Protection Planning

Frequently asked questions

What is protection planning?

Protection planning is about putting insurance in place to protect you, your family, or your business against the financial impact of unexpected events, such as death, serious illness, or loss of income. Protection planning can apply to both individuals and business owners.

Protection covers for individuals

Life insurance - Life insurance pays out a tax-free lump sum to your family if you die during the policy term.

Common types include:

• Term assurance – covers you for a fixed period
• Whole of life cover – lasts for your lifetime
• Endowment policies – combine insurance with savings

You choose how much cover you need and for how long.

Critical illness cover - Critical illness insurance pays out a lump sum on diagnosis of a serious medical condition. Conditions covered vary by insurer, but commonly include:

• Cancer (specified types
• Heart attack
• Stroke
• Coma
• Traumatic brain injury
• Severe burns

This money can be used for treatment, recovery, or everyday living costs.

Income protection - Income protection provides a regular monthly income if you are unable to work due to illness or injury.

• Pays a percentage of your income
• Continues until you return to work or reach the policy end date
• Helps cover bills, mortgage payments, and living expenses

​

Protection covers for businesses

Relevant life plan - A Relevant Life Plan is a tax-efficient life insurance policy set up by a business for an employee.

• Premiums are paid by the business
• Provides a death-in-service benefit
• Can offer tax advantages for both employer and employee

Executive income protection - Executive income protection helps businesses manage the cost of an employee being unable to work due to illness or injury.

• Can fund ongoing sick pay
• Helps retain key staff
• Supports cash flow during long-term absences

Key person protection - Key person protection insures a business against the financial impact of losing a key individual due to death or serious illness.

• Provides a lump sum to support the business
• Helps cover lost profits, recruitment costs, or debt
• Commonly used for directors, partners, or key employees

What is the purpose of a protection plan?

Life can change without warning. An untimely death, illness, or loss of income can create long-lasting financial stress for the people who depend on you.

The purpose of a protection plan is to provide financial security when the unexpected happens, helping protect your family’s lifestyle, dignity, and future.

For individuals

The purpose of individual protection cover is to ensure that if something happens to you, your loved ones receive either:

• A tax-free lump sum, or
• A regular monthly income

This financial support can help cover everyday living costs, mortgage payments, childcare, and other essential expenses during what is often the most difficult time for a family.

For business owners

For business owners, protection planning helps ensure continuity and stability if a key person becomes ill or dies. It can:

• Protect the business from financial disruption
• Safeguard income for family members
• Provide reassurance to partners, employees, and other stakeholders

What is the difference between insurance and protection plans?

In practice, there is no real difference between insurance and protection plans.

Protection plans are a type of insurance. The term “protection” is commonly used to describe insurance policies designed to protect against financial risks such as death, serious illness, or loss of income.

Insurance companies provide protection plans, and they are regulated and structured in the same way as other insurance products.

The word “insurance” is a broad term that includes many types of cover whereas Protection is simply the term used in financial planning

Business owners

Where appropriate, we explore tax-efficient ways for your business to fund protection premiums.

Intelligent risk cover design

We consider family health history, income needs, children’s age, debt levels and long-term plans to ensure your cover is neither too much nor too little but just right and affordable.

How does a protection plan work?

A protection plan works by providing financial support if certain unexpected events occur, such as death, serious illness, or loss of income. You pay a regular premium (monthly or annually) to an insurance provider. In return, the policy pays out a lump sum or regular income if a specific event happens while the policy is in place.

The level and type of cover depend on what you are protecting and for how long.

Personal & family protection policies may include:

• Level Term Assurance (Life Insurance)
• Income Protection, and
• Critical Illness cover.

Business owners protection plans may include:

• Relevant Life cover, 
• Key person cover and 
• Executive Income protection.

If something happens to you, your loved ones receive a tax-free lump sum or monthly income, ensuring stability at the hardest possible time.

For business owners, protection ensures continuity, safeguarding both your family and other stakeholders / partners.

The Impact