Serious Illness is a benefit that if you choose to take it out, it pays you a lump sum if you are diagnosed with one of the 45 illnesses covered.You and your family can use this lump sum to pay living expenses, your mortgage, short term debts and medical expenses.
- Men have a 1 in 4 chance of suffering from a serious illness before 65
- Women have a 1 in 3 chance of suffering from cancer before 65
- Most common illness are cancer, heart disease and stroke.
Morbid reading i know but unfortunately these are the facts:
This also pays out a sum if you are diagnosed with an illness or injury.
This policy will pay 75% of your wages until aged 60 if you can’t go back to work due to an illness or injury. Unlike serious illness it’s paid as a monthly benefit not a lump sum.
Both Self-employed people and Paye can claim tax relief on income protection policies.
Companies can also set these up as a company income protection policy for the main directors/owners and these are even cheaper than normal plans.
The earlier you take out these policies the cheaper they are so get your cover sorted as soon as you can.