LPA’s and CIC; a match made in Insurance 😊

The Importance of LPA's being compatible with Critical Illness Cover and Income Protection

I believe that everyone, no matter their age or situation, should have Lasting Powers of Attorney in place. We all know the importance of needing a Will and Life Insurance in place to protect and relieve the stress from our loved ones on death. Do we all make provisions for our families if we were to become incapacitated by an illness or accident? 

Working alongside a fantastic team @ Premier Financial Group and discussing this issue with other insurance and financial advisers, I feel there needs to be something said about the importance of Lasting Powers of Attorney (LPA) running hand-in-hand with any Critical Illness Cover (CIC) or Income Protection (IP). 

Anyone advising or purchasing any kind of CIC or IP insurance must understand; If the condition initiating a claim causes or leads to incapacity, what happens? In short, the money goes into a bank account that can’t be accessed! Pointless right.

Safety measures can cause real hardship

If capacity is lost, banks can ‘freeze’ accounts. This is done for the protection of the client and their finances, but it can also cause huge issues if the money in that account is needed to pay bills or put food on the table. Just consider your own situation, if you could not access the funds in your sole account for 1, 2 or even 6 months, what influence will this have on your family?

CIC and IP is there to ensure that if you are out of work due to an illness or injury, your bills are paid and your family is minimally effected by the incident. In my mind, an absolute no brainer. Unfortunately, these benefits come at a (perceived) premium so many don’t choose to take the cover. For those that have taken the cover, they very rarely consider the fact that if the incident results in loss of capacity, these funds may not be easily accessible. The solution? Lasting Powers of Attorney.

How will Orca Will Writers support you?

Whether you are an adviser or client, you need to understand that having LPA’s in place can drastically help to ensure that the insurance you are advising/buying will be accessed easily by the family you have worked so hard to protect. 

At ORCA Will Writers, we work alongside insurance advisers and individuals to ensure that the importance of LPA’s is highlighted as well as enabling the client to easily put LPA’s in place. 

Get in touch!

If you need any advice or have any questions about CIC, IP or LPA’s please do not hesitate to get in touch at info@orcawilwriters.co.uk.

ORCA Will Writers take the time to listen and discover the needs of our clients. Contact us to see how easy it is to tick that one item that has been on the ‘to-do’ list for months (usually years). www.orcawillwriters.co.uk