Protection policies for women

Protection policies for women – 48per cent of working women have no protection policy in place

Recent research has revealed the following –

  • A big gap between the number of working women supporting their families financially and the level of protection they have in place, should the worst happen.
  • That more than half of working women are their family’s main breadwinner but have ‘worrying low’ levels of financial protection
  • Almost half of all working women in the UK do not have any form of protection in place to cover their dependants if they became seriously injured or ill or passed away. This is despite 51 per cent being the main breadwinner in their family.
  • Without a protection policy in place, many women are putting themselves at risk of serious financial difficulties if something were to happen, a new report from insurer Aegon has claimed.

In a further survey 2,051 working women were asked about their financial situation – 

Of those

  • 51 per cent said they were the main breadwinner in their family
  • 46 per cent said it would be their sole responsibility to financially support their family should something happen
  • 48 per cent said they don’t have a protection policy in place and would instead use their partner’s income, savings or Government benefits if something happened.

Protection policies are designed to cover us in times of hardship and to make sure there is enough money available to cover costs such as mortgage repayments.

There are lots of difference policies available with life insurance, income protection and critical illness being the most well known.

protection policies for women

The research also showed that when choosing a new job, benefits such as life insurance & critical illness are an important factor –

  • 44 per cent of women said they had asked their employer what was available.
  • Around a third of those asked said the protection benefits included with their job were a key factor when deciding on whether to take the job or not.
  • Only 10 per cent said their employer offered a protection policy as a benefit.

Stephen Crosbie, protection director for Aegon UK said: ‘The level of protection among working women is worryingly low and many of these women carry the sole responsibility to financially support their family in the event of unexpected illness or in the worst case, death. 

‘Yet few are taking the steps to protect themselves and their loved ones. The number of employers automatically providing this safety net is surprisingly low and it is therefore vital that women across the country double check with their employers about protection insurance in the workplace and if there is no provision, take it into their own hands.

‘Government initiatives such as auto-enrolment have successfully started to close the pensions gap in the UK, but currently there’s little being done to address the protection gap, which emphasises the importance of women taking responsibility for their own protection needs by seeking advice and getting a protection policy to suit their needs. 

‘Sorting out your own protection comes with some benefits. A personal protection policy is portable, it moves with you wherever you go − if you’re in work, between employers, or starting a new job, you’ll always be protected. 

‘It’s also more tailored than a workplace policy, enabling you to manage the costs, the level of protection and provider.’

 

HERE ARE SOME KEY FACTS ABOUT LIFE INSURANCE, CRITICAL ILLNESS AND INCOME PROTECTION

 

Life insurance:

  • Life insurance pays a specified sum if you die.
  • There are three types of life insurance – level term, decreasing term and whole-of-life.
    • Level term is taken out for a specified period of time and if you die within that time a set lump sum will be paid.
    • Decreasing term insurance, which tends to be cheaper, the sum the insurance pays will fall over time.
    • Whole-of-life insurance pays a guaranteed amount when you die and there is no specified term. However, the premiums for this type of insurance can change. A proportion of the premium you pay is invested and its growth helps keep the premiums low.

Critical illness insurance:

  • Critical illness insurance pays out a tax-free lump sum on diagnosis of a range of conditions. All insurers must cover seven core illnesses, including cancer, heart attacks and multiple sclerosis.
  • Injuries that leave people permanently disabled are also covered. Common exclusions include HIV/Aids, self-inflicted injuries and those caused by drug abuse.
  • The cost varies widely. The older the policyholder, the more they will pay, as will those already in poor health or those who smoke.

Income protection:

  • This pays a tax-free income if you are unable to work due to illness or unemployment. Up to 70 per cent of income can be covered, depending on the insurer, and you’re covered until retirement.

Rebecca Rutt for ThisisMoney

Here at Logic Wealth Planning we can help to you choose the protection cover to best suit your needs, ensuring you make proper provision for your loved ones and giving you peace of mind should the worst ever happen.

As one of the leading IFA practices in Greater Manchester, Logic Wealth Planning has a team of experienced Financial Advisors specialising in Wealth Management. Working closely with clients in the Heywood, Rochdale, Bury and surrounding areas across the North West, we believe that however modest your income may be, when it comes to Pensions, Savings and Investments we provide the very best financial advice, ensuring that your money is working hard for you and allowing you to enjoy a comfortable lifestyle right through to and including your Retirement years. For your first meeting with us – entirely free and without obligation – please call us now on 0808 1234 321. We look forward to hearing from you.

We are independent financial advisers and can provide you with impartial advice. 

Please contact us at Logic Wealth Planning on 0808 1234 321.