Thinking of Cancelling Your Protection Insurance?

Back to News & Views

Life Insurance: Remember, It’s not for you - it’s for them! Life insurance is for your family to make sure there is a roof over their heads and food on their table. It’s to ensure that they can continue living the life and doing the things you’d want them to, if the worst happened and you weren’t around.


You would want to be covered in the unlikely event that you were to die from COVID-19.


The cost of life insurance increases as you get older, so retaining your existing policy will help ensure you benefit from, in most cases, lower monthly premiums than you would get if you started a new policy.


If you have developed a medical condition or your health has deteriorated since taking out your policy, you may find getting another policy could cost significantly more or you could even be declined cover.


Many policies include extra benefits, such as remote access to GPs, second medical opinion services and other expert support services to help with physical and mental wellbeing. These could be invaluable in current times.


Critical Illness: Whilst it’s the impact of Coronavirus that the population is worrying about, every day people are still being diagnosed with cancer and suffering from strokes and heart attacks. These haven’t gone away and the impacts on people’s lives can be devastating, both health-wise and financially. Critical and serious illness policies are designed to help you and your loved ones cope if you were to be diagnosed with a critical illness.


Given that one in two of the population are expected to suffer from cancer during their lifetime, critical illness provides valuable peace of mind.


All Critical Illness policies are medically underwritten and whilst in many cases this will be undertaken through online medical underwriting, it may require the insurer to access records from your GP or for you to undergo medical examinations. Taking out a new plan would involve going through medical underwriting again.


If you have developed a medical condition or your health has deteriorated since taking out your policy, you may find getting another policy could cost significantly more, you could have medical exclusions added to your policy or you could even be declined cover.


As with life insurance, the cost of Critical Illness rises with age, so you are likely to find the cost of a new policy higher than the one you have.


Income Protection: An income protection policy is put into place to provide an income if the policyholder is unable to work due to an accident or ill health. Policies include a deferred period, before a claim can be made (usually 3 or 6 months), but some have shorter periods and can even payout from day one.


If the definition of disability were met as a consequence of the Coronavirus, or its impact on underlying or existing conditions, then we would expect the income protection claim to be paid.


While everyone is currently worried about the Coronavirus, it is not the only scenario that could stop you working. Being involved in an accident or suffering from a separate illness are just, if not more, likely to prohibit you from being able to work. Maintaining your Income Protection premiums will help ensure you and your family can cope financially.


Accident, Sickness and Unemployment Cover/Mortgage Payment Protection Insurance: These policies are designed to cover the costs of your mortgage and other key expenses in the event of you being unable to work due to accident, sickness or in some cases unemployment.


If you have developed a medical condition, you may find the condition is excluded on any future policy you took out.


Many Insurers have withdrawn unemployment cover from the market, so if you cancel cover with this option you may well find that you can’t purchase it again. And if you did cancel, there would be an initial exclusion period during which you would be unable to make a claim. The fact that the insurers have withdrawn cover is a good indication that they believe the risk of redundancy claims over the coming months is likely to rise significantly. You will know your individual circumstances, but in an uncertain economic environment, unemployment cover could be invaluable.

Book your FREE, no obligation discussion today. Schedule Appointment

Sign Up to our mailing list - Receive regular news, tips and financial commentary from the Gemini Team.

Latest News

  • During the lockdown months of 2020 many commentators speculated that the UK was heading into a major period of recession - despite the UK government’s attempts to support the economy with its Job Retention Scheme and other measures [...]

  • Income protection is an often overlooked member of the personal insurance family. While most people have life cover, and most have at least heard of critical illness, many are unaware of the benefits an income protection policy can offer. [...]

  • Estate planning is an often neglected area of financial planning. This is understandable, as no one likes to think about the worst happening. But a strong estate plan has a number of benefits [...]

  • The world has changed in recent months, and many people have discovered that their jobs are not as secure as they once thought. It remains to be seen how we will emerge from the pandemic, both as a society and as an economy. Redundancy is a significant concern across a number of industries. [...]

  • Many media outlets and pundits anticipated that the Chancellor’s Summer Economic Update would not contain major policy developments. Yet there was a range of announcements that will likely have important implications for the UK economy and household finances. [...]

  • The latest issue of our moneymatters magazine is now available to downlaoad. A return to how life was at the start of 2020 is some way off. Even now that lockdown restrictions are starting to be eased, coronavirus (COVID-19) will continue to affect our lives in many ways. [...]

  • With the recent uncertainty surrounding Coronavirus and oil prices, despite us being well into the tax year, many people are adopting a ‘wait and see’ approach before putting any more money into the market via their ISAs or pensions. [...]

  • While we may often neglect our health, many people are finding it at the forefront of their thoughts in the current climate. People across the world are taking measures to avoid the virus, both for their own wellbeing and to protect the vulnerable people around them. [...]

  • Most of us put off estate planning as we don’t want to deal with difficult decisions or tempt fate. But there is nothing like a global pandemic to remind us of our own mortality, and consider how our loved ones would cope if anything happened to us. [...]

  • At times like these, we look to potentially save on unwanted expenditure, BUT, beware of cancelling protection insurance policies [...]

  • 1 in 8 homebuyers don’t discuss their protection needs! Buying a property is usually the biggest financial obligation many of us will take on in our lifetime, and it’s an obvious moment to pause and consider our protection needs. [...]

  • While many clients understand the potential of an investment plan, or the tax-efficiency of a pension, estate planning is a less exciting prospect. No one wants to think about their own mortality, and taking steps to plan for death can seem like tempting fate. [...]

Gemini Wealth Management Ltd is Authorised and regulated by The Financial Conduct Authority Registered in England & Wales No. 5919877 Registered Office: Gemini House, 71 Park Road, Sutton Coldfield, West Midlands B73 6BT The Financial Conduct Authority does not regulate tax and trust advice, will writing and some forms of buy to let mortgages. The guidance and/or advice contained in this website is subject to regulatory regime and is therefore restricted to those based in the UK.

Website by Mellow Marsh Software
© Gemini Wealth Management Ltd
Privacy Notice | Cookie Policy