I want to protect my income and my family, where do I start?

No one wants to think anything unpleasant may happen to them or their loved ones. But the unexpected can be easier to cope with if you are prepared. Ask Acorn offers many ways to insure against misfortunes such as illness, death, accidents, a stay in hospital or a loss of your income. An Ask Acorn financial advisor will outline the many ways you can protect what’s important to you.

Why do I need life cover?

Life cover is very important if you have anyone, such as a spouse, children or parents, who depends on your income. If you die, life cover pays a tax-free lump sum that can help your loved ones remain financially secure. With this, they could remain in the family home, maintain their standard of living and meet future costs such as college fees. Life cover gives you the peace of mind of knowing your family’s financial well-being is protected, even if the worst happens to you. An Ask Acorn financial advisor can give you guidance with a no-charge, no-obligation consultation.

How much life cover do I need?

Everyone’s needs are different. So only you can decide how much life cover you need. However, an Ask Acorn financial advisor can help. Together, you can look at factors such as who depends on your income, your current outgoings (e.g., mortgage payments, education and healthcare costs), your average annual utility bills, etc. If you die, a life policy will usually pay a lump sum. To safeguard your family home, this needs to be large enough to cover the outstanding balance on your mortgage. If possible, it should also help cover your loved ones’ living expenses if they can’t earn an income to replace yours. Also, you should consider any savings and other assets that you will leave in your will. After you’ve decided how much life cover you need, you should review this regularly. Your personal circumstances will change and prices will rise. So it’s important to ensure you have enough life cover to keep your family financially secure.

Can I change my level of cover?

Your needs will change as time passes. That’s why most life policies let you alter the amount of cover you hold. Knowing this, it makes sense to review your cover regularly with an Ask Acorn financial advisor to make sure it’s still suitable for your current needs and circumstances.

What is the difference between term life and whole of life cover?

As its name suggests, term life cover refers to a specific period such as 10, 20, or 30 years during which you generally pay a fixed premium. If you die during this time, it will pay a benefit. Another feature of term life cover is that its cash value doesn’t grow. For these reasons, term life cover is generally more affordable than whole of life cover. If you have whole of life cover, you are covered for your entire life as long as you keep paying premiums. As whole of life policies include an investment or savings element, their cash value can grow. This amount would also be paid to your loved ones if you died. Choosing either term life or whole of life cover is an important decision. So before making it, you should review your current financial situation, plus your financial plans for the future with an Ask Acorn financial advisor.

Can I have more than one life insurance policy?

Yes, you can be covered by more than one life insurance policy. For example, you could be covered by a policy taken out by your employer while also having one or more policies of your own. Why would you have more than one life policy? One reason might be that you want different people to benefit from different policies. However, you would need to be sure that you can afford multiple premiums. If you discuss your personal situation and needs with an Ask Acorn financial advisor, you can check how much life cover you need and can afford.

What is the difference between income protection and critical illness cover?

Income protection cover pays you an income if your current income stops. This would give you the peace of mind of knowing you could still cover mortgage payments and household expenses, even without your usual salary or wage. Critical illness cover can also offer you peace of mind. It does so by paying you a tax-free lump sum if you are diagnosed with one or more illnesses specified by your policy. Critical illness policies are very precise about what they cover. So you should make sure you understand exactly what is covered and whether a policy would meet your needs. To check this, you should meet with an Ask Acorn financial advisor who will explain exactly what income protection cover and critical illness cover can offer you.

What is business protection?

If you run a business, you know all about the risks it faces: new competitors, economic downturns and rising costs among many others. Business protection cover is designed to protect against specific risks that would affect your ability to trade. Two of the most valuable types of cover are key person cover and partnership insurance. Key person cover would pay your business a lump sum to help overcome any losses if an essential person died or couldn’t work due to illness. Partnership insurance offers a lump sum to cover the cost of purchasing a deceased partner’s share of the business. By talking to an Ask Acorn financial advisor, you can learn more about how key person cover and partnership insurance can help protect your business.

How can I find the best protection policy for me?

Protection policies can be complex and your financial needs, goals and personal circumstances are completely individual to you. That’s why it makes so much sense to discuss everything with an Ask Acorn financial advisor. Together, you can identify the cover that will give you and your loved ones peace of mind and help you face the future with confidence.