Protection Flashcards
IP
Provide a regular income when unable to work due to accident or illness
Usually up to 60% of salary
CIC
Lump sum if diagnosed with one of the listed critical illnesses
PPI (Payment Protection Insurance)
Provide reg income, to cover loan or credit card if repayment of the insured is unable to work
Key Person Insurance
Company take out insurance on an employee who is vital to the business profitability
Most commonly term assurance
Partnership Protection
Protection for remaining partners should one die or become ill
could be a buy sell agreement - where surviving partners are obliged to buy the deceased shares
cross option agreement - not binding, option to buy the deceased partner’s share
Shareholder protection
similar to partnership protection with different tax treatment
Application process, need to know
age, health, family history, lifestyle, occupation
Product Options
written into Trust
Own life, life of another, joint life first death, second death
Inflationary protection
Deferral period
Buy Back
Waiver of Premium
Terminal Illness Benefit
Own Occupation/ Any occupation
Guaranteed / Reviewable Premiums
Main protection reasons to need protection
Against death and illness
Debt
Fund essential expen such as school fees
Private medical costs
