Protection

Why Threshold?

Cover available to protect your mortgage, lifestyle and home

Repay your mortgage in the event of dying or being diagnosed with a critical illness

Ensure your family won’t lose their home should you die or become ill

Guarantee your income through to retirement even if you suffer an accident or illness

If you have a joint financial commitment cover can be tailored to protect one another

Maintain your independence in the event of illness

Client Profiles

Frequently Asked Protection Questions

Why do I need a protection plan?

Many people would quickly be unable to meet their monthly financial commitments in the event earned income ceased. Protection policies provide a ‘Plan B’ to ensure that you can continue to fund your lifestyle, and meet your financial commitments (such as mortgage & loans payments). Failure to do so could lead to financial difficulties and in time, bad credit or even home repossession.

What types of protection policies are available?

These predominantly protect against death, critical illness, and loss of income through accident or sickness. Whilst ideally we should have all three areas covered with protection plans, cost may require individuals to focus on addressing their greatest need(s). Where cost is a limiting factor, it is worth exploring the cost of protection at a lower level ‑ it is better to have some cover than none.

Can the self employed take protection plans?

Absolutely. In fact it is potentially more important for the self employed to make their own arrangements as there will be no employer benefits available (such as sick pay or death in service).

Why is critical illness more expensive than life cover?

There is a significantly greater risk of contracting a critical illness than dying prior to retirement. Consequently insurance companies charge more for critical illness plans as there is a greater likelihood of a successful claim being made.

What protection plan is best?

Whilst ideally everyone would have an element of life cover, critical illness and income protection, most will target the area of greatest concern based on their individual circumstances. To help identify the areas of greatest need, we can provide you with a free risk report to highlight statistically the chances death, critical illness or loss of income due to sickness or accident before retirement (based on age, sex and smoker status).

I’m single ‑ do I need protection?

Whilst you may not need life cover, it is important to consider how you will meet your monthly financial commitments if you were unable to work ‑ especially if you are the only earner in the household. Critical illness and Income Protection should be explored further to protect your lifestyle in the event you are unable to work through sickness or accident.

Many people do not have an emergency fund to fall back on in the event of something unfortunate happening which is beyond their control. If you were unable to work, how long would you be able to continue paying your mortgage and other bills?

Protection policies are designed to ensure a personal catastrophe (death, loss of income etc) doesn’t cause a financial crisis.

The most common types of protection plans are listed below with a high level description:

Life Cover

Most commonly taken in connection with a mortgage to ensure in the event of death of a borrower, the mortgage can be repaid. This is especially important where the household income is reliant upon one person’s income, and the death of that person would result financial hardship and potentially the forced sale of the family home.

Income Protection

These policies provide an income should you be unable to work due to sickness or accident. They can be constructed to compliment your employers sick pay arrangements (if any) to ensure you are only paying for cover you need.

Critical Illness Cover

Again most commonly taken in connection with mortgage borrowing and will pay out upon suffering a critical illness (as defined by the product key features).

Family Income Benefit

A form of life cover, but with the benefit being paid to the stated beneficiaries as a monthly payment (rather than lump sum) until the end of the policy term, which is often set to when the youngest child is 21.

As with all of the policies mentioned in this section, there are a variety of options available to tailor the cover to your needs. Whilst ideally you should have protection arrangements in place to guard against death, critical illness, sickness or accident, It is important to note that having some cover is better than none. So if cost is an issue, we can work with you to put reduced protection arrangements in place to focus on your greatest concerns, and to fit within your budget.

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