As a parent, providing for your children is a top priority – from making sure they have food on the table, to ensuring they have the extras they need in life.

Putting income protection in place means you’ll always be able to support your children with a regular income if the unthinkable should happen and you’re unable to work because of serious illness or injury.

Keeping your family financially healthy.

2024 research from LV shows that the average UK worker’s income supports three people, yet 65% of the working population have experienced a life event where protection might have provided support¹

As a parent, your children depend on you financially. But should you become ill or injured and unable to work, would your family be able to manage without your income?

Would your family be able to cover all the essential monthly outgoings – not to mention the extras you’re used to having?

In a two-parent family, even with a safety-net of sick pay and savings, you might struggle to keep up with your regular outgoings on one income, especially if you’re not well enough to go back to work for a substantial amount of time.

Financial struggle for your family is the last thing you need when you’re trying to recover from a medical condition.

Are you a one-income family?

It’s also worth bearing in mind that becoming a parent may mean you now only have one income if one parent is staying at home for childcare purposes. Protecting this main source of income is essential, as is the case with one-parent families. With the rising cost of childcare and bills, the need to protect your family against financial difficulty is more important than ever.

Income protection can give you the support you need, when you need it most.

By protecting your family this way, you can get help with mortgage payments, bills and food, as well as clothes, transport and leisure – protecting not just your essential outgoings, but your family’s lifestyle too. Putting income protection in place alleviates the risk of financial instability by providing your family with a regular source of income, so you have the peace of mind that your children will be provided for until you get better.

Income protection can be discussed with your adviser – so you can make sure you have the right protection in place to protect you and your family’s financial future.

Call us on 020 7317 7311 or email info@chapelgateprivatefinance.com.

However, a barrier stopping some from taking out financial protection is the view that insurance companies do not pay out or that they will find any excuse not to honour the claim. But is this actually true?

In reality, this is an unfortunate case of fake news and a worrying myth that is preventing some borrowers from having these important financial safeguards in place.

Do insurance companies pay out on protection?

The latest annual figures from the Association of British Insurers (ABI), show the protection industry paid out 98.3% of new claims in 2023, totalling more than £7.3 billion. This is a 14% increase in the total value of claims paid compared to 2022.

Furthermore, individual policies such as life insurance, critical illness and income protection saw a 14% increase in the total value of claims.

How do different protection insurances compare?

• 5% of critical illness claims were paid, with the value of claims averaging at £68,354
• 7% of life insurance claims were paid, with an average claim value of £80,403
• 32% of income protection claims were paid, with an average claim value of £22,270pa

So, with insurance companies paying out more than £20 million per day in 2023, we can definitely say that the myth of insurers not paying out or honouring claims is fake news.

Why would an insurer not pay a claim?

Given the strength of the data, it is hard to know why such a misconception exists. This is especially true as the data from the ABI continues to trend upwards each year.

Of course, there are cases where an insurer is unable to pay out on a claim. As part of its research, the ABI revealed that the main reasons for not honouring a claim is policyholders not accurately disclosing their medical history or habits when they took out the policy, or the claims not meeting the policy definitions.

How can we overcome this? It’s really important to be open and honest with your mortgage adviser when discussing financial protection. Whether it’s answering lifestyle questions honestly or disclosing pre-existing conditions or health concerns, this allows your adviser to pair you with the right product and provider. It also means the provider can fairly assess your application on accurate information.

Is it too late?

If you have thought that the myth of insurers not paying out was true, the good news is that it is never too late to put some protection in place. A financial adviser is best placed to run through all the options available and provide choices that suit your individual needs and your budget.

Best of all, your adviser will review with you regularly to make sure those products are still suitable and continuing to meet your needs. This is particularly useful if your situation changes during the life of the policy – such as a new job, your family grows or your health changes. Plus, they can help you make the most of any inclusive services (such as counselling, remote GP services or physiotherapy sessions) or even help make a claim if needed.

While we all may expect to pay our mortgage every month, the truth is that life is unpredictable. Whether it’s our health or something else, all could throw a spanner in the works and leave us in a difficult financial position. In those challenging moments, protection insurance can offer a solution and real peace of mind. If you’re renting, buying or remortgaging it’s never been so important to have that conversation and put that financial safety net in place for you and your family.

Talk to us to explore your protection options and we can tailor a plan that meets your specific needs and circumstances.

