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Protection |
WHY DO I NEED TO CONSIDER PROTECTION?You should ask yourself what financial
impact death, illness or the inability to work may have on your family,
dependents and yourself. If adequate savings are not readily available, suitable insurances can be the best solution, life assurance can not only cover an outstanding mortgage, but other loans or debts, adequate financial protection for the family should also be considered. Without sound financial planning the
consequences of the above could be disastrous and in extreme circumstance
could result in the loss of your home. PICKING
UP THE PIECES. It’s easy to think that a family
will always fit perfectly together, but remove just one piece and the
whole-picture starts to fall apart. Few families are adequately protected if a
key member stops contributing to the family upkeep, research has shown that
today domestic work done by the average mum would be worth £21,184 per year*.
(*Source Legal &
General Value of Mum 2004) Life
Assurance is a more flexible
friend than you may think, there are so many different varieties and so many
life assurance companies with similar offerings, that expert advice can be
invaluable. Life Assurance can be for a level or decreasing term, indexed linked, convertible, reviewable, and rolling term, as well as whole of life. We can advise on the jargon and what might be appropriate. There are many other forms of protection that should be considered and these might include:
SHOULD MY LIFE ASSURANCE BE WRITTEN IN TRUST? Yes, in most cases, we can explain the
advantages, including their use in tax planning, when a trust is appropriate,
including suitable wording.
Permanent
Health Insurance (PMI) Provides cover in the event that the insured is unable to work and
therefore to earn due to illness or injury. Premiums depends on occupation, age, and period of time that elapses
before the insured can claim. CAN I PROVIDE A REGULAR INCOME FOR
MY FAMILY IN THE EVENT OF DEATH OR SERIOUS ILLNESS? Yes, policies can be arranged that provide
tax-free income as opposed to a lump sum. Personal Income Replacement provides a
regular benefit to replace lost earnings if you suffer illness or injury. Solutions can be tailored for those people in higher risk occupations or who are not working, and provides income if they are unable to perform a number of activities of daily living due to physical or mental illness.
IS CRITICAL ILLNESS THE SAME AS PERMANENT HEALTH INSURANCE? No, the two types of cover compliment each
other and should be considered independently. Consider how many lives can be wrecked by
a critical illness such as heart decease, cancer or stroke. It is surprising
that more people do not have critical illness insurance. The principle is straightforward, in the
event of an illness being diagnosed, the insurance company will pay out a
lump sum after a survival period. Often critical illness is combined with
other types of insurance. Not all policies are the same nor are all
illnesses covered, therefore it is important to research carefully and
understand the cover being offered under the policy. Insurance can be arranged that covers a
very wide range of potential illnesses, focused solutions limiting the cover
for a specific term or range of illnesses are also available.
WILL I HAVE TO PAY INHERITANCE TAX? This will depend on the size of your estate, marital status and your existing arrangements, it is advisable to seek advice if your estate is in excess of £275,000 (2005-2006) the current 'nil' band for inheritance tax |
