Paragon Independent Financial Solutions Ltd is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Services Authority. Sesame is entered on the FSA register www.fsa.gov.uk/register/ under reference 150427.
The FSA do not regulate some forms of mortgage and Inheritance Tax Planning.
What types of protection product are there?
The majority of protection arrangements are now on a 'term' basis. This means that, if any of the events insured against occur within the policy term, the plan pays out the agreed amount, and if no claim is made within the term, the plan ends, without paying anything.
The level of cover may be constant throughout the term, increase (for example, to keep up with inflation) or decrease (for example, when a reducing debt, such as a repayment mortgage is being protected).
'Whole of life' plans, which build up a surrender value, are also available, although these cost more for a given level of cover.
The main types of protection are as follows.
Life assurance
The plan pays out if the 'life assured' dies within the term of the policy and also, in some cases, if they are diagnosed as being terminally ill. Most plans pay out a lump sum, but some pay out a fixed income for the remaining term of the plan. In the majority of cases, the net cost will be lower than alternative products. However, there are other factors to consider when selecting the most suitable product, so this will not be right for everyone.
Critical illness
The plan pays out a lump sum, on diagnosis of a range of specified conditions, such as stroke, or specified forms of heart attack and cancer, provided that the life assured survives a certain period (typically 28 days).
Income protection (Permanent health insurance)
The plan pays out an income, to replace earnings, if the life assured is unable to work due to ill health, for longer than a 'deferred period' (typically between 1 and 12 months). The plan can potentially continue to pay an income until the life assured recovers, reaches retirement age or dies.
Accident, sickness and unemployment
This type of plan is used to protect mortgage payments. Should one of the insured events occur, the plan will, after a deferred period, pay a monthly income, for a limited period, or, if earlier, until recovery or return to employment. For this type of policy, we usually arrange products from a selected panel of providers.
Private medical insurance
This type of plan provides a greater choice of where and when to obtain hospital and other specialist medical treatment, compared with the NHS. 'Pre-existing conditions' are usually excluded from the cover, for a defined period.
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Company registration number 4930866. Registered in England and Wales.
Helping to realise what's possible
Helping to realise what's possible
