Protection policies cover a variety of client requirements from Life Cover, payable on death during a specified term, Income Protection for cover in respect of loss of income due to accident or sickness to Long Term Care that can pay for Nursing Home Fees.
These types of policy cover specific needs so it is very important to know that the policy you have in place will do what you require it to do.
Whatever your protection requirements are either as an individual or on behalf of an employer, or if you are not sure of the type of cover you require, we have the knowledge and experience to advise you of the options available.
You can find below brief details of the most common protection products.
It is frequently associated with the inability of a person to undertake certain “Activities of Daily Living”,
These include: –
- Feeding; the ability to eat when food has been prepared and served.
- Mobility; the ability to move from room to room in a home.
- Dressing; the ability to put on and take off clothes.
- Toileting; the ability to get on and off the toilet or commode unaided.
- Washing; the ability to keep clean.
- Continence; bowel and bladder control to maintain personal hygiene.
The need for care may also mean that a person could need disability aids such as a wheel chair or special equipment to assist in getting in and out of the bath or up and down the stairs.
The concept of Long Term Care (LTC) is to pay out regular income (or in rare cases a lump sum) to either an individual or an officially recognised provider of care, once the insured is unable to perform a specified number of ADL’s (activities of daily living).
The inability of a person to care for himself or herself is measured by the policyholder´s inability to perform some of the “Activities of Daily Living”. Payments under the policy will usually be made after the policyholder has become unable to perform a set number of “Activities of Daily Living” for three months or more and the disability is not expected to improve.
The best (and most expensive) long term care plans will normally pay full benefits when the policyholder is unable to perform two or more “Activities of Daily Living” for three months and looks likely to continue to have to cope with that level of disability. However, as with private medical insurance, budget plans offering cheaper premiums are likely to set the test for benefit payments somewhat higher. Typically, the policyholder must be unable to perform three “Activities of Daily Living” for three months before payments begin, or he must have suffered mental cognitive impairment.
The benefits are tax-free and once they have started to be paid, they will continue until the life assured returns to work, dies, or until the expiry date of the policy (typically retirement age).
Term assurance, therefore has no surrender value at any time.
For further information or advice about Life Assurance & Protection , please contact us