Northamptonshire Insurance Broker Pendragon Protect believes in a transparent, honest and a simple approach to Life Insurance, Critical Illness Cover and Income Protection Insurance. They break down the available options to give their clients a clear view of exactly what cover they require in plain English. All Things Business caught up with founder of Pendragon Protect, Adam Kaplan who has 13 years of industry experience, to delve deeper into the world of protection insurance:
Income protection is designed to protect you if you’re unable to work due to an injury or illness. It allows you to receive a monthly benefit and be covered until you either return to work, the policy ends or you pass away.
Income protection will cover you for any injury or illness, however it’s important to understand it won’t cover you for some pre-existing conditions. Like car insurance, you cannot take out an insurance policy, if you’ve crashed your car and were uninsured.
Our detailed upfront discussion about your medical background allows us to speak with all the insurers to find out who will offer you the best terms and premiums considering your medical background. These discussions can also be the difference between one insurer covering you for a pre-existing condition and not.
This is made a lot easier by the fact we are not restricted to a panel of insurers or tied to one insurer. We have access to a range of insurers.
It is important to remember that Income Protection does not cover redundancy, unemployment or lack of work or if you’re self-employed.
Anyone who pays tax on their income needs Income Protection. Whether you’re employed, self-employed, a director of a Limited Company, a freelancer or a contractor. If you pay income tax you should have Income Protection.
The most common misconception is most definitely that the self-employed, freelances and contractors think they can’t get Income Protection, Thankfully they can and they should really have it. The monthly income provided by an Income Protection policy is based on their pre-tax profits.
NO, there isn’t a greater need. Everyone still needs Life Insurance, Critical Illness Cover and Income Protection regardless of what’s going on right now with Covid-19.
Coronavirus has definitely made people more aware of these types of insurance and we have seen more than the usual number of enquiries over the last few weeks.
Covid-19 will hopefully come to an end soon, however there are still millions of other illnesses that could kill us or keep us off work that we need to protect ourselves for.
The media have definitely bought this type of insurance to the forefront of people’s minds during these unprecedented times.
We had a client referred to us, a while back, who was looking to purchase a new home and wanted to review her options. We made a recommendation and gave her options to consider. 18 months later she got back in touch to say she found a property to buy; however, 4 weeks prior to this she was diagnosed with a condition called Hemochromatosis. After speaking with all the insurers, only 1 was prepared to consider an application, due to her recent diagnosis. We were advised by the insurer that her premiums would increase by at least 50% due to the Hemochromatosis. After they assessed her medical records, they offered cover, WITHOUT the 50% increase, to our surprise. We called the insurer to double check they hadn’t made a mistake, and the client had full disclosure, considering her Hemochromatosis. They confirmed they have assessed her medical records, including the Hemochromatosis and are happy that they don’t need to increase her premiums by 50% as her condition is now well controlled. Our client was over the moon as you can imagine! This is why we do the medical research upfront, otherwise quoting based on your date of birth and if you smoke is a waste of everyone’s time, which is what happens when you try and get a quote online. It’s cases like this, which makes our job so satisfying.
Unlike online comparison websites, we discuss your full medical background upfront, including your family history, height and weight, hobbies you may participate in and even your occupation as these can impact your premiums and cover too.
This allows to find out, which insurer, will really offer you the best premiums and cover considering the above and allows us to make a recommendation, that ensures you have the most appropriate cover.
Google doesn’t have all the answers:
Because we have access to a range of insurers, we have been able to recently get a client standard rates for their BMI (height and weight ratio) whereas the other insurers would have increased her premiums due to increased risk.
We have also got a client a policy that covers them for their participation in motocross and mountain biking, whereas as all the other insurers would have excluded this.
One of the key things that makes Pendragon Protect different is that we help our clients put their Life Insurance policies in a Trust.
Most people we speak to don’t realise that their Life Insurance forms part of their estate, which means it could be potentially liable to an inheritance tax liability of 40%.
Furthermore, by having your Life Insurance in a Trust this also avoids lengthy delays with Probate and Wills, which can typically take several months, if not years to be granted.
Having your Life Insurance in a Trust also ensures the right people get the money.
Last year a client of ours sadly passed away from cancer only 3 months after diagnosis. We also helped the family through the claim.
When we arranged their Life Insurance policy it was written in a Trust for their children. The funds were cleared in the Trustees account, for the benefit of the children, free from any inheritance tax within less than a month of them passing away.
If we hadn’t helped the client put their Life Insurance in a Trust, who knows if this would have been paid out by now?
We do not charge any fees for our advice nor do we charge to help you put your Life Insurance in a Trust.
Furthermore, we don’t just set up policies, we hold your hand throughout the whole process, and even more so when it comes to claims.
Even if you already have existing Life Insurance, Critical Illness Cover or Income Protection please don’t be afraid to get in touch. If you took out your insurances online, through a mortgage broker, bank or building society then there is a very good chance we may be able to get you better cover and save you money.
If you don’t have any cover and you’re curious to understand what your options are, please also get in touch.
For more information visit pendragonprotect.co.uk.