Personal Protection Insurance

Personal Protection Insurance (PPI) helps provide financial security for you and your family if illness, injury, or unforeseen circumstances affect your income.

Below we’ve answered some of the common questions to help you understand how protection insurance works and how it can support your financial wellbeing.

What is Personal Protection Insurance?

Personal Protection Insurance (PPI) — sometimes called life and family protection — is designed to provide financial support if you die, become seriously ill, or are unable to work due to accident or illness. It protects your dependents, you and your income so essential expenses can still be covered.

What types of protection insurance are available?

Life Insurance

Pays a lump sum if you die during the policy term.

Critical Illness Cover

Pays a lump sum if you’re diagnosed with a specified serious illness (such as cancer, heart attack, or stroke).

Income Protection

Provides a regular income if you can’t work due to illness or injury.

Family Income Benefit

Pays a tax-free monthly income to your family after your death.

Some policies can be combined for broader cover.

Who needs personal protection insurance?

Anyone with financial commitments — such as a mortgage, rent, dependants, or regular bills — could benefit. It’s particularly important if:
– You have children or a partner who relies on your income.
– You’re self-employed or employed to give income when sick pay stops.
– You want to protect you/your household from sudden loss of income.

How much cover do I need?

That depends on your circumstances — for example:
– Your outstanding debts (mortgage, loans, etc.)
– Regular household expenses
– Number of dependants and their needs

A financial adviser can help you calculate the right level of cover for your budget and goals.

How much does personal protection insurance cost?

Premiums vary depending on:
– The type and amount of cover you choose
– Your age, health, occupation, and lifestyle
– Whether you smoke
– The length of the policy term

Even a small monthly premium can provide significant protection for your family’s future.

Are payouts from protection policies taxable?

Most life insurance and critical illness payouts are tax-free, although inheritance tax (IHT) could apply if the policy isn’t written in trust. Income protection benefits are taxable if paid as replacement income.

It’s always worth seeking tax or financial advice tailored to your circumstances.

Can I have more than one protection policy?

Yes. You can hold multiple policies — for example, a life insurance policy and a separate income protection plan — to meet different needs. Your adviser can help ensure your policies complement each other rather than overlap.

What happens if I stop paying premiums?

If you stop making payments, your policy will usually end and you’ll no longer be covered. You won’t normally get any money back, as most protection policies don’t have a cash-in value, similar to home and car insurance.

Can I change or cancel my policy?

You can cancel your policy at any time. Most providers offer a 30-day cooling-off period from the policy start date for a full refund. If your circumstances change (for example, you move house or have a child), you may be able to adjust your cover — check with your provider or adviser.

How do I make a claim?

Contact your insurer or adviser as soon as possible. You’ll usually need to provide:
– Your policy number
– Details of the illness, injury, or death
– Supporting documents (e.g. medical reports or death certificate)

Will my application require a medical?

Some insurers may request a medical questionnaire or short examination, depending on your health and the level of cover applied for. Many policies can be arranged quickly.

Is advice available?

Yes, but before we offer any advice and recommendations we will always conduct a thorough fact-find to make sure we understand your personal circumstances. It’s possible you already have enough protection in place, or enough savings to see you and your family through any financial disruption, and we will confirm this if it is the case.

If you don’t, we will look at what protection you’ve taken out personally, any protection your employer gives you, and any state benefits you may be entitled to. We’ll also help you consider how long you could pay essential bills if you are unable to work, and establish if there are any potential gaps in your protection needs.
 
Once this is worked out, we’ll research the most suitable products, before designing a bespoke solution that’s tailored especially for you. Our recommendations will offer the right cover for your budget. 

We always offer a free, no obligation, initial consultation.