Insurance and protection service
One of the fundamental cornerstones of financial planning is protecting your wealth in the event of death or ill-health.
One of the most common assurances taken out is life assurance which provides money if the insured was to die. They usually pay out a lump sum, or sometimes a regular income, upon death.
Policies are often put into trust to speed up their payout, ensure that the money goes to the appropriate person, and to help mitigate inheritance tax.
Most people who have a mortgage now consider taking out critical illness cover against the loan. If you were diagnosed with a specified critical illness, such as a heart attack, or cancer, the financial consequences can be catastrophic.
This insurance pays out a tax free lump sum just when you need it most. It is medically proven that people who suffer a serious illness are more likely to recover quicker if they have fewer financial liabilities to worry about in their hour of need. The money could be used for private medical treatment, to retire early, or to pay off liabilities such as a mortgage.
If you already have a policy, you should check the policy details as to the specific conditions that are covered, as this may vary between providers.
How would you continue to pay the mortgage and the bills if you have a long term illness? Income Protection provides a tax free income if you are unable to work due to ill-health. The policy can be set up in a number of different ways and is an important part of financial planning.