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Are you doing enough to protect your family?



Why it’s more important than ever to get the right insurance cover in case you fall ill.

2 min read

Last year, 99% of UK insurance claims relating to protection areas such as critical illness and life insurance were paid – yet time-poor people may still not have the cover they need.

UK insurers paid out a record-breaking £5 billion in protection-related claims in 2017, according to the Association of British Insurers. The industry also supported a record number of families and helped 5,000 people back to work after a period of sick leave.

This shows the extent to which protection insurance can successfully safeguard you and your family. It’s worth making absolutely sure you have the right level of cover in place.

Maya Prabhu, Head of Wealth Advisory Services says, “Life insurance has long been considered the cornerstone of financial advice. Most people tend to go for life cover because it’s the cheapest option, but experience shows that people are much more likely to claim under critical illness policies than life insurance – so it’s important to consider all the cover options available to protect your family.”

“Most people tend to go for life cover because it’s the cheapest option, but experience shows that people are much more likely to claim under critical illness policies.”
Maya Prabhu, Head of Wealth Advisory Services

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Critical illness insurance pays out a lump sum or regular income if you are diagnosed with a serious condition or have a heart attack or stroke. The money is tax free and can be used to meet a range of needs including:

  • paying off your mortgage
  • stopping work
  • paying for private medical treatment

Alternatively, income protection pays out a monthly benefit if you are unable to work through an illness or injury.

In the past, these policies were criticised for having too much wriggle room, allowing insurers off the hook when it came to paying claims.

But the industry has evolved over the past 15 years. As well as increasing the number of conditions covered, changes in the definition of illness and disability mean insurers now pay the majority of claims, as seen last year.

These changes have also added a layer of complexity though, so even if you already have insurance, it’s important to seek professional advice to ensure you are suitably covered. Two of the most common reasons claims are declined are that they don’t meet the definitions covered by a critical illness policy, or the insurer wasn’t informed about something relevant when the application was made – such as an existing health-related issue.

Finding the right solution

Applying for insurance can be a lengthy, complicated and confusing exercise, particularly when insuring substantial sums. But whether you’re keen to protect your income, pay off a debt or maintain your family’s lifestyle, our advisers will work with you and our handpicked, bespoke panel of insurers to find the right solution and most suitable outcome for you.

Typically, the policies come with a package of support services provided by specialist firms that offer practical and emotional help when you need it most, and not just when you make a claim.

So although a serious injury or illness can be extremely traumatic, Coutts could help you be suitably prepared financially so that money is one thing you and your family won’t have to worry about.

If you’d like to find out more about our personal and confidential service, speak to your Coutts private banker or call Coutts 24 on 020 7957 2424.

Important info:
This article should not be taken as advice and readers/viewers should discuss their personal protection circumstances with an adviser before taking any action.
All insurances are subject to underwriting after which the insurer may decide not to offer cover, reduce the scope of cover or increase the premium based on their risk assessment.

Key Takeaways

Virtually all protection-related insurance claims in the UK were paid last year yet some people may still not have adequate cover. Coutts could help by working with its panel of insurance providers to give you peace of mind in case things go wrong.

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