Call 020 7317 7311 or email info@chapelgateprivatefinance.com

With the rise in the cost of living and borrowing, many people are worried about paying the bills if anything happens that leaves them unable to work. Recent surveys have shown that the average UK family doesn’t have enough in savings to be financially secure for long if they’re no longer receiving an income.

What is critical illness insurance?

Critical illness insurance pays a one-off, lump sum if you’re diagnosed with a condition or disability that is covered by your policy. It covers a set number of years and can be offered as extra coverage when you apply for life insurance. You can choose whether you want the payout to rise over the course of the term (so it keeps up with inflation) or the opposite – decreasing because you aim to cover something specific like your mortgage.

How does critical illness cover work?

Certain illnesses are covered as standard by most insurers, including, some types of cancer, heart attack, stroke, organ failure, multiple sclerosis, loss of arms or legs and Alzheimer’s and Parkinson’s disease. Some providers may allow you to add additional illnesses to your policy, which you’ll pay more for. Your children could also be covered as part of your policy so ask your adviser about these options if it’s something you’re keen to have in place.

Although a critical illness diagnosis can mark the start of a claim in some policies, others may only begin to offer protection once your illness hits a certain level of severity. It’s important to work with a financial adviser when reviewing a policy and all the small print before you commit to make sure you are aware of areas not included.

An adviser can help you figure out the best approach to your life insurance plan and any other coverage you need for you and your loved ones.

What is life insurance?

Life insurance pays an agreed lump sum to your loved ones (or any other beneficiaries) when you die. The terms of the amount paid out are set when you buy your policy. Life insurance is there to help ensure your family has financial security during a difficult time without you and to give you the peace of mind that they will be able to continue to pay the mortgage for example.

1. Term assurance

Runs for a set number of years and a payout is made if you die during the term. Once the term comes to an end, coverage also ends, so if you die after the end of the term, there is no payout.

2. Whole life insurance

Carries on for as long as you are alive and will pay a lump sum when you die. Whole life will cost more in premiums than term life, and you will keep paying the premiums on your policy throughout your life, to stay covered.

3. Employee life insurance

Check with your employer to see if you are covered by employee or group life insurance (also known as a death-in-service benefit) as part of your contract. This coverage usually pays between two and four times your annual salary.

“Life insurance pays an agreed lump sum to your loved ones (or any other beneficiaries) when you die.”

Get in touch

We can help you understand how critical illness cover and life insurance helps to provide financial security for you and your family. Please get in touch to arrange a time to chat, telephone 020 7317 7311 or email, info@chapelgateprivatefinance.com

How does income protection provide you with some peace of mind if the unexpected happens?

With the rise in the cost of living and borrowing, many people are worried about paying the bills if anything happens that could leave them unable to work. Recent surveys have shown that the average UK family doesn’t have enough in savings to be financially secure for long if they’re no longer receiving an income.

What is income protection?

Income protection insurance pays out a percentage of your monthly income if you are unable to work due to illness, an accident or disability. It gives you a buffer between finding yourself without an income, paying the bills and protecting your family’s security. Building an emergency fund for yourself is a good start to give you some financial backup, but income protection insurance can provide additional peace of mind.

How does income protection work?

Income protection is an insurance policy, so you pay a monthly or annual premium for it like any other type of insurance.
If you can’t work because of sickness, disability or other reasons (depending on your policy criteria), you’ll receive a regular income until you either return to paid work, retire, pass away or the policy term comes to an end. Policies can also be set up to pay benefits for shorter terms (1, 2 or 5 years), which could be cheaper. Income protection is different to life insurance or critical illness cover, both of which do not pay regular amounts but instead give you one-off lump sums in the event of your death or the diagnosis of a critical illness. That’s why it’s important to get advice if you are thinking about getting coverage.

“It’s important to get advice if you are thinking about getting coverage.”
Have you thought about later life planning?

Meeting the costs of care for elderly parents and yourself when the time comes is important to plan for. Your financial adviser can help you explore options that could work for you.

These could include:

• Releasing equity from your property
• Establishing an investment portfolio or building on an existing one
• Downsizing your home
• Lifetime care insurance if you’re over 60.

“Your adviser can help you choose the income protection policy that suits your needs.”

Did you know?

The max income protection benefit any provider offers is approximately 60% of gross pre-disability income. Premiums cost more if the waiting period is shorter and the percentage of your income is larger.

• Income protection can give you some financial resilience, especially as statutory sick pay is only £109.40 per week (at November 2023), and may only be paid for 28 weeks.

• Your adviser can help you choose the income protection policy that suits your needs, weighing up how much your premiums might be with the amount of coverage you’re after.

