Insurance & Protection

People take out a life insurance policy for various reasons. Still, the fundamental underlying motive is to ensure that funds are available in the event of the death of someone who has a financial responsibility to someone else.

Life insurance will provide a sum of money in the event of death during the policy term. This cash lump sum is paid tax-free and can be used by your dependents however they choose.

Life insurance can be used to cover a mortgage other loans or ensure that your family is financially protected in the event of death.

What is Life Insurance?

 A life insurance plan can come in various forms, including decreasing, level or increasing. It covers you for a fixed period of time and pays out a lump sum if you die during the policy term. 

With some life insurance policies, you can add additional options, such as critical illness cover. If you do add on critical illness cover, the plan will pay out once on diagnosis of a qualifying critical illness or if you die during the term of the policy.   

A Critical Illness plan is organised to pay out a tax-free lump sum if you’re diagnosed with or to undergo surgery for certain serious illnesses. The lump sum pay-out could be used for any purpose, including mortgage, private medical treatment, or simply to make memories with your loved ones.

What is Critical Illness Cover?

The policy pays out upon specified critical illnesses, such as cancer, heart attack or stroke and many more.
It is often ‘bolted on’ to a life insurance policy as an additional benefit or can be set up as a standalone plan.

Most families, couples or co-habitants rely on at least one month salary to cover regular household spending.
How would your household replace this if one partner died? 

For peace of mind, many people choose a type of family life insurance called family income benefit. 

What is Family Income Benefit?

It is designed to replace your income and protect your family’s finances in the event of your death if you die within the period of the policy. Instead of paying out a lump sum, the policy will pay out a monthly tax-free income to your loved ones until the end of the term. 

You choose how long you require your family income policy to last, for instance, until your children are financially Independent or until your mortgage has been repaid.

With Family Income benefit, the risk to the insurer decreases with every year there isn’t a claim. If you chose a 25 years term and passed away a month into this term, the payments would begin from the date of death through to the end of the term. If you passed away 20 years into the term, the payments would again begin from the date of death but only payout for the remaining term of the policy

An Income Protection plan pays out a set amount of income after a specified period if you are unable to work due to an accident or illness. You can elect a deferred period of between one and 12 months. The longer you defer, the cheaper the policy.

These types of plans can continue to pay out an income as long as you cannot return to work or until the end date of the procedure (typically your normal retirement age). 

What is Income Protection?

Income Protection is for anyone who is working (employed or self-employed). Even if your employer provides sick pay, it is unlikely to last for longer than twelve months; therefore, ongoing protection is essential to ensure you can still cover your monthly outgoings, whether you rent or own a property.

Plans can be adapted to fit in with any existing protection you might have.

The premiums are based on age, health, amount covered, policy term, deferred period, and whether you're a smoker or non-smoker.

There are many reasons to consider putting your life insurance into a trust, including protecting your beneficiaries from inheritance tax or helping to avoid probate.

Did you know that the money you leave to your loved ones from a life insurance policy may be subject to inheritance tax as it is included as part of your estate?

Trusts can be arranged in many ways and specify precisely how and when the assets pass to the beneficiaries.

By placing your life insurance policy into a Trust, you can help make sure that your beneficiaries avoid inheritance tax so they can receive the money you intended to leave them. 

Whether you are buying a property to live in or rent, you have obligations to ensure the structure of the property you purchase is insured (Buildings Insurance) against such risks as fire, flood, storm and subsidence.

This also covers permanent fixtures in your home such as fitted kitchens and bathrooms as well as walls, doors, windows and roofs. Your cover is based on what your home would cost to rebuild.

Contents Insurance covers the things that make your house a home; furniture, carpets, clothes, electronics and personal items.

How Much does Buildings and Contents Cover cost?

The cost of your cover will depend on lots of factors.
These Include:

• The amount of cover you need.
• The value of your home and the things in it.
• The number and value of any high value items listed in your policy.
• The amount of excess you agree to pay.
• Whether you have claimed before or not.
• The postcode for the property.