For many of us, the last year has brought into sharp focus just how unpredictable life can be.

And when faced with unpredictable and seemingly uncontrollable situations, people often look for new ways to protect themselves and their family.

This has certainly been the case for personal protection insurance, with internet searches for ‘Life Insurance’ spiking in both the second and third national lockdowns.

In the same way that most of us take out car, home, and gadget protection without so much as a second thought, it seems the pandemic has encouraged people to take a similar attitude to personal protection too.

So, if you’re part of a growing number of people looking to safeguard the health and wealth of yourself and your family, we’ve laid out the three most common types of personal protection insurance that will help you come out of this pandemic more positive about your future.

1 – Income Protection: Support when you’re unable to work

The magnitude of the recession caused by the pandemic is unprecedented in modern times, with GDP experiencing the steepest drop since records began over 70 years ago.

Whilst the current roadmap out of lockdown is certainly expected to help recovery efforts, financial experts still disagree on just how quickly the economy will recover.

This has, unsurprisingly, left many of us with an overwhelming sense of financial uncertainty. What would happen if an accident or illness kept me away from work for a few months? Would I be able to continue with my mortgage payments if my paycheque took an unexpected hit?

Every year, 1 million workers in the UK find themselves unable to work long-term (over four weeks) because of an unexpected injury or illness, which is why Income Protection has become such a welcome support for families across the country.

Income Protection essentially works as a support package that pays out a monthly income whilst you’re not at work due to accident or illness (find out about COVID specific rules here). It can help you keep on top of your bills and other financial commitments, reducing the worry and stress of losing your income.

Better yet, it does more than protect you and your family from the burdens of poor physical health. It can support you through mental health conditions too.

In a study conducted by MIND in June 2020 (during the first national lockdown), the coronavirus pandemic and sudden isolation caused more than half of UK adults to experience a worsening in their mental health.

If you too find yourself struggling to adapt to seemingly constant rule changes and new ways of working, having Income Protection in place will help by reducing any stress should you be unable to work.

2 – Critical Illness Cover: Support for your family when you’re critically ill

Let’s start with the good news first.

According to a report by Royal London, more people are surviving the ‘big three’ serious illnesses – cancer, cardiovascular disease, and stroke – than ever before.

But with over 7.6 million people living with heart and circulatory diseases in the UK, and almost 370,000 new cases of cancer detected every year, it begs the question; what happens to your finances if you get diagnosed with a critical illness?

Suffering from a critical illness can affect anyone at any age and can completely turn lives and finances upside down.

Unlike Income Protection, which pays out monthly for any accident or illness that leaves you unable to work, Critical Illness Cover pays out a lump sum if you are diagnosed with a specified critical illness covered by your policy.

Examples of illnesses typically covered include:

• Cancer
• Heart attack and heart disease
• Stroke
• Kidney failure
• Multiple sclerosis

Critical Illness Cover not only helps to ease the financial burden if you’re unable to earn, but it can also be used to cover any treatments and resulting medications. What’s more, it can help cover any loss of earnings should your partner take time off work to care for you.

As with Income Protection, it gives you and your family one less worry in what would likely be the most challenging time of your life.

3 – Life Insurance: Support for your family when you’re no longer around

Loss of life is undoubtedly one of the worst things that can happen to a family, and that’s why Life Insurance should form the foundation of any effective financial plan.

Having Life Insurance in place gives you the ultimate peace of mind that your family will be looked after even when you’re not around.

Like with Critical Illness Cover, it is typically paid out as a lump sum and is given to your family upon your death or claimed on the diagnosis of a terminal illness (the definition of which is less than 12 months to live).

This money can then be used to cover:

• Funeral costs,
• Outstanding mortgages and debts,
• Financial stability for your family,
• A whole of life can be used to cover Inherence Tax Liability,
• Or to leave a legacy behind

As most of us have seen on the news and first-hand over the last year in particular, losing a partner, parent, or loved one is often emotionally and financially disruptive.

Putting a Life and Health Insurance Plan in place now means you can step out of lockdown with a greater sense of control over your family’s future.

How Way More Solutions can help

The almost constant news coverage of the pandemic over the last year has made many of us view our own mortality like never before. Illness and death really can affect anyone of us at any time.

So, before the hustle and bustle of post-pandemic life starts to set in, it’s time to tick off those all-important life admin tasks, the biggest of which should be organising your personal protection.

For help finding the most appropriate insurance for your unique circumstances, why not reach out to an insurance broker here at Way More?

As Life and Health Insurance specialists, we know the market inside and out and will always go the extra mile to get the most suitable terms for you.

To get started, simply fill in the form below, and one of our experienced and friendly advisors will be in touch.