Get in touch

An adviser can help you figure out the right way to protect your income.

Please get in touch to arrange a time to chat, telephone 020 7317 7311 or email, info@chapelgateprivatefinance.com

A growing trend
According to data published by The Telegraph, close to half a million people have taken out private medical insurance over the past year, as NHS waiting lists hit record levels this autumn. According to government statistics almost 7.8 million people were waiting to start routine hospital treatment in September 2023.

Against this backdrop, it’s hardly a surprise that more people than ever are considering the benefits of private medical insurance including faster access to medical treatment for themselves and their families.

It’s not just speed of access, it’s also about the quality of care you receive, the flexibility of choosing where and when you would like to receive treatment, and the range of treatments, medicines, facilities and consultants available to you. Cost-restrictions in an already stretched NHS mean that not all breakthrough treatments are accessible. With private medical insurance you can sleep easy, safe in the knowledge that the very best care is available.

It’s more affordable than you think 
Avoiding lengthy waits for treatment and quality of care are just two of the biggest attractions of taking a route which has traditionally been seen as too expensive for most. But through our specially selected health insurance partner we can help you find the right policy for your budget. If you already have private medical insurance, we may be able to find you cheaper premiums for your circumstances, and all with a free no obligation quote.

The pandemic provided a reminder to us all of just how precious good health is – and acted as a reset for many. Health became a priority, and continues to be so. Spending money on private medical insurance may not have previously been a priority but protecting you and your family over the long-term means a growing number of people are taking the time to consider a more proactive approach to getting the treatment they may need.

We love our NHS but we know the pressure it’s under
We have nothing but respect for the hard-working and talented individuals who make the NHS what it is. But we also know that the service that has given so much to so many is under unprecedented pressure. We also know that there is often a faster and better alternative.

We can make sure you get all the information you need to decide whether private health insurance is the right option for you.

Call us on 020 7317 3177 or drop us an email, info@chapelgateprivatefinance.com

If you’re a homeowner, your mortgage payments are likely to take up a large part of your income each month.

You’ve made sure that your loved-ones will have financial protection to cover the mortgage you leave behind if you were to die with life insurance but what about if you became seriously ill or injured, and unable to work? Would you be able to keep up your mortgage repayments?

Statistically, you’re much more likely to be diagnosed with a critical illness than die during your working life. For example, a man aged 40 is 4.1 times more likely to be diagnosed with a critical illness than die before retiring at 65 years old.

As buying a home is likely to be your biggest investment, it pays to protect yourself, so you’re covered should you die as well as if you become too ill to work.

We know the little things in life can be life-changing. It could be a phone call from the doctor with serious news about your health, or a stepladder that wobbled once too often when you were standing on it – serious illness and injury can happen when we’re least expecting it.

How would you pay your mortgage if you were too ill to work?

There are different types of insurance available which can provide financial protection. These include income protection which provides a monthly income if you’re too ill to work and critical illness which pays out a tax-free lump sum if you’re diagnosed with a specific serious illness or injury.

It will be a huge relief to you and your loved-ones to know that you will still be able to pay your mortgage and other essential bills if you are too ill to work, leaving you to focus on what’s important – getting better.

Here’s one little thing you can do to protect your financial future, so get in touch with an adviser from Chapelgate Private Finance today

Your different options can be discussed with your adviser – so you can make sure you have the right protection in place for you and your family.

Call Georgina Payne on 020 7317 7311 or drop them an email on georgina@chapelgateprivatefinance.com

This is especially true when it comes to ensuring your personal finances are protected from the rainiest of days. However, with the rising cost of living likely putting pressure on your spending, you may be considering cancelling your cover, even when this could leave you more vulnerable than before. Read on to discover some of the reasons you should consider prioritising your financial protection over other cost of living worries.

Rising costs should highlight the necessity of financial protection
A recent survey by Which? has revealed that 65% of households have resorted to cutting back on essentials, selling items, or dipping into savings to pay their rapidly rising bills.

Financial protection products such as life insurance, income protection, and critical illness cover are sometimes the first things that people decide to cancel when things are tight.

However, without financial protection, one unexpected event or serious illness could plunge you into having to deal with a crisis with no financial support in place.

Life insurance means your family will not face financial hardship
Keeping your life insurance policy can ensure your family benefit from financial support if the worst happens.

Without protection in place, your family could perhaps no longer afford their regular outgoings, leaving them in a difficult financial position at what will already be a stressful time.

