Over a hundred companies offer protection plans. There are numerous different products, costs and charges to consider, as well as the small print on policies and, in some cases, investment performance.

Protection plans pay out a lump sum or income on death or illness, in return for regular premiums or a one-off payment. There are various types of cover to consider:

Term Assurance

This offers cover for a fixed number of years, whilst the children are growing up for example. It is very important to establish exactly how much cover will be required in the event of death.

Whole of Life

A Whole of Life plan safeguards the financial security of your family for a longer period.

Regular Savings Policies

Commonly known as endowment policies, this sort of plan pays out an assured sum on death, or a tax-free lump sum if you are alive after the final premium has been paid.

Critical Illness

A Critical Illness plan pays an agreed sum either on death, or should the person named on the policy be diagnosed with a condition specified in the plan’s terms.

When choosing a life assurance company, it is important to shop around. If your policy is to have an investment aspect, you need to study the performance ratings of several companies.

When thinking about life cover, you need to consider the following:

Can I alter the amount of cover should my circumstances change?
Is an endowment policy still a good idea?
Does my plan allow for inflation?
Can I surrender my policy at any time?
Can I insure myself against redundancy?

A discussion with your IFA will help you to answer these questions and can advise you as to the best course of action to take to ensure that you and your family are protected should the unexpected happen.