The first consideration should be protecting your loved ones should you die prematurely and leave behind financial dependants. Life cover is one of the cheapest ways to protect your family’s finances if the worst happens.
Term assurance is the most cost-effective form of life cover and can be set up to provide protection for a set period (or “term”) or for the whole of your lifetime. The level of cover is decided at outset and can be set up to pay a benefit tailored to your requirement – be it decreasing (for example in alignment with a repayment mortgage), increasing (to keep track against inflation) or a regular income (to replace the loss of your salary).
An addition to term assurance is critical illness cover. Due to medical advances over recent years, there are better survival rates for illnesses that once were considered fatal. This form of protection can be implemented as standalone cover, providing a lump sum that can be used to improve the quality of the individual’s life or to meet any financial commitments.
Life assurance and critical illness can be combined into one plan with the sum assured being paid out if the life assured passes away or is diagnosed with a predetermined critical illness within the set policy term.
Income protection is an insurance that will protect your monthly income in the event of ill health. It ensures that you are still able to meet your monthly outgoings if you cannot work for a long period of time by paying out a monthly salary until you return to work.
All benefits from a term assurance and/or critical illness contract are tax free. Placing the benefits in trust will ensure that, in the event of death, the monies are passed directly to the beneficiaries whilst also avoiding probate. There are various forms of protection available and it is dependent on your personal circumstances as to which one you opt for.
Our advisers at Deep Blue Financial Ltd will work with you to ascertain your requirements in the most appropriate and cost-effective manner, providing peace of mind that you and your loved ones are protected.
Providing you and your family with financial security in a time of uncertainty is often an area of financial planning that is overlooked. A common misconception is that the State will provide if you have not made provisions.