Life Insurance

What is it?

Life insurance allows you to leave a tax-free lump sum or income to your loved ones if you were to die or become terminally ill.

Why do I need this?

  • Many individuals and families have financial commitments that would still exist should an individual pass away, most commonly, a mortgage.

    If the main breadwinner were to die, it is important liabilities can be fully paid off, or monthly repayments maintained, to prevent a family needing to downsize in order to repay the debt.

  • Aside from repaying financial commitments, general day-to-day living needs to be funded. As children grow older, there may be further financial outgoings such as paying for school uniforms, extra-curricular activities and helping to fund university.

    If possible, a life insurance policy should cover not only the amount of liabilities, but an additional amount to help provide for existing and future outgoings. This will ensure loved ones can strive for a certain lifestyle and goals without being held back financially.

  • Whilst some of the payout will undoubtedly go on liabilities and living expenses, it would be helpful to have an amount set aside as a cash reserve to use when necessary.

  • If you have considered there may be a substantial inheritance tax bill for your estate when you die, taking out a life insurance policy will help your family pay this bill without having to sell possessions that may have personal value.

    The Financial Conduct Authority does not regulate taxation and trust advice.

 FAQs

  • The protection offered through your employment contract is only available to you as long as your remain in this employment. If you were to leave, you are essentially unprotected, putting you and your family at risk should anything happen to you.

    Therefore, considering this, and the payout amount needed, having your own life insurance policy is important to consider.

  • Yes! Although your spouse or partner may be earning, you contribute significantly to family life. You have a full time job caring for your children and running the household.

    If you were to die, childcare and maintaining the home will likely need to be carried out by a third party, and there is a cost to this. However, this cost could be covered by a life insurance payout.

  • If you are healthy and young, you are seen as a low risk prospect by insurance companies, so premiums for a policy are more favourable. However, each year you get older, the more expensive a premium will become.

    If you are unsure exactly what type of insurance policies are relevant for you, please don’t hesitate to get in touch and we’d be happy to help.

  • That’s where we can help. Send us an email or fill out the enquiry form in the Get in Touch section, and one of our advisers will be in touch.

Life Insurance policies have no cash value and will not pay out at the end of the policy term without making a valid claim. If premiums are not maintained the cover will lapse.