Other protection policies in London and the UK- income protection insurance, critical illness insurance, accident, sickness and unemployment insurance

Income protection insurance plan

Income protection policies provide an income that starts after a deferred period of your choice, should you be unable to work, due to sickness or injury. Once the income protection policy is accepted by the insurer, the premiums cannot be increased or claims refused, regardless of the number of legitimate claims.

Income protection insurance premiums

Income protection premium rates are based on occupation, age, health, level of cover, term, deferred period, gender and smoking status. Some insurance companies have introduced reviewable premiums that increase depending on the overall claims experience.

There are many different types of income protection policies available. Great care must be taken over examination of the circumstances in which the insurance companies will pay out.
If as a result of sickness or injury you cannot carry on your normal line of work, the insurer may not admit the claim, unless you are incapable of performing any paid employment.

Sickness and accident insurance plans

These plans are general insurance products offered on an annual basis.

This implies that an insurer has the right to refuse to renew or can increase premiums in the event of a change of circumstances or adverse claims experience. A personal accident and sickness insurance policy will offer a lump sum benefit during an accident, in the event of: death, loss of limbs, irrevocable loss of sight in one or both eyes, permanent total disablement.

Generally, the benefits from a personal accident and sickness insurance policy are not taxable; therefore lump sum benefits are paid tax free.

Private Medical Insurance Plan

Private medical insurance policies pay for the cost of medical treatment, regardless of whether the policyholder is an in-patient or out-patient, and provided they require health care.

There are many different types of private medical insurance policies available. Some private medical insurance policies will provide cash payment if NHS treatment is received. The cost is based on age, the number of family members requiring cover and the hospital band required.

Hospital bands depend on the area and facilities available: for example, central London hospitals are the most highly graded.

Premiums are reviewed annually and increase with age and overall claims experience.

Many private medical insurers do not seek medical evidence on new applicants. They simply impose a moratorium that they will not cover any treatment arising from a pre-existing condition for a certain time period.

Generally, the benefits from a private medical insurance policy are not taxable.

Insurance London-Life insurance and protection policies in London and the UK

Life insurance and other protection policies are designed to protect you and your family against the possible occurrence of unforeseeable mishaps or from the inevitability of certain life’s natural events.

Types of life insurance include term assurance, whole of life assurance, income protection insurance, critical illness insurance, accident, sickness and unemployment insurance.

The type of life insurance or protection policy and amount of cover would vary from person to person. It may largely be dependent on an individual's particular circumstances and requirements; such as age, dependants, level of  income, financial liabilities etc.

Term assurance provides cover for a fixed term, with the sum assured payable only on death. Term assurance premiums are based primarily on the age and health of the life assured, the sum assured and the policy term. The older the life assured or the longer the policy term, the higher the premium.

The principal type of life insurance most commonly in use at current is unit-linked whole of life, which offers a variable mix between investment content and life cover.

Whole of life assurance premiums is a scenario whereby the initial premium is usually fixed for 10 years and is generally reviewed at that point to see whether the growth of the investment fund is sufficient to maintain the same premium level. It is possible that the premium may have to increase, or sum assured reduce, at that point. Product types available for whole of life assurance include the following: with profits whole of life; unit linked whole of life; low cost whole of life; universal whole of life and non-profit whole of life. 

With-profits whole of life assurance.

This type of policy guarantees to pay the sum assured on the death of the life assured at any time. The policyholder pays an extra premium to allow participation in the “with profits” fund, which works on a traditional “with profits” basis, in that the sum assured is increased annually by the addition of a bonus – called a reversionary bonus.

Unit linked whole of life assurance.

With this type of policy, the ‘mix’ between life cover and investment is decided at the outset. Each monthly premium is used to buy units in a selected fund at an offer price.

Then every month, the insurer calculates the cost of the life assurance for the next month only, and deducts this charge by ‘cancelling’ just enough of the policyholder’s accumulated units to pay for the cover.

 In this way, the policy grows in value as the number of units held in the policy accumulate and (hopefully), the value of each unit also increases.

Universal whole of life assurance.
This type of policy is a unit linked whole of life plan with further options. As well as cancelling units to buy life cover, they can be cancelled to buy components such as: permanent health insurance, critical illness insurance, personal accidents benefits, and hospital system benefits.

Building and Contents insurance in London

Building and content insurance appear under the banner of home insurance. While contents insurance makes reference to a cover of damages or loss that might occur to one’s personal possessions that are contained but unattached to a particular building or structure, building insurance covers any damages or loss that might occur to the building or house itself, which stem purely from unforeseen circumstances. Both contents and building insurance can be applied separately, but numerous home owners deem it appropriate to obtain these two types of insurance as a blended package.

