Most of our clients have personal life insurance to cover their mortgage against their premature death or serious illness. Protecting your loved ones in this manner isn't compulsory but should be considered a necessity. We would always suggest to our clients that this is the bare minimum requirement in terms of their protection needs.
In many cases we also recommend additional cover that will provide dependants with a tax free income if they were to die prematurely; this type of cover is called Family Income Benefit. read more
RELEVANT LIFE COVER
ARE YOU A BUSINESS OWNER ? If so, you can pay premiums for Life Insurance for you and any of your key employees through your company tax efficiently. As a lower rate tax payer the effective cost of your insurance is reduced by 40% and higher rate tax payers save even more. All employees and shareholders of your Limited company are eligible for this (there is no requirement to be a Director of the business).
When looking at your personal finances, your income is probably the most important aspect. It provides the means by which you survive, it pays the bills, the mortgage, school fees and holidays. Therefore, protecting it should be of paramount importance.
This insurance pays out a MONTHLY AMOUNT if you become unable to continue your normal employment due to accident or long-term illness or sickness, on the say so of a medical practitioner.
Income Protection (I.P.) should be high on protection priority list for anyone not covered by a group I.P. scheme and is usually very affordable for meaningful cover because of the range of options available to you.
BUSINESS OWNER ? In some instances this can be paid for through your business with associated tax advantages.
Critical Illness cover pays a CASH LUMP SUM on diagnosis of a critical illness contained within a pre-specified list of illnesses (e.g. invasive cancer, stroke, heart attack, loss of eyesight/speech/limb, debilitating neurological illnesses).
Someone under 65 years of age is 5 times more likely to suffer a Critical Illness than die. The price reflects this, typically people apply for a smaller amount than would be required if they were to die and complement this with an Income Protection plan.
Critical Illness policies pay out immediately on diagnosis of the illness, (as opposed to Income Protection plans which are subject to a short wait called the deferred period (typically 4, 8, 13 or 26 weeks).