There are many products in this arena that are designed to protect you and your family or to ensure your business can continue despite any unforeseen circumstances We detail below a few of these products:
Life Protection provides basic cover for your family if you die during the term of the policy. It normally provides a lump sum on death but there are plans that can provide a monthly income instead and this can be a cheaper option to the lump sum option.
It isn’t expensive unless you have some medical conditions that could mean you will still get cover but that the premiums may be higher.
It is a valuable benefit as it gives you and your family peace of mind regarding the financial implications of your death.
For example it can be used to pay off a mortgage and other loans, help with children’s university fees. It can also provide an income that will allow the surviving spouse to look after the children without the financial worries that not working usually brings.
You should be aware that if you do not die during the term then the cover will stop and the policy has no value.
Life insurance cover is also a valuable benefit for businesses where you can insure key personnel to provide funds that will allow the business to continue if the key person dies. You can also use life insurance to provide funds that would allow a business partner to purchase the deceased partner’s shares from their family if the family did not want to continue with the business.
Whole of Life policies
This is a more expensive alternative but it does provide cover for the whole of your life and can have an investment element included if the plan is stopped.
Critical Illness cover
You can insure against a range of critical illnesses such as heart attack, cancer or a stroke. A lump sum is payable if you have one if these illnesses within the term of the product. Critical illness is usually linked to a life protection policy as described above but you can have a stand-alone plan.
This is extremely valuable if you are not paid when you are off work for a prolonged period and is particularly valuable for the self-employed. An income can be paid during the period off work that will help you meet your financial commitments.
These are only a flavour of the products that are available. Everyone probably needs some form of protection so it makes sense to seek professional advice to help you find the most suitable plan for you, your family or your business.
If you already have some form of protection there could be an opportunity to provide the same level of cover for less money or provide more protection for the same money.
If your plan wasn’t arranged by an independent financial adviser there is a good chance that you are paying more than you need to.
If you need advice about protecting your family or your business please contact us.