It may be one of those jobs you’ve been meaning to tick off your to-do list for a while. Life Insurance sounds complex so how can you keep it simple? Don’t delay – making sure your dependants are provided for should anything happen to you, must be a financial planning priority.
The statistics indicate that one in 29 children will lose a parent before growing up. The loss experienced by a family when someone dies is incalculable. From a practical perspective if the main breadwinner passes away, this is likely to be compounded by the loss of income. Similarly, the death of a partner who doesn’t work has its own financial implications, especially where dependants are involved. Fortunately, life cover can provide an affordable solution.
GETTING THE RIGHT COVER
There are numerous life cover products available.
- A straightforward level term life insurance policy, where a pre-determined lump sum pays out on death (or under many policies if diagnosed with a terminal illness) within a stated period of time – is among the simplest and most affordable solutions.
- It is usually recommended that life cover protection should provide ten times the main breadwinner’s income. This is paid tax-free, but is added to the deceased’s estate. The policy can be written in trust if there are IHT implications.
- The level of cover should be calculated considering numerous factors including any outstanding debts (including mortgage), regular outgoings, potential education fees and inflation.
- The term should reflect the needs of your dependants; children will require financial protection until they leave full-time education and a partner may need the cover to last until pensionable age.
JOINT OR SINGLE COVER?
- A joint policy will cover the lives of yourself and your partner, paying out once on the first death within the policy term.
- Both partners can arrange separate single life policies, which is usually more expensive but would potentially provide two payments.
It’s important to be transparent about your lifestyle, especially if you have pre-existing medical issues.
Our professional experienced Financial Advisers are the experts when it comes to Life Insurance and can help you find an affordable policy for most circumstances. For help and guidance, and to understand more about the options available to you, please call Logic Wealth Planning on 0808 1234 321 to arrange an appointment. Your first meeting with us is free of charge and without obligation.