Cancelling your policy could jeopardise the financial security of your loved ones.

If you’re the main breadwinner, without your contribution to the household, your family may struggle to meet their regular financial commitments.

Income protection could support you while you’re unable to work
Injury, illness, or an accident could prevent you from working and earning your living at any time, making it hard to meet everyday expenses.

Even if you receive Statutory Sick Pay (SSP), paid at £99.35 a week in 2022/23, it may not be enough to cover your usual expenses and could force you (and your family) to adapt your lifestyle while you recover. Moreover, if you’re self-employed, you aren’t eligible for SSP.

Income protection could save you from such stress. If illness or injury prevent you from working, you can expect to receive up to around 60% of your wages.

Just as important as a payout, an income protection plan could give you access to rehabilitation services that grant you the ability to work again. As an example, 78% of Aviva customers who had rehabilitation support returned to work.

You could receive cover during a critical illness
If you cancel your critical illness cover to save money, you could find yourself out of pocket if you’re diagnosed with a serious condition. You may have to take an extended period off work on a significantly reduced income.

Critical illness provides a lump sum if you are diagnosed with a specified illness such as the following: Heart attack / Stroke / Cancer / Multiple sclerosis
Conditions may vary between providers.

While it’s unpleasant to think about, you should consider your own circumstances and whether you might be vulnerable if you cancel.

Having protection to offset unexpected healthcare expenses could be essential to preserving your financial wellbeing.

You may not feel you need insurance in all the areas discussed here. For example, some employee benefit packages include life insurance, so it’s worth checking to see if this is something you already have through your work.

The type and level of protection that is most suited to you will depend on your circumstances. We can help you decide what would provide you and your family with the most benefit and help you understand which policy is right for you, too.

Potential consequences
If you cancel your protection now with the intention of taking out cover again when your finances permit, you may find the premiums are significantly higher – especially if your health has deteriorated since you took out your original protection. You may also find there are exclusions based on pre-existing conditions.

The short-term savings often may not be worth the potential long-term vulnerability you cause yourself.

Your pension could be your “secret weapon” of protection
According to Pensions Age, 86% of savers are not on track to achieve their retirement expectations.

This serves as a caution that foregoing pension contributions could leave you short when it comes to your retirement funds.

So, pausing or cancelling your contributions now could have a negative effect on the size of your pension pot when you come to retire. This may leave you having to compromise on your later-life plans.

Discussing your pension with us could help to prevent overspending or under budgeting that may affect the funds you’d like use for your retirement.

Get In Touch
We can help to assess your financial wellbeing and assist in finding the right protection for you. This can help to safeguard your finances when confronted with unexpected circumstances. Please get in touch to discuss your needs.

Life insurance plans typically have no cash in value at any time and cover will cease at the end of the term.
If premiums stop, then cover will lapse.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028).
The tax implications of pension withdrawals will be based on your individual circumstances.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Tax concessions are not guaranteed and may change in the future.
Tax free means the investor pays no tax.

If you’ve just moved home or are about to, it probably feels like you’ve been caught up in a bit of a whirlwind over the past few months. With searching for a property during a pandemic, making the move before the stamp duty holiday ends and potentially getting caught up in the resulting conveyancing backlog, protection policies are probably not top of your priority list.

Yet it’s important to take the necessary precautions to ensure your new home and possessions are looked after – now more than ever. Here are some of the main types of protection you should be thinking about.

Mortgage protection

If you’re unable to work due to illness or injury or because you’ve lost your job, mortgage payment protection will cover the cost of your mortgage each month. These policies usually last for a year or until you return to work – whichever is soonest.

You can pick how much you want your policy to pay out each month, and this can include a buffer for other expenses, such as bills. It’s important to bear in mind though that providers usually set monthly limits of between £1,500 and £2,000. You won’t always be able to claim straight away, and there’s usually a waiting period of one or two months. The cost of mortgage protection will depend on:

your salary;
the size of your mortgage repayments;
the type of policy you choose; and
how soon you want to be covered.
Income protection
Income protection provides you with a regular income if you are unable to work due to illness or injury. There’s usually a minimum wait of four weeks before you can start receiving payments.

Buildings insurance

If you’ve got a mortgage, you’re likely to have buildings insurance to cover the cost of repairing damage or rebuilding the structure of your home if it’s damaged. But have you looked carefully through the policy and made sure that it definitely covers everything you need it to? Once you’ve moved, you may realise that your new home has a slightly more complex structure than you first realised, and it’s important to make sure your buildings insurance takes this into account. If you’re lucky enough to not have a mortgage, it’s still a sensible idea to invest in this type of insurance for peace of mind.

