When it comes to personal protection insurance, myths and misconceptions can sometimes prevent people from making informed decisions. Whether you're considering mortgage protection, income protection, life insurance, or critical illness cover, it's important to separate fact from fiction.
At Alexander Hall, we regularly speak with clients who are unsure about their protection needs due to these common misunderstandings. Let’s explore the 5 most frequent myths and uncover the truth behind them.
Myth 1: “Personal Protection Is Too Expensive”
Many people assume that personal protection insurance is a luxury they can’t afford. In reality, mortgage protection and similar policies are often surprisingly affordable. The cost is minimal when compared to the potential financial burden of losing your home or income. Policies can be tailored to suit your individual budget and needs, so you’re not paying for unnecessary extras. Rather than being a financial strain, personal protection is a smart investment that offers peace of mind and long-term security. We can help you find cost-effective solutions that balance affordability with comprehensive coverage.
Myth 2: “The State Will Look After Me”
It’s a common belief that government support will be enough in times of crisis. However, in the UK, Statutory Sick Pay (SSP) is just £118.75 per week, and it’s only available for up to 28 weeks*. This amount is unlikely to cover even basic living costs, let alone a mortgage or other significant financial commitments. Relying solely on state support can leave you and your loved ones vulnerable. Personal protection insurance ensures that you have a reliable safety net in place, offering far more comprehensive and dependable coverage than government benefits alone. Our advisers can help you assess your current risk and identify gaps that state support may not cover.
Myth 3: “I Have Great Benefits Through Work”
Employer-provided insurance is a valuable benefit, but it’s not always enough. Group policies often come with limitations, such as lower benefit amounts or restricted coverage areas. They may not fully protect you if you have a mortgage, dependents, or other substantial financial responsibilities. Additionally, group insurance is tied to your employment. If you change jobs or are made redundant, your coverage typically ends. In contrast, personal policies stay with you regardless of your employer, offering consistent and comprehensive protection. We’ll help you identify any shortfalls in your cover and complement any workplace benefits you have with personal policies..
Myth 4: “I’m Young and Healthy—Why Would I Need It?”
Take a moment to reflect on the people around you - your family, friends, neighbours, and colleagues. How many of them have experienced an unexpected illness or medical issue? These situations often arise without warning, reminding us of how unpredictable life can be regardless of age. Being young and healthy is the ideal time to secure personal protection. By taking out a policy now, you can lock in lower premiums, making your coverage more affordable over the long term. Starting early also means you’re protected even if your health changes in the future. It’s a proactive step that helps you build a strong financial foundation and ensures that you’re prepared for whatever life throws your way.
Myth 5: “I’ll Sort It Out Later”
Procrastination is one of the biggest risks when it comes to personal protection. Many people delay taking out insurance, assuming they’ll get around to it when life settles down. Unfortunately, life rarely follows a predictable path. Waiting too long can mean missing out on lower premiums or even becoming uninsurable due to changes in your health or circumstances. Putting protection in place today ensures you’re covered for the unexpected and gives you peace of mind knowing your financial future is secure—no matter what tomorrow brings.
Don’t let myths put your future at risk
Personal protection insurance isn’t just for the vulnerable—it’s for anyone who wants to safeguard their financial future. By understanding the truth behind these 5 common myths, you can make confident, informed decisions that protect your home, your income, and your loved ones. Our expert advisers are here to help you navigate your options and find the right personal protection policy —whether it’s mortgage protection, income protection, or life insurance—tailored to your unique needs and budget.
Get in touch with us today for a free, no-obligation consultation and discover how easy and affordable it can be to protect what matters most.
The cover available to you and our advice is based on your individual needs and circumstances, and the insurer’s terms, conditions, and exclusions.
* https://www.gov.uk/statutory-sick-pay
