Understanding the value of protection insurance

The payout from either an income protection policy, which could provide a weekly or monthly income, or a lump sum from a critical illness policy will mean that bills can still be paid. A person’s lifestyle does not have to be compromised and rather than worrying about financial matters they can concentrate on getting better.

It is easy for us to say “if only they had taken out protection insurance”. But a lack of awareness about the products available, thinking it will be too expensive or a belief that the state will provide puts so many people off. And of course there is the mentality that “it will never happen to me so I won’t bother”. Let us hope that as more charities highlight the financial impact of a critical illness, 2013 will be the year when more people will understand the true value of having a financial safety net.

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Roger Edwards is managing director of Bright Grey & Scottish Provident

As we enter 2013 we will be doing so with the first major price increases the protection industry has seen for a very long time.

Any serious illness can have a sudden and unexpected effect on the family finances.

Over the next few years disability living allowance will be phased out and replaced with the personal independence payment.