If you have to stop work due to ill health it can result in a worrying time for many families as debts can mount up quickly. Health insurance can make sure that your income is protected and can also help to pay for unexpected medical bills or provide a lump sum in the event of a critical illness.

There is a vast range of health insurance products available and it is worthwhile getting an independent financial advisor to explain the different schemes and advise on the best one to suit you. If you buy a health insurance policy through an independent financial advisor the advisor will organise your payments and make a claim on your behalf when you are ill.

CRITICAL ILLNESS INSURANCE*

• Can pay a tax-free lump sum if you
• Suffer a critical illness such as a heart attack or cancer or
• Are permanently unable to do your job due to illness or accident
  

INCOME PROTECTION INSURANCE*

• Pays a regular income if you can't work due to ill health
• Policies can start between one day and two years after the onset of inability to work
• Benefits can be paid out up to retirement age or until you get better and return to work
  

PRIVATE MEDICAL INSURANCE**

The National Health Service is the envy of the world, but private medical insurance is becoming more and more popular because of the choice and control it offers.

• The private health service is funded by medical insurance and private patients' fees
• The surgical and medical consultants usually work within both the NHS and the private sector. This means surgeons can work in their specialist fields and gain extensive experience within the NHS which is then utilised in the private sector
  

NOTE - Services marked * may not be regulated by the Personal Investment Authority.
Services marked ** are not regulated by the Personal Investment Authority.

LONG TERM CARE

We may be living longer, but we may not necessarily be in good health. At some time in our lives we may need some form of long term care in our own homes or in nursing or residential care.

The average cost of care in rest homes is around £300 a week. Nursing homes charge more as they provide a greater degree of clinical care.

It may be difficult to meet the costs of care from your income.

The state, in certain circumstances, will provide the costs of care.

• If you have less than £10,000 of assets you are entitled to full funding
• If you have between £10,000 and £16,000 you will be given some local authority assistance
• If you have more than £16,000 the local authority will not provide any assistance
• Income from pensions and investments is taken into account
  

INSURANCE POLICIES

• Varied policies enable you to insure against the need for long term care
• They can be by way of monthly premium or lump sum investment