Don’t let myths and misconceptions stand between you and the security you want for your home and family. Let’s bust some common myths about protection insurance, whether it’s for you, your family, or your mortgage.
Myth 1: Protection insurance rarely pays out
Protection insurance payouts are very common, and it’s rare for a claim to not be accepted. In fact, according to the Association of British Insurers, 98%1 of all claims were accepted in 2022, which is a figure that has remained consistent.
Declines in claims are often because customers didn’t disclose key information about themselves or their circumstances when they took the policy out.
In total, £6.85 billion was paid out by both group and individual protection policies, which is a significant amount of support going to individuals struggling with bereavement, illness, and injury.
Myth 2: Mortgage protection insurance is only for older individuals
The reality is, protection insurance is for everyone, of every age and background. Whether it’s life insurance, critical illness cover, or income protection, it’s important for people of all ages.
It can provide financial security for both individuals and families in the case of unexpected events.
Myth 3: Mortgage protection insurance is too expensive
The cost of protection insurance can vary depending on the type of coverage, the length of coverage, as well as your age and health. It’s important to remember that there are often affordable options available and insurance may be lower when you’re younger.
Check out our article which breaks down what factors play into the cost of your insurance.
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Myth 4: You don’t need insurance if you have savings
While having savings is important, protection insurance serves a different purpose. Whether it’s mortgage protection insurance or life insurance, it provides a financial safety net in the case of unforeseen events. Not only will this deplete your savings, you may not have enough in your rainy day fund to adequately cover your needs.
Myth 5: You can’t get insurance if you have a pre-existing medical condition
While having a pre-existing medical condition may affect your eligibility and premiums, it doesn't mean you can’t get insurance. There are specialist protection providers out there who can cover individuals with pre-existing medical conditions, with some policies covering certain conditions after a predetermined waiting period.
Myth 6: Protection insurance only pays out for death
Different types of protection insurance will have different payout triggers, and death is not always the main trigger point.
For example, critical illness insurance pays out when someone is diagnosed with a specified critical illness. Income protection provides ongoing payments if you’re unable to work because of illness or injury.
Myth 7: Protection insurance is a one-size-fits-all-solution
There are tons of protection plans and insurance types out there and the right coverage depends on your individual circumstances and needs. It is vital that you work with a specialist protection adviser who can help assess your individual needs and circumstances.
Using this information, they can help determine what is going to best suit your lifestyle and financial requirements should the worst happen.
We have a host of specialist protection advisers on hand to help you work out what kind of protection you need for your family and lifestyle. Get in touch with us today and let’s discuss your options!
Important information
For insurance business we offer products from a choice of insurers.
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