Affordable life cover, private healthcare and personal insurance

Personal Protection is there to ensure that, if something happens to you, you and your loved ones will have the right personal and financial cover to get you through difficult times.

When it comes to good financial advice, the best financial plans start with protecting what you have and the most important of all – your health, your life, your income and your family. With the right personal protection plans in place, you have the security of knowing you have a degree of financial resilience during uncertain or difficult times.

What is Personal Protection?

Personal Protection is a broad term that refers to insurance policies designed to cover your health and wellbeing, provision of private healthcare, your income and your life. For example, this includes life insurance, which can ensure your loved ones don’t endure financial hardship if something happens to you, and health insurance that can pay an income if you are too sick to work or a lump sum if you are diagnosed with a serious illness.

What kinds of Personal Protection are there?

There are a number of protection policies available and a wide range of providers in the UK market. The key insurance plans are:

Term Assurance (Life insurance or Life Cover)

Term Assurance is the most common form of life cover or life insurance. It is designed to insure you for a lump sum for a specified number of years or to a certain age. This type of policy is most typically used to cover a mortgage by paying out a tax-free lump sum should you die during the period of such cover. Policies can be arranged to provide a fixed level of cover, if the mortgage repayments are on an interest only basis, or on a decreasing basis, if you have a repayment mortgage.

Income protection insurance

Income Protection (also known as Permanent Health Insurance) is designed to provide a replacement income if you are seriously ill or injured and unable to work. This means you still have available income to pay for treatment, make your mortgage payments on time and provide for family, avoiding the serious knock-on effects that are common when a household income is lost.

Critical Illness Insurance

Critical Illness Insurance is designed to pay a one-off, tax-free lump sum for a specified number of years or to a certain age if you are diagnosed with a serious (‘critical’) illness. This may be used, for example, to pay down or pay off large financial commitments such as your mortgage, to fund treatment and healthcare needs, or to make adaptations to your home. Policies can cover up to 170 illnesses or conditions, with the main ones being heart attacks, strokes and many forms of cancer. Critical Illness can also be attached to standard Life Cover (Term Assurance) policies when taken out.

Whole of Life Insurance

Whole of Life Cover provides a lump sum payment on death. As the name suggests, this life insurance is provided for your whole life, rather than a specified term (providing you keep up the payments). Used intelligently, this type of plan can help protect your family whilst they are still financially dependent and, in some cases, be used to pay any Inheritance Tax on your estate when you die.

Private Health Insurance

Private Health Insurance (often abbreviated to ‘PMI’) is designed to cover the cost of using private healthcare services instead of NHS treatment if you are struck by acute conditions that require medical care. There are many options for this kind of insurance offering different levels of flexibility and cover. Private healthcare can mean receiving treatment faster and at a chosen location, but it’s important to note that chronic conditions (ongoing conditions and conditions you already have – for example, having a history of back ache) will not normally be covered.

Creative’s Personal Protection advice has you covered

Creative’s Wealth Management Team of Chartered Financial Planners provide comprehensive Personal Protection Advice and planning, taking care of the market research and paperwork for you. We will ensure you get the best value and best terms possible and make the application process as simple and straightforward as possible. Don’t let the unexpected derail your plans for the future – talk to Creative today.

We also offer Business Protection advice for business owners, directors, partners and shareholders. Click here for more information.


Important information about insurance and protection policies

  • This is a non-investment, pure protection policy and has no cash in value at any time
  • Some conditions may not be covered by a critical illness or income protection policy
  • If you stop paying into a protection policy, you will no longer be covered.
  • With any type of health-related insurance, there are no guarantees that you will qualify for a policy – the insurance company’s underwriters will typically assess your application based on your health and lifestyle

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