Contents insurance

If you’ve bought new furniture and gadgets for your home, you might need to review your contents insurance. This type of insurance covers the cost of replacing possessions in your home if they’re stolen, destroyed or damaged. It’s a good idea to double check which of your items are covered so that you’re not caught out if something does go wrong.

Act now

When you’re caught up in the excitement of moving, thinking about protection might be the last thing on your mind. But remember that your circumstances can change quickly and it’s important to make sure you’re prepared now in case things don’t go to plan in the future. For more information about protection and to talk about whether your current policies are right for your situation, contact us now, info@chapelgateprivatefinance.com or telephone, 020 7317 7311.

Whether we’re crossing the road or getting on a plane, we encounter risks every day. For many of us, life has felt more uncertain than ever over the past year as we continue to deal with the coronavirus pandemic. Although we can’t always control what’s happening in our lives, we can plan for the unexpected.

By taking out a protection policy, you can safeguard your family’s finances if your situation changes. The main types of protection include:

Life cover – pays out a lump sum if you die
Health insurance – pays medical costs at a private hospital or private ward
Critical illness – pays a tax-free lump sum if you’re diagnosed with a major illness
Home contents and buildings – covers your home’s structure (including fixtures and fittings) and contents (furniture)
Income – pays out if you can’t work due to illness or injury

As well as peace of mind, protection policies often come with added extras. We’ve highlighted examples of some of the perks you could receive when you take out a policy, even if you don’t make a claim.

Welcome gifts

When you sign up for a protection policy, some providers offer a welcome gift. For example, health insurers sometimes offer gadgets like an Apple Watch to help you track your activity – with some even offering a discount based on the amount of exercise you do each month.

Discounts

Many health insurers offer discounts on gym memberships and weight-loss programmes to help you embrace a healthier lifestyle. Some also offer you the option of taking a health check to reduce the amount you pay each month.

It’s worth noting that when you take out a protection policy, your provider is likely to offer you discounts on other products such as pet or travel insurance.

Additional healthcare options

Some health insurers now cover complementary therapies such as osteopathy and acupuncture, giving you more treatment choices. In addition, counselling services are now included in most health insurance policies and many also give you the option to upgrade your hospital room if you need treatment.

Will writing

Some providers of life insurance give new policyholders the opportunity to draw up a will free of charge.

Cover for children

Many critical illness plans include free cover for dependent children.

What support do insurers offer after the event?

Illness and bereavement help. Many providers give free access to services offering practical and emotional support for those left behind after the death of the policyholder.

Rehabilitation

Insurers usually offer back-to-work support services, including physiotherapy, careers guidance or advice if you choose to go self- employed. If you’re returning to work following a mental health issue, providers will continue to cover counselling sessions for a set period of time.

Whatever type of protection you’re looking for, get in touch and we can help!

Underinsured
If you don’t regularly review and update your policy, any pay-out you do receive from your claim may not be enough to cover you and your family’s needs if you were to die or if you are unable to work due to illness.

Say you took out a life insurance policy covering you for a certain amount. After several years, you may have children, resulting in a move to a larger house. If you take a larger mortgage; your monthly outgoings would increase, and you would have bigger bills to pay. Therefore, the lump sum paid out to your family upon your death would no longer be sufficient to sustain their lifestyle and might leave them facing financial hardship.

New policies offer better protection
Like any industry, the insurance industry has evolved over time. Modern policies can offer you better protection and more extensive cover.

When comparing a critical illness policy sold in 2007 with one sold in 2017, the more modern policy may have better claims wording, provision for part-payment and other advantages.

If you have simply been paying your premiums on the same policy for years, it is likely that, as well as facing the risk of being underinsured, you also won’t be benefiting from the kind of comprehensive cover offered by today’s policies.

Let us protect you
With so many different types of protection insurance on the market, it’s not surprising that many people just stick with the cover they have.

It may not be the best cover for them. We can assist you in finding the very best policies for your circumstances, so you have the peace of mind that you, and your family, will be protected should the worst happen.

Please note: Older policies may cover illnesses which modern policies do not. Premiums may be cheaper due to the age of the policy. Certain cover may be excluded on a new policy due to pre-existing conditions.

Always get professional advice when reviewing your insurance policies.

As with all insurance policies, conditions and exclusions will apply