Life Insurance
Most people will take out Life Insurance as the easiest way to guarantee your family will be protected financially, should the worst case happen.
The most common type of policy is a Level Term Assurance. This will pay out a lump sum of money in the event of the death of a life assured during the term of the policy. Most Families use the lump sum to pay off large debts such as a mortgage and to provide money to live on after your death. The lump sum benefit you or your family member will receive is paid tax-free and contributions are paid on a monthly basis and remain the same throughout the whole term on a guaranteed basis unless you have selected inflation proofing.
You will be surprised at how little it costs to give you and your family a financial safety net. The Life Cover Policy you take out has no cash-in value; it’s a protection policy only. If you stop making payments, your cover will end and you will not get anything back.
Working with our experienced Independent Financial Advisers to guide you through the process, you will decide how much life cover is required to cover you and family members and agree how many years the policy will run for, known as the “term”. This type of life cover is a cost-effective method of providing protection for you and your family.
Having life cover in place can help ease financial burdens at a particularly difficult time.
Mortgage Protection
The majority of homeowners will have a mortgage on the property they live in or rent out. For most people this is the largest investment we make during the course of our lives.
It is, therefore, important to protect ourselves with Mortgage Life Assurance, also known as Mortgage Protection. This is an insurance policy that is designed to pay off your mortgage if you die before it is repaid. It is crucial for any homeowner to have this type of mortgage protection in place if you don’t want to risk your partner having unaffordable mortgage payments in the event of your death.
It is often best to insure both partners at the same time. Even if the significant income earner survives their partner, the lifestyle change could affect their future ability to earn enough to cover the full cost of the mortgage repayments.
Family Income Benefit
Family Income Benefit provides a fixed tax-free income, if the policyholder dies within the term of the policy. This is generally a low-cost policy and can replace loss of earnings of the life assured. The policy will pay out a regular income on the death of the policyholder. It will continue to be paid until the end of the fixed term of the policy.
Contact us at People and Business to discuss your needs. Click here