Insurance

For an endowment / interest only mortgage where the sum assured and the death benefit are at least equal to the amount of the loan throughout the term of the loan, level term assurance would be appropriate.

Critical Illness Cover (CIC)

This type of Insurance which covers against specified critical illnesses. The list of illnesses covered usually includes heart attack, cancer (some forms are exempt), stroke, coronary artery surgery, kidney failure, major organ transplant, total and permanent disability (not AIDS). In the event that you're diagnosed with one of the specified illnesses, the insurers would pay out a lump sum. Payment of the lump sum is not delayed until death from the contracted illness. The lump sum can be used to:

• Enable the sufferer to repay the mortgage in part or in full 
• Make the sufferer’s last days / years more pleasant
• Enable the sufferer to move to more convenient accommodation
• Enable the sufferer to pay for private medical treatment or help in the home if needed

This type of policy can be arranged on a level or decreasing basis as ‘stand-alone’ contracts or with an element of life cover built in. It is often cheaper to have a critical illness policy with life cover included than it is to have a stand-alone policy as the insurer would expect a critical illness to occur before death.

Permanent Health Insurance (PHI)

In return for regular premiums, Permanent Health Insurance provides an income in the event that the policyholder contracts a long-term illness or injury and is unable to work. There is no payment on death. Benefits are paid usually after a waiting period of several months or even a year (known as the deferment period), during which time the employer will often pay the employees salary. The longer the deferment period, the cheaper the premium.

Benefits are usually paid until recovery, retirement or death. ‘Permanent’ means that the policy cannot be cancelled by the provider on the grounds of heavy claims experience therefore, it is possible to claim more than once under the same policy. Some companies offer limited benefits to housewives. Proportionate benefit may be payable if a lower-paid job is taken due to disability.

The maximum benefit is usually 50% - 65% of income (plus state incapacity benefits) – this is to ensure that the claimant is encouraged to return to work as soon as they are able because the income from the policy will be less than that received from their usual employment. Protection is chosen for a term ending at or before state retirement age. Premium levels are higher for some occupation and benefits are paid tax-free for policies effected by individuals.

Family Income Benefit (FIB )

This is type of term assurance in which, following the death of the life assured, instalments, rather than a lump sum, are paid to the beneficiary for the remainder of the policy term. If the life assured lives to the end of the term, no benefit is payable. The benefits can be paid quarterly or monthly. This method is suitable for dependents who may have trouble coping with a large lump sum and might spend it all at once leaving themselves with nothing to live on later. The payments are treated as instalments of capital and are therefore not subject to income tax. There is usually an option to commute the payments into one lump sum which would be less than the outstanding instalments.

Mortgage Payment Protection Insurance (MPPI / ASU)

This covers the loan repayments made by borrowers in the event that they are unable to meet them, for example, through illness, accident or redundancy.

The monthly benefit paid out is linked to the mortgage and associated costs (ie – mortgage protection premiums / home insurance premiums) and is payable for one or two years maximum.

Buildings & Contents Insurance

This will pay the cost of repairing or rebuilding your home if it's damaged by unforseen events. The additon of contents insurance will cover the cost of replacing possessions lost, damaged or stolen. We can offer a wide range of products to suit your individual requirements whether you are purchasing a new home, or simply looking for a more cost-effective replacement for an existing policy. We can also arrange specialised cover for landlords. Please call us for a quotation.

Private Medical Insurance

This insurance will enable you to 'go private' should you or your family need medical treatment. A sensible precaution when you consider the average NHS waiting list! Again, we can offer products from a wide range of providers to suit your needs and budget.

Commercial Insurance

We are able to arrange a variety of business-related insurance, such as Public Liability, Professional Indemnity, Office Insurance, Shop Insurance etc. Please give us a call with your requirements and we will obtain a competitive quotation for you.

For more information about how we could help you, call us on 01689 824000

Email us at info@linkfm-online.co.uk or complete our Enquiry Form

 

It's important to ensure that you, your family and your home are adequately protected in the event that the worst happens, particularly if you have taken on a large financial commitment, such as a mortgage.

There are various ways in which you can do this cost effectively. As we are fully independent, we can source products from across the market place and provide you with product comparisons and quotations to suit your individual needs.

Here are some of the options available:

Mortgage Protection

This is term assurance to cover the repayment of a mortgage in the event of death during the period of the loan. There is no maturity value / surrender value at any time. In the case of a repayment mortgage the capital sum outstanding is gradually reduced over the term of the loan (albeit slowly during the initial years when the majority of the repayments are paying the interest) so that decreasing term assurance would used.