The Coronavirus (Covid-19) pandemic has had a profound impact on everyday life across the globe. For months we sat back, watching Governments around the world struggle with the decision of how and when to lift lockdown measures, when businesses would re-open and how to protect the people who may have lost their jobs, due to the pandemic. Not forgetting those Thursday evenings we all spent clapping, for every single person working on the frontline.
Flash forward to now, lockdown measures are easing, we are heading back to work and slowly grasping and gaining a better understanding into what is going to be the ‘new normal’. Many of us are still concerned with what’s going to happen over the coming months or even years, and worries surrounding our financial wellbeing continue to linger in our minds. Now is the best time to consider what’s best for you and your loved ones going forward.
Has Coronavirus impacted insurance premiums?
A common misconception that came with this pandemic was that insurance premiums for protection were going to become outrageously expensive, but you’ll be glad to know that this isn’t the case. As of the time when this article was written, there have been no major changes to the cost of premiums for life insurance, critical illness covers and income protection due to the coronavirus.
However, like everything else there were some restrictions in place around the amount of cover you could apply for. This was due to social distancing measures, as personal medical screenings were unable to take place. The good news is that this is now changing, as insurance providers across the board reintroduce in-person medical screenings and cover restrictions are being lifted.
Why is life protection important in regards to Covid-19 & the Coronavirus?
Source: Statista – Cumulative number of coronavirus cases in the UK since January 2020 (as of July 2020)
As of July 13th, there are over 290,000 cases of Coronavirus confirmed in the UK according to Gov.uk. Despite this growing figure, many young people still consider themselves to be reasonably healthy and disregard the support protection policies can provide. But the reality is, viruses and diseases like Covid-19 do not care what age or how fit and healthy you are. Now more than over in post Covid-19 life, protection is important as you never know what’s going to happen down the line.
Back in April, our Head of Protection Andrew Donnelly had a Zoom call with representatives from protection providers Guardian, LV and Vitality to discuss the impact on your life insurance and other policies during the Covid-19 pandemic. Watch it below
What type of protection is available to me?
Here at Super Contractions, we specialise in financial protection for you and your family. It’s important to know what types of life protection are available to keep you financially protected, and our video below explains all.
Your back up plan. In the event of your death, life cover will step in and guards your home and the people in your life by financially protecting them. This is the type of insurance policy that will help to minimise the financial impact your death could have on your loved ones. For example, if you die or are diagnosed with a life expectancy of less than 12 months, a cash lump sum will be paid out. Life insurance is not for you, it’s for your loved ones.
Pays you a regular income to cover your outgoings if you can’t work due to disability or sickness and will continue until you return to work or until you retire. Many know income protection to be permanent health insurance. Not only does it protect you, but it also protects your loved ones.
Designed to ensure you and your family are financially protected if you are battling a critical illness described in your policy which can be conditions such as cancer, strokes or heart attacks. With Critical Illness Cover, you will be provided with a lump some of money to spend on things like everyday expenses, paying off your mortgage or your medical bills. Do you need more information? Read more about Income Protection Insurance and Critical Illness Cover with Citizens Advice.
No one is immune from illness and having private health insurance will ease the burden of the potential cost of medical care for you and your family. If you opt for private medical insurance you can avoid NHS waiting lists, gain access to specialist doctors and consultants and it covers the cost of private healthcare.
What determines the cost of protection?
If you are considering any type of financial protection, it’s important to know that there is no one-size-fits-all, monthly premiums you will need to pay will depend on your lifestyle, income, and family circumstances. For example, someone in their 30s with a house and children will not have the same requirements as someone in there 30s with no mortgage and no children. Therefore, it is hard to determine the cost without knowing specific details which is why you need to speak to an expert.
Factors impacting the cost of protection are:
• Age when you start the policy
• Are you a smoker or non-smoker?
• Lifestyle factors
• Your health including family history
• Your occupation
• Whether or not you have existing cover
How can I manage my protection costs?
There are ways you can influence and reduce the cost of your cover if you’re worried about monthly outgoings. Many providers will offer budget friendly options, which are over a shorter period rather than 25-35 years. Insurers may also offer low start premiums that will gradually increase over the term of the policy. If you have any concerns regarding the cost of cover, get in touch with us today and we will help find you the best option to suit your monthly budget and will make sure the cover is suitable for your needs. Freephone 0800 211 8700 or fill in our contact enquiry form.
Lifetime Finance Group Limited trading as Super Contractors is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.