Simon W
24th May 2001, 13:14
What's the deal with regards to life/health insurance and aviation? I am only 24 and at the moment don't have either type. I don't have any kids or dependencies so am thinking that life insurance is a wait of time for me however life insurance might be a good idea once I have finished my training for the ppl? Just interested to hear what you lot have.
Thanks in advance,
Simon
Simon,
Hello there. As an IFA I am happy to answer your questions with basic information. My industry is highly regulated and I am not able to give specific advice without "knowing my client"!
4 core types of protection:
1. Life cover - pays lump sum on death for family protection, clearing of debts (overdrafts/Carreer development loans etc.). Two basic types - Term assurance for a fixed term and whole of life (which as the name suggests runs for the whole of your life).
2. Critical Illness cover - pays lump sum on diagnosis of any one of a range of illnesses eg, heart attack, stroke, cancer etc. Most life offices offer a "core" group of conditions covered and then offer some others on top.
useful for repaying loans/mortgages/liabilities - cash injection for medical care/rehabilitation/time off work/alterations to home - eg. break spine and need to have alterations to home so you can "live" downstairs with bedroom/bathroom facilities etc.
3. Income Protection Insurance - provides an income replacement after a set time (called a deferred period for eaxmple 1,3,6,12 months) and this is paid through to your selected retirement age (if you never work again) or if you go back to work then the benefit stops. Used to be known as PHI cover.
(3 and 4 are really complimentary)
4.Private Medical Insurance - covers the cost of medical treatments.
Hope this answers your question!
PFO
[This message has been edited by PFO (edited 24 May 2001).]