Buildings insurance:

This insurance provides indemnity to your house in the event of a disaster, whereby your house is severely damaged to the extent that it requires to be entirely rebuilt. The factor which gave rise to the damage must have been completely beyond your control; for example, storm or flood damage, a major fire, smoke or explosions, water leakage/burst pipes, subsidence, or third party vandalism or damage etc. Mortgage providers will insist that you take out this cover, to enable them recover their losses in such events. It is like a type of security or collateral for the loan that they have given to you.

Contents insurance:

This covers all items in your house which do not constitute part of the property itself; for example, furniture, jewellery, appliances and clothing. Most of the available contents insurance policies will even cover aspects like the contents of your refrigerator and freezer! The cheapest type in this category is indemnity insurance. This cover would normally restore exactly what was there before. So, if you claim for a washing machine that was already three years old, you will be given a replacement washing machine that is three years old. The more expensive "new for old" option will give you a brand new replacement of whatever gets damaged or stolen. Contents insurance will cover you in most of the same situations as buildings insurance, but also includes theft. Again, any of these perils must have been beyond your control.

The Importance of contents and building insurance:

Some mortgage suppliers will make this type of insurance compulsory when you take out a mortgage with them, to cover their loan. Otherwise, this insurance is highly recommended, to protect you against unforeseen circumstances. Virtually every home in the country would have this type of insurance just for that reason; and it would ultimately be extremely costly, if you abstain from taking this type of insurance.

Unlimited cover ensures that you secure compensation for damages to your house or content arising from events including: storm, floods, fire, lightening or explosions, fallen trees or branches, subsidence, drag or landslip, breakage of glass or sanitary fittings, damage from escaped water or oil, shock caused to the house by animals, vehicles or aircraft etc. There is a range of optional extras that you can include to your insurance package, but at an additional cost. You can best discourse this with your insurance provider.

Motor Insurance in London

Car insurance can be regarded as an act, measure or provision that offers protection, be it financial or otherwise; in the event where an undesirable event occurs with the car, such as accident, theft, fire etc. Each time your car is driven on a public road by either you or someone else, there is always potential risk of damage to your car, to yourself and to third parties and their property. In London and the UK, car insurance is mandatory for all car owners. Under the UK’s Road Traffic act, it is an offence to drive a car on a public road without insurance. 

The three types of car insurance in the UK are as follows:

·        Third Party Only (TPO) - (the minimum car insurance required by UK law)

·        Third Party Fire and Theft Car Insurance

·        Fully Comprehensive Car Insurance

Third Party Only (TPO) - (the minimum car insurance required by UK law)

Third Party only insurance covers the policyholder against the cost of damage to a third party's property or to the third party themselves.

This implies that if you crash into another car, a wall or if someone is injured by your car, the insurance policy will pay out for everything except damage to yourself or your property. It basically covers damage to anything or anyone effected by your car, except you. The insurance company will not pay out if your car is damaged, stolen or catches fire, nor will the insurance company pay for any of your medical expenses.

Third Party Fire and Theft Car Insurance

This is the same as third party only insurance, with the additional cover against your car catching fire or being stolen. Depending on the vehicle, this can be substantially more expensive than TPO.

Fully Comprehensive Car Insurance

A fully Comprehensive car insurance policy will offer the same protection as above, in addition to damage to your own car and or passengers, even if the accident or incident is your fault. Most Fully Comprehensive Insurance also offer additional cover for your belongings, windscreen cover, medical expenses etc. When comparing car insurance quotes, it is highly recommended that you look at the insurance policy (Certificate of Motor Insurance), and compare the cover being offered.

Remember that Comprehensive Insurance doesn't provide insurance cover for everything. The BIBA (British Insurance Broker Association) has suggested that a good comprehensive policy should provide six key protections as follows:

·        Cover for your spouse - as a 'named driver'. This shouldn't add to the cost

·        Third Party Repair - Pays for the cost of repairing someone else’ scar

·        Third Party Replacement - Pays for the cost of replacing someone else's car whilst theirs is being repaired following damage you've caused.

·        Damage to your car - Covers the cost of repairing or replacing your vehicle

·        Third party liability - Pays for the cost of repairing someone else's property (including caravans and trailers) if you damage it. It also covers injuries to passengers and any others involved in an accident.

·        Green Card - In addition, you can expect assistance to making motoring abroad easier. If you travel to continental Europe, you can ask your car insurance company to issue an international certificate of motor insurance, or 'Green Card'. This could simplify dealing with the authorities if you're in an accident.

There are numerous other components that can be added to this particular insurance policy. It’s just a matter of stating your preferences to the car insurance company.