What is the difference between............?

Here at Proadvice our aim is to offer you a professional service with our team of protection specialists and customer support.  Proadvice is a company with an aim to offer great customer service, quality advice and affordable insurance. 

Proadvice will offer you quotes from the whole of the insurance market with full and impartial advice on the best products available with tailor made plans designed to suit you. With the Proadvice price guarantee, we promise we will not be beaten.

The wealth of experience our Proadvice specialist advisers possess enables them to explain and recommend the right products for you and therefore avoid any disappointment if the need for you or your family to claim did arise.

We make it our job to understand all of the policies inside out and understand the small print, so you can feel reassured and have complete peace of mind with your policy.

When buying insurance it is essential to find the right insurance company based on your health, hobbies, and your lifestyle as this will have a major effect on the final premium you will pay.

It is our job at Proadvice to find you the right insurance company with the very best cover for your individual circumstances and to also find you the most competitive rates in the marketplace today.

Here at Proadvice, we will not charge you a fee for the services we provide and can assist you on all elements of your personal protection needs, from life insurance to critical illness cover and income protection needs.

What’s the difference between advice and non-advice?

If you bought a kit car from Ferrari you are given two choices. You can take it to a garage to have it put together for you or you can do it yourself. Who do you anticipate would do a better job? 

Once built, you start driving and 100 meters down the road the car falls apart. Who do you blame?  Most people would agree it is the individual who put the car together that is to blame, not Ferrari. After all, there was nothing wrong with the Ferrari parts supplied.

Now with insurance it seems the general perception is that it is the insurance company who are to blame when things go wrong and the claim does not pay out and not the person who put the plan together. With insurance you are given two choices, these are; with advice or without advice. 

Choosing to take out a policy without advice, means it could be more likely that the plan does not  pay out perhaps, for example, because you had misunderstood some of the finer details or restrictions.  Similarly, the tax man might get some of your payout if the plan is not set up correctly.  Its easy to feel like blaming the insurance company but it might not be their fault. You may have heard of cases where someone has set up a plan themselves online without really knowing enough about what they are getting into.

By using an advice based broker like Proadvice, you know that your policy is the right policy for you. It is our job to ensure the plan does what you expect it to, and as authorised advisers we take this responsibility seriously. In the unlikely event you are dissatisfied with our advice we have a comprehensive complaints procedure. Most of the products we advise on are also covered by the Financial Services Compensation Scheme (FSCS), giving you additional levels of security. 

What is the difference between Terminal Illness Cover and Critical Illness Cover?

 

Terminal illness cover is free with all life insurance plans. Terminal illness cover will only pay out if you have been told that you are going to die within the next 12 months.  

Critical illness cover will cover typically between 30 and 50 conditions and will pay out on diagnosis of any of the listed conditions. Most people expect critical illness policies to include conditions such as some forms of heart attack, cancer or a stroke however with critical illness policies it might surprise people to see, there are many other conditions including Loss of Limbs, Paralysis and 3rd Degree Burns that are covered.

Just because you have suffered from a critical illness, it no longer necessarily means you are at risk of death. Our great grandparents would have been lucky to live beyond the age of 50 but now the average life expectancy is 78 years old for men and 82 years old for women.

In general, we are all living longer but some people seem to have attitudes that are stuck in the past when it comes to insurance and health issues, for example, historically if you were to suffer a heart attack, this would almost certainly mean a death sentence, however these days, thanks to medical research and advancements, more and more people are living through the condition and able to go back to their everyday lives.

We are no longer living in the past where our chances of survival after a serious setback were much more limited and therefore it is time to stop thinking in this waywhen it comes to critical illness cover. By taking out life insurance alone, you are doing the right thing by protecting your family if you are no longer here to do so but by taking out a life insurance policy without critical illness cover you are only covering yourself for half the potential eventualities.

By just taking out life insurance with no critical illness cover, if you were to fall ill, your family could suffer the same financial hardships you were looking to prevent and protect against by taking out your life insurance cover. You are up to seven times more likely to claim on a critical illness plan than you are to die during the term of your life insurance plan.

