Menu plan

In an ideal world everyone would be able to afford as much protection cover as they need. Or if they knew what illness they would suffer they could take out cover specifically for that. Fortunately, there is a way to address both of these problems using a menu-based product.

Using a menu-based product will allow different, smaller amounts of cover to be bought, rather than buying one specific type of cover.

What are the advantages of doing that?

Adaptability to lifestyle changes

A menu-based product can easily adjust to significant life events such as marriage, divorce, promotions, or moving home. This flexibility allows individuals to add or remove covers or adjust the amount of cover, usually without needing additional medical evidence.

Comprehensive coverage

The ability to mix and match products means that by arranging a small amount of each type of cover (for example, life cover, critical illness cover, and income protection), individuals can protect themselves against a broader range of risks. This approach means that they are not left vulnerable if they only have one type of cover.

Cost-effectiveness

Menu-based formats allow for mixing and matching different types of cover in a cost-effective manner. For example, opting for cover that pays regular income payments instead of a lump sum could significantly reduce premiums.

Complementary benefits

Having multiple types of cover can provide complementary benefits. For instance, income protection can cover regular bills, while a lump sum from critical illness cover can be used for one-off expenses like home modifications or a recuperative holiday.

Flexibility in payment options

These products often offer various payment options, such as level, decreasing, or increasing cover, and the choice between lump sum or regular income payments. This flexibility can help tailor the protection to the individual's current and future needs.

Protection shouldn’t be a one size fits all solution

An adviser who recommends life cover, but no critical illness cover could, for example, find themselves with some awkward questions to answer if their client developed a critical illness.

The same applies if they recommend critical illness cover but no income protection and their client becomes unable to earn a living as a result of a bad back or stress related condition. Neither condition would be covered under a critical illness plan – unless the problem was so serious that it qualified for a total permanent disability claim – but both would be covered by income protection.

A little bit of each cover is better than none

Arranging a small amount of each cover can provide the best of both worlds. The individual is protected against a broader range of eventualities and, if they qualify for a pay-out from both covers, the benefits should complement each other well.

The regular income from the income protection should hopefully be sufficient to take care of most of the regular bills whilst the lump sum from the critical illness cover could be used to finance one-off costs such as minor adaptations to the home that become necessary to accommodate a disability.

Protection sold with a menu based approach can also offer the opportunity to have either level, decreasing or increasing cover and may even allow life and critical illness cover payments to be made as a regular income rather than as a lump sum. Taking advantage of such flexibility can greatly reduce costs. For example, choosing an income as opposed to a lump sum could reduce the premium significantly.

Overall, a menu-based approach to protection cover provides a tailored, flexible, and comprehensive solution that can adapt to changing circumstances and offer peace of mind.