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UK Life Insurance Information

Guide ___________________Quotes

Like many personal finance "products" there are different names for what are essentially the same thing.

The following list refers to the most common terms for personal insurance.

Click on the links to access the guide to each subject.

Life Insurance

Critical Illness Insurance

Long Term Income Protection

Mortgage Payment Protection Insurance
AKA Accident, Sickness and Unemployment

Mortgage / Life Protection

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Long Term Income Protection
aka Permanent Health Insurance

What is it?

Why bother

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What is it?

(This is NOT Private Medical Insurance)

Long Term Income Protection is a type of insurance policy that pays you a percentage of your income if you become unable to work due to ill health.

The policy would usually make the payout last until you were due to retire - when your pension should kick in.

The payout is usually made regardless of the causes of the ill health.


Why you need it?

If you became too ill to work how would your standard of living be affected? What would happen to your mortgage payments?

Not the state. That's for sure. State disability benefits are about 60 a week.

You normally get 50% to 60% of your income from a Long Term Income Protection / Permenant Health policy. (This should be inflation proof.

Your employer might have you covered but you'd need to check exactly what it is.

Regardless of how highly you're thought of, it's very unusual to be paid for more than 6 months after someone's stopped working because of ill health.



Buying Tips

Watch out for...

  • The exact definition of what your being unable to work means used by the insurer.

    Look out for the phrase "own occupation". This means the insurer can't claim that you may have been a pilot but, now that you can't do that , you could work from home licking envelopes for some dodgy company, so they won't pay up...

    If you see "own OR ANY occupation" be careful. Any occupation means you'll have to lick the envelopes...

  • Avoid policies that can increase the payments as you get older, for example when the insurer starts thinking you may be more likely to make a claim...

    Don't trust them if they say "we would never, ever do that"... You can guarantee that they will if it saves them 50p.




    Want a quote now?

    There are hundreds of insurance brokers out there waiting to give you a quote for Permanent Health / Income Protection.

    The problem is they vary greatly in price and quality. The best thing is to have one recommended by word of mouth.

    If you can't find one that way, we've had a careful look around and have identified the ones we believe offer the best value.

    Go to the best quote