What is the difference between Income Protection and Critical Illness cover?

 

Critical Illness

Income Protection

Pays a tax free lump sum in the event of diagnosis of a specified critical illness

Provides a tax-free monthly payment in the event of you being off work due to an illness or incapacity

Most common claims are for cancer, heart attack and strokes

Most common claims are for injuries, bad backs and stress

A critical illness plan is designed to pay a lump sum to cover financial commitments such as paying for your mortgage or modifications to your home, or to help pay for private treatment

Income protection is designed to help cover your bills, mortgage or rent and general living costs every month, as if you are still being paid monthly by your work

Critical illness cover pays out on diagnosis of a specified condition as per the definitions of your plan. The plan would pay out after the insurers survival period

Income protection pays out after the deferred period of your plan is up. This can range from 0 days, 1 week, 30 days, 13 weeks, 6 months and 1 or 2 years

After claiming on a critical illness plan the cover will normally end unless you have selected the buyback option when you took out the plan

With income protection on your return to work your cover remains in place and you can even claim on the same condition again if the need arises

 

How does Income Protection (Permanent Health Insurance)differ from Accident, Sickness and Unemployment Cover?

Income protection and ASU plans are designed to pay out a monthly amount if you are unable to work due to an illness or injury. The plans will pay-out once the deferment period has expired. There may be these slight similarities with these two plans however there are also a number of big differences;

Income protection will replace part of your income (tax free), if you are unable to work for a long period of time due to illness or disability and will usually continue to pay out until you can return to some kind of paid work or reach retirement, whichever is sooner.

Income protection is a name given to several products, accident and sickness cover, permanent health insurance, redundancy and unemployment plans. The aim of these policies is to provide an income to you should you stop getting paid due to ill health of unemployment. It can cover everything from a cold or broken arm to more serious conditions such as a heart attack or cancer. The plans normally tops up any work benefits you may have such as sick pay. 

There are a number of choices you have to make when taking out income protection insurance. The key part of income protection is to ensure you are covered for your ‘Own Occupation.’ This means that whatever may prevent you from doing your own job means the policy will pay out. There are cheaper policies called ‘work occupation’ or ‘suited occupation.’ With these plans you may find yourself in a unique situation where you are too sick to work but not sick enough for a valid claim.  

The amount of income protection you need is also a personal choice yet it is generally limited to between 50 -70% of your annual salary. By law, you are only entitled to 28 weeks statutory sick pay at £87.55 a week.

An income protection plan allows you to choose a deferred period and if you are lucky enough to get sick pay through your employment, then to save money you would set your plan with a longer deferred period to tie in with when your sick pay ends. A typical example of someone that will benefit from sick pay through employment is a Nurse in the NHS who would get 6 months full pay and 6 months half pay. If you have no sick pay or are self-employed, the deferred period can be as soon as day 1, a week or a month, the choice would be yours.

You cannot make a claim on income protection while you are still getting sick pay from your employer. Please be aware that you cannot be in a better financial situation claiming on any insurance plan than you were while working. 

The biggest factor on the price you pay for Income Protection is the job that you do.  An office worker would typically pay less for a policy than a builder, even if they are the same age, have the same sum assured and the same deferred period. The reason for this is a builder is considered to be a higher risk occupation than an office worker.

Accident, Sickness and Unemployment (ASU) policies will also protect a person’s income against illness or injury. These plans are classed as general insurance plans.

The plan will only pay out for a maximum of 12 or 24 months depending on what term you opted for. When you claim on this plan, the plan then expires whereas with an income protection plan you are able to claim multiple times. 

What is the difference between Income Protection and Permanent Health Insurance?

Permanent Health Insurance (PHI) is a long term sickness plan that provides you with an income should the worst happen to you and you are unable to work long term. Income protection is a general term used for several products which offer long term sick, short term sick and even unemployment cover. There are plans called Income Protection which is the same as a Permanent Health Insurance plan just with a different name. The name of a plan will often vary from company to company. 

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