LIFE INSURANCE
Life Insurance is one of the most important areas of financial planning.
This provides a lump sum to your family upon death. You can opt for either term assurance or whole of life assurance.
TERM ASSURANCE
This provides life cover for a specified period of time (for example 20 or 25 years) and tends to be more affordable. We can help you decide the level of cover that you should have and what the premiums will be. When you apply for life cover, the provider will ask some questions about your health to determine the final premium. We always recommend that the life cover is placed in trust - this sounds complicated but it is very straightforward and means that in the event of a claim, the payment will be made quickly and your family will not have to wait for probate to be granted to receive the proceeds. If you have a business then the business can pay for this cover using a specific plan known as 'Relevant Life'. This can be a very tax efficient way of paying for the life cover.
WHOLE OF LIFE COVER
Whole of life assurance will provide a lump sum whenever death occurs. It is more expensive than straightforward term assurance but means that you are not restricted to a set term. It can be useful where a client has an Inheritance Tax liability as the sum assured can be used to pay some or all of the liability.
INCOME PROTECTION
This type of cover is designed to pay out an income should you be unable to work for a long period of time due to illness or injury. This is particularly important for self employed individuals or those without or with only limited income protection through their employer.
CRITICAL ILLNESS
This provides a lump sum in the event of you being diagnosed with a specified serious illness. The range of cover can vary between providers and so it is important to ensure that research is undertaken to select the most suitable provider for you.