Life insurance from Summit Financial Services

Posted by David Hallam on 01/05/2024

Looking at protecting your finances in the event of illness can be tough for anybody, but for a climber it can be doubly daunting. Not only have you to consider which protection you require but you also have to find a company which will actually cover you properly.

Most insurance companies will simply exclude claims arising from a climbing incident. However, there are some who will offer terms. The underwriter will consider your experience, how often you climb, what grade you climb to and various other criteria in order to offer terms. It is important that the underwriter fully understands the true extent of your climbing activities. David Hallam, Director of Summit Financial Services gives a few pointers on what to look out for:

There are a number of suitable insurance products which will protect your finances but for long term planning, consideration ought to be given to Critical Illness and Income Protection policies.

Critical Illness Cover is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurer’s policy document, e.g. Cancer, Heart Attack, Stroke, Traumatic Head Injury, Total Permanent Disablement.

Policies may be purchased by individuals either on Single Life basis, or on Joint Life basis, typically in conjunction with a life insurance policy at the time of a residential purchase or re-mortgage to repay the mortgage balance in full if the policyholder is diagnosed with a critical illness condition. Separate cover can also be arranged at any time for additional family protection.

The contract terms contain specific rules that define when a diagnosis of a critical illness is considered valid for claim. It may state that the diagnosis needs to be made by a Physician who specialises in that illness of condition, or it may name specific tests, for example ECG changes of a myocardial infarction, that confirm the diagnosis.

Critical Illness cover was originally designed and sold with the intention of providing financial protection to individuals following the diagnosis of an illness deemed ‘critical’ but not necessarily ‘terminal’.

The lump sum received from the policy could be used to:
• Pay for cost(s) of care and/or treatment
• Pay for recuperation aids
• To pay outstanding financial liabilities, typically a Mortgage
• Fund for a change in lifestyle

Whilst some like the assurance of having a lump sum on diagnosis of a Critical Illness, others deem it necessary to protect their income in case they are unable to continue working as a result of any illness or injury.

Income Protection would pay a regular income in the event of you being unable to work through ill health or accident. The benefit is limited to a proportion of usual income and is designed to pay for essential financial commitments such as mortgage repayments, car finance and household bills. In the event of a claim, income payments received from the insurer are not subject to taxation.

Income Protection is designed to protect both employed and self employed people and provides a regular benefit normally of up to 60% of pre-tax earnings (or profits for self employed) to help maintain important items of expenditure if illness or injury prevents you from working and earning a living.

In order to qualify for benefit, the policyholder must be totally unable to perform their own occupation as a result of illness or accidental injury, this definition is called own occupation.

Income Protection plans often do not pay the benefit immediately once the policyholder is incapacitated, as there is usually a deferred period. This is the period of time between when the policyholder is first off work due to illness or injury and the commencement of benefits. The longer the deferred period, the cheaper the premiums become.

Disclosure

Your climbing and outdoor activities will need to be carefully and accurately disclosed to the insurer and can be included. Accidents and illnesses that occur whilst you are climbing can be covered.


Which option is best?

As you can see, both products are crucial in effective financial planning. Deciding on which product is relevant is subject to whether a lump sum payment is required on diagnosis of a Critical Illness, or whether replacing income using an Income Protection policy which provides a regular tax free income. Ideally both products should be considered as they are both designed to provide different benefits at the point of claim.

Summit Financial Services specialises in arranging life cover, critical illness and income protection cover for climbers, mountaineers and hill walkers. Through their work as a member benefit service for the BMC, they have negotiated special terms and unlike many other companies that do not specialise, they aim to provide the best quote that already includes cover for your sport. The initial quote you will receive from them will already take into consideration your climbing activities. This avoids unexpected extra costs or climbing exclusions once they have submitted your application to the insurer.

By David Hallam, Director of Summit Financial Services www.summit-fs.co.uk

Updated May 2024



« Back

Post a comment Print this article

This article has been read 2486 times

TAGS

Click on the tags to explore more

RELATED ARTICLES

Free 60 day Strava and FATMAP subscription for BMC members worth £18.99
0
Free 60 day Strava and FATMAP subscription for BMC members worth £18.99

We've been working with our friends at Strava and FATMAP to add this benefit to your BMC membership. We are gifting members six months subscription worth £18.99.
Read more »

Free AllTrails 6 month offer for BMC Members
1
Free AllTrails 6 month offer for BMC Members

We've been working with our friends at AllTrails to add this exclusive benefit to your BMC membership. We are gifting members six months subscription worth £17.94.
Read more »

BMC Associate Membership
7
BMC Associate Membership

The BMC Associate membership scheme supports a range of valuable BMC work, as well as providing our associates with a of variety benefits for their organisation and staff.
Read more »

Post a Comment

Posting as Anonymous Community Standards
3000 characters remaining
Submit
Your comment has been posted below, click here to view it
Comments are currently on | Turn off comments
4
Anonymous User
22/09/2014
Email address for this firm doesnt work. Is the BMC still connected with it?
Tim Waterhouse(staff comment)
23/09/2014
There may have been a temporary problem at the time you tried to email but everything should be back to normal now. Thanks for flagging it up.
20/07/2024
"ZomClub: Link chính thức Game Bài Đổi Thưởng Zom Club

Chào mừng đến với ZomClub - nơi mà sự hồi hộp và thử thách gặp gỡ với sự đổi mới và sáng tạo trong thế giới game bài đổi thưởng. Zom Club không chỉ đơn thuần là một cổng game, mà là một trải nghiệm đầy mê hoặc, nơi mà bạn có thể khám phá những tựa game đa dạng và độc đáo, luôn cập nhật những phiên bản mới nhất và các tính năng nổi bật.

Với sự cam kết mang lại sự công bằng và trung thực, Zom Club là nơi bạn có thể hoàn toàn yên tâm về tính hợp lệ và an toàn của mỗi ván chơi. Đội ngũ phát triển luôn chăm chút tới từng chi tiết, từ giao diện thân thiện đến hệ thống hỗ trợ khách hàng nhanh nhạy và chuyên nghiệp.

Địa chỉ : 43 Nguyễn Bỉnh Khiêm, Xương Huân, Nha Trang, Khánh Hòa, Việt Nam

SDT: 0988686899

Website:

https://zomclub.click/


Social:

https://www.tumblr.com/zomclub123

https://x.com/ZomClupClick

https://vimeo.com/user222937544

https://www.reddit.com/user/DarkSuitable6100/

https://ko-fi.com/clupzom

https://www.behance.net/clupzom

https://www.youtube.com/@zomclub123
"

RELATED ARTICLES

Free 60 day Strava and FATMAP subscription for BMC members worth £18.99
0

We've been working with our friends at Strava and FATMAP to add this benefit to your BMC membership. We are gifting members six months subscription worth £18.99.
Read more »

Free AllTrails 6 month offer for BMC Members
1

We've been working with our friends at AllTrails to add this exclusive benefit to your BMC membership. We are gifting members six months subscription worth £17.94.
Read more »

BMC Associate Membership
7

The BMC Associate membership scheme supports a range of valuable BMC work, as well as providing our associates with a of variety benefits for their organisation and staff.
Read more »

BMC MEMBERSHIP
Join 82,000 BMC members and support British climbing, walking and mountaineering. Membership only £16.97.
Read more »
BMC SHOP
Great range of guidebooks, DVDs, books, calendars and maps.
All with discounts for members.
Read more »
TRAVEL INSURANCE
Get covered with BMC Insurance. Our five policies take you from the beach to Everest.
Read more »