Most insurance contracts are relatively simple to understand, in that they will pay out a certain sum assured if a claim is successful. The issues here are:
- Is the type of insurance suitable for this client’s needs?
- Is the sum assured sufficient to achieve the client’s goals?
- Are premiums affordable and are planned increases fully disclosed and understood by the client?
- Is the insurer financially sound and incorporated in a jurisdiction with adequate regulation?
- Does the insurance policy have protection in place from, for example, the Financial Services Compensation Scheme in the event that the insurer ceases trading?
Types of insurance that are covered are:
- Life insurance, including level term assurance, decreasing term assurance, gift inter-vivos policies, whole of life insurance and family income benefit plans.
- Critical illness policies, whether level term, decreasing term, whole-of-life or family income benefit (this type of benefit can sometimes be found with critical illness cover benefits, though this is rare).
- Income protection plans, including accidental death, mortgage protection or payment protection insurance.
- Annuities, though clearly there is significant crossover here with pensions.
If you have any questions about insurance, feel free to contact us. Please note that this is not an invitation to provide personal advice via Aegis Financial Consulting Ltd.