover pays a tax-free monthly income if you become unable to work due to a health condition or injury
  • Critical illness or serious illness cover pays a lump sum or a regular tax free income if you are diagnosed with (and survive) a serious illness, or have to undergo certain complex surgical procedures
What is the difference between level and decreasing term life insurance?
open or close faq chevron

Level term and decreasing term life insurance policies both provide protection for a predetermined length of time and will pay out a lump sum if you die within this period. However, level term policies specify a lump sum that can stay the same throughout the life of the policy, whereas decreasing term policies offer a lump sum that automatically reduces over time.

What are family income benefit policies?
open or close faq chevron

Family income benefit policies pay money to your beneficiaries upon your death or if you are diagnosed with and survive a specified critical illness. However, unlike other life or critical illness insurance policies, they pay out a regular tax-free income until the plan’s end date, rather than a one-off lump sum. You can choose how long the policy payments will last, for example, until your youngest child turns 18.

How does income protection cover work?
open or close faq chevron

This type of insurance pays out a tax-free monthly income, based on a percentage of your earnings, if you become unable to continue your normal occupation due to a health condition or injury. After a pre-agreed waiting period, you can claim a percentage of your earnings until the cover expires, you return to work, the policy ceases or you die.

What is critical illness or serious illness cover?
open or close faq chevron

Critical illness cover or serious illness cover pays a tax-free lump sum if you are diagnosed and continue living with a defined illness, or have to undergo certain surgical procedures. The list of conditions includes heart attacks, strokes, brain tumours, a range of cancers and degenerative diseases such as Parkinson's. Critical illness does not cover mental health issues or musculoskeletal disorders but cover for these conditions are available with income protection plans.

Critical illness benefits for children are automatically included with most providers but with newer policies, there is more flexibility to remove this cover or increase the scope of it, depending on your personal circumstances and the insurer.

Have more questions?
Schedule a call with our Team

a large building facade

Speak to an adviser

Complete the form below and a member of our team will be in touch.

By clicking Submit you're confirming that you agree with our Privacy Policy.
Form sent successfully.
Our team member will be in contact with you shortly.
Something went wrong while submitting the form. Please try again.
News & Updates

Latest on Wealth Management

Explore our latest Wealth Management insights, case studies and news.

Property vs Pension: Key Considerations for New Investors

Property vs Pension: Key Considerations for New Investors

Is investing in property as safe as houses? We compare owning property and pensions for retirement.
Mastering Wealth Growth in 2024: Essential Investment Principles for UK Investors

Mastering Wealth Growth in 2024: Essential Investment Principles for UK Investors

In this blog, we'll explore key investment principles to ensure you're equipped to navigate the dynamic market and foster wealth growth in 2024.
Understanding ISAs: A Guide to Investing in ISAs in the UK

Understanding ISAs: A Guide to Investing in ISAs in the UK

ISAs are a powerful tool for tax-efficient savings and investments. Here's how to get the most out of an ISA to build your wealth.