Most of us recognise the need to protect our dependents and understand how life insurance can help. The most common reason for investing in life cover will be to protect against the financial burden of mortgage payments but it is also part of the review we undertake perhaps after getting married or, more likely, when we have children.
No one knows what the future holds, but if you were to die, how would your family cope financially? Could they pay the mortgage and other household bills? What about childcare costs? Having enough life assurance in place could help ease the financial strain on your family at an already difficult time.
There are a number of different types of life assurance which can produce one off lump sums, to pay off debts or provide a nest egg for future expenditure. These types of policies are level term or decreasing term life assurance policies. Alternatively there are insurance policies that will provide regular income for a specified term to replace lost salary or enable a house parent to remain at home to look after children rather than having to find work or allow a working parent to provide care at home whilst they continue to work. These types of products are known as family income benefit policies.
When recommending life assurance cover for families and individuals we attempt to identify the most suitable and cost effective solution for our clients. This may entail a number of policies running for different terms to cover liabilities that will only exist for a certain length of time e.g. mortgages, personal loans, and school or university fees or policies to cover child care, replace salary or provide a nest egg, rather than just one policy running with a fixed sum assured for a specific length of time which inevitably will not provide the correct amount of cover at the right time and will inevitably cost more over the whole term of the policy.
The above situations are the most common uses for life assurance but it can also be used in Inheritance Tax planning to provide lump sums to pay any potential IHT charge.
At M.D. Beckett Financial Services we are totally committed to finding the best answer to your individual life assurance needs and will design the most appropriate solution for your specific requirements. We can advise and guide you through the process of choosing the best cover for yourself, your employees and your business.