This guide is for informational purposes only.
No one plans for illness, injury, or loss, but a well-structured protection strategy ensures your lifestyle, income, and loved ones are safeguarded when life changes unexpectedly.
At Prosper, we help you understand how insurance fits into your wider financial plan and how to make decisions that reflect your real priorities, not just product features.
What is protection insurance?
Protection insurance offers financial resilience when the unexpected happens, whether that’s illness, disability, or death. You pay regular premiums, and in return, receive a payout if you face a covered event.
But it’s not just about ticking a box. The right cover should work alongside your income, obligations, and long-term goals.
1. Life insurance
Purpose: Provides a lump-sum payment to your loved ones if you pass away.
This payout can help cover:
Outstanding mortgages or rental costs
Children’s education and care
Daily living expenses for your family
Funeral and legal costs
Why it matters: If you have dependents or financial responsibilities, life insurance is a simple but powerful way to protect those who rely on you, offering stability when it’s needed most.
2. Income protection insurance
Purpose: Replaces part of your income if you’re unable to work for a long time due to illness or injury.
This cover can:
Pay regular income to help cover mortgage payments, utility bills, and other essentials.
Maintain your financial independence while you recover.
Continue until you return to work or reach retirement, depending on the policy.
Why it matters: If you don’t get paid when you’re off work for a long time,income protection can ensure financial security until you can work again or for a set time.
3. Critical illness cover
Purpose: Pays a lump sum of money if you’re diagnosed with a serious illness such as cancer, heart attack, or stroke. The illnesses covered are listed in the policy, so it’s important to check.
This financial support can help with:
Private medical treatment or therapies
Adapting your home or lifestyle
Covering lost income or additional childcare
Taking time off to recover on your own terms
Why it matters: A serious illness doesn’t just affect your health; it can reshape your finances overnight. Having a buffer can reduce stress and protect the goals you’ve worked hard to build.
Here’s what to know about protection insurance
Insurance doesn’t eliminate risk, it manages its financial impact.
Policies vary. Reviewing the fine print matters and so does understanding your rights.
Cover amounts and duration can (and should) be tailored to your needs.
Full and accurate health disclosures ensure your policy works when you need it most.
Where Prosper can help
Understanding protection insurance is one thing. Knowing how it fits into your full financial picture is another. That’s where Prosper comes in.
Delivered in partnership with Horizon Financial Planning and Coaching, our fixed-fee guidance service provides:
Coaching and information on life, critical illness, and income protection options
A holistic view of how protection interacts with your family, career, and wealth plans
A clear understanding of your current position
Whether you’re starting a family, building a business, or thinking long-term, we provide guidance so you can make calm, confident decisions about how to protect your financial future.
However, Prosper does not offer personal recommendations on specific financial products or manage investments on your behalf.
Book your free consultation
There’s no obligation — just clear financial guidance.
It is provided by our partner Horizon Financial Planning and Coaching, led by Chris Smith, a Chartered Insurance Institute (CII) member with over 30 years of experience in financial services, including a tenure as Global Head of Conduct and Compliance at HSBC.
Join Prosper and book your free consultation to explore how protection insurance fits into your financial life plan.
Prosper and Horizon Financial Planning and Coaching do not offer regulated advice.
Glossary
Premium: The regular payment you make for your policy.
Policy: Your formal agreement with an insurer.
Lump sum: A one-time payment made when you claim.
Cover: The specific risks your policy protects against.
Dependents: Individuals who rely on your income or support.