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, Keegan & Pennykid (Insurance Brokers) Ltd have the knowledge and experience to advise you on the options available.

For information on specific protection products, please choose a subject from the list below. Choose:

• Term Assurance
• Decreasing Term Assurance
• Increasing (or Escalating) Term Assurance
• Family Income Benefit
• Mortgage Protection
• Permanent Health Insurance
• Group Life
• Group Permanent Health
• Key Person Assurance
• Whole of Life
• Long-term Care
• IHT Planning

Should you wish to discuss your protection needs then please contact us.

Term Assurance

Term assurance pays a lump sum on the death of the life assured, if death occurs within the term of the policy. If the life assured survives to the end of the policy term, the policy lapses without any maturity payment being made.

Term assurance, therefore has no surrender value at any time.

Decreasing Term Assurance

This type of term assurance policy is designed specifically for use in conjunction with repayment of a loan. As the amount of the loan reduces, so does the level of cover under the decreasing term policy. Although the level of cover reduces over time, premiums remain constant. The most common use of this type of life assurance is to accompany a repayment mortgage (known as mortgage protection assurance).

Increasing (or Escalating) Term Assurance

This product is similar to level term assurance except that the sum paid out will increase over the term of the policy, either by a fixed amount per year or in line with inflation. This means that the benefit paid out keeps its real value.

Family Income Benefit

This is a form of decreasing term assurance, with the death benefit being paid as an income from the date of death to the end of the policy term. The longer the life assured survives, the fewer the number of years that the insurer will have to pay the income benefit.

Mortgage Protection

A Mortgage Protection Plan is a Decreasing Term Assurance contract, which provides cover for you in the event of death during a specified policy term. As the amount of the loan reduces, so does the level of cover under the decreasing term policy. Although the level of cover reduces over time, premiums remain constant.

Permanent Health Insurance

Permanent Health Insurance (PHI), also known as "Income Protection Insurance (IPI)" is designed to replace a substantial portion of lost income for an individual who is unable to work, due to illness or accident, for more than a specified period of time.

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).

Group Life

Group Life forms the life insurance portion of an employee benefits package. It enables employers, to provide generous, support for the dependants of a deceased employee. As well as encouraging staff loyalty and demonstrating a genuine care for staff welfare, Group Life insurance goes some way to reassuring employees that their efforts in the workplace really count. The cost of providing these benefits is dependent upon a number of factors including the age profile and gender split of the workforce, type of organisation, occupations, geographic location, past claims experience and the level of benefit to be provided, which can be up to four times salary.

Group Permanent Health

This benefit is designed to allow part of an individual's salary to continue in the event of them becoming unable to work due to a long-term illness or injury.

A waiting period of either 4,12,26,52 or 104 weeks can be chosen before the benefit is paid. The waiting period will normally tie in with an employee contract of employment as this confirms the length of time they receive full pay for. The longer the waiting period, the lower the premium for the cover.

The benefit would continue until the individual returned to work or to age 65. The illness or injury must prevent the individual continuing his or her own occupation.

Key Person Assurance

For the policy to be effected, there must be a financial loss that will arise to the grantee on the death of the key Person.

The level of keyperson cover should be determined by assessing the extent of the potential financial loss to the company on the death of the key Person. In this context a life office underwriting the risk will usually be concerned that the level of cover effected is roughly commensurate with the financial loss that would be suffered and that there is no over-insurance. This aspect of assessing the extent of the financial risk is known as "financial underwriting".

If you require assistance in calculating how much cover you require, or indeed wish to know the cost of providing this type of cover for a key employee then please contact us either by phone, fax or email.

Whole of Life

Whole of Life Assurance policies pay the sum assured on the death of the life assured, whenever that may occur. Because a payment is certain to be made under this type of policy, cover is usually more expensive than under a Term Assurance policy.

Long-term Care

Long-term care is the situation whereby a person is unable to look after himself or herself. This means that help is needed from another person to care for them.

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.

IHT Planning

A tax payable on the death of an individual, calculated on the value of the individual's estate at death and on certain lifetime gifts made in the seven years prior to death. Certain exemptions and allowances apply to this tax liability.