Protection, explained properly

Life insurance: who actually needs it (and who may not)

Life insurance does one simple job. If you die during the term of the policy, it pays out a lump sum (or in some cases a regular income) to the people you leave behind. The real question is not whether life insurance is good or bad, it's whether anyone would be financially worse off without you. If you have a partner who relies on your income, children, a mortgage or other debts in your name, the honest answer is probably yes.

Equally, plenty of people don't need it, and I'll tell you so. If you're single with no dependants and no significant debt, a policy may be solving a problem you don't have. Some people already have generous death-in-service cover through work (worth checking rather than assuming, as it usually ends when you change jobs), and others hold enough assets that their family would be secure regardless.

If cover is right for you, the main flavours are:

• Level term: pays a fixed sum if you die within the chosen term.
• Decreasing term: the sum reduces over time, often paired with a repayment mortgage.
• Whole of life: no end date, often used in estate and inheritance planning.

Premiums depend on your age, health, lifestyle and the amount and length of cover, and every policy is subject to underwriting and its terms and conditions.

Critical illness cover, in plain English

Critical illness cover pays a lump sum if you're diagnosed with one of the serious conditions listed in your policy and survive any waiting period it sets. The thinking is simple: a serious diagnosis usually brings financial pressure at exactly the moment you should be focusing on recovery. A payout can clear the mortgage, cover lost earnings through treatment, pay for changes to your home, or simply buy you time off without money worries.

The crucial word is "listed". Policies only pay for the conditions they define, and the definitions matter as much as the headline list. Two plans can look identical on price yet differ meaningfully in what they would actually pay for, which is where advice earns its keep: I compare the quality of the cover, not just the premium. Many plans also include an element of children's cover, which often surprises parents.

Critical illness cover can be bought on its own or combined with life insurance in a single policy. Acceptance and pricing are subject to underwriting, exclusions apply, and it's vital your health history is disclosed accurately at the outset so a future claim stands on solid ground.

Income protection: the cover almost everyone overlooks

If I could only arrange one policy for a working-age person, it would usually be this one, yet it's the cover most people have never considered. Income protection pays you a regular monthly amount if illness or injury stops you working, and it keeps paying until you're back at work, the term ends or the claim period runs out, depending on the plan. Your income is the engine behind everything else: the mortgage, the food shop, the pension contributions.

Most of us quietly assume we'd be looked after. In practice, Statutory Sick Pay is a modest and short-lived safety net, employer sick pay varies enormously, and if you're self-employed there may be nothing at all. The key choices are the deferred period (how long you wait before payments begin, a big lever on cost), how much of your income you cover, and the definition of incapacity. I generally look for "own occupation" definitions, which assess whether you can do your job rather than just any job. Premiums reflect your occupation, age, health and chosen options, and claims are subject to the policy terms.

Protecting your mortgage and the family home

For most families the home is the biggest financial commitment they'll ever take on, so it deserves deliberate protection rather than the tick-box policy arranged in a rush on completion day. The usual approach is to match cover to debt: decreasing term insurance alongside a repayment mortgage, level term for an interest-only loan. Adding critical illness cover or income protection means the mortgage can still be paid if serious illness stops you working, not only if you die.

Two details are often missed. First, a joint policy pays out once and then ends, so in some circumstances two single policies are worth considering instead. Second, writing a policy in an appropriate trust can help the payout reach the right hands quickly, usually outside probate, and can play a useful role in inheritance tax planning. Trusts are straightforward to set up at the application stage and I raise them as standard.

Life moves on, and cover should move with it. Remortgaging, moving house, having children or separating are all moments to check the policy still matches the debt and the people relying on it.

Protection for business owners

If you run a business, there's a layer of protection many owners have never been shown. Key person cover insures the business against the loss of someone whose death or serious illness would hit profits: a founder, a leading fee-earner, the person who holds the client relationships. The payout gives the business breathing space to recruit, steady the ship and reassure lenders.

Shareholder (or partnership) protection tackles a different problem: what happens to the shares when a co-owner dies. Without a plan, their shareholding typically passes to their family, who may want income the business can't spare or a sale the surviving owners can't fund. Arranged properly, usually alongside a cross option agreement, it provides the money for the remaining owners to buy the shares, so the family receives fair value and the owners keep control.

Directors may also benefit from relevant life plans, a way for a company to provide individual life cover that can be more tax-efficient than paying for it personally. Tax treatment depends on individual circumstances and may change, and all business protection is subject to underwriting and policy terms, so this is an area for tailored advice rather than guesswork.

Already have cover? How I review it, and how I work

Many people who come to see me already hold some protection, often a policy sold alongside a mortgage years ago and never looked at since. A review answers simple questions. What do you actually have? What does it cost? Does it still match your mortgage, income and family? Is it written in trust? Are there gaps, or overlaps you're paying for twice? If your existing cover is right, I'll tell you to keep it; I have no interest in replacing policies for the sake of it. And one rule is non-negotiable: never cancel existing cover until any replacement is fully in force.

The process itself is straightforward. We start with a free initial consultation, in person in Bury or by Teams or phone anywhere in the UK. I take time to understand your income, debts, dependants and existing cover, research the options, and recommend what I believe fits, explained in plain English with the reasoning laid out. I then handle the applications and underwriting, including any medical questions, and stay in touch so your cover keeps pace with your life.