PERSONAL PROTECTION

You’ve insured your house, your car, and even your possessions – but what about you? More specifically, have you thought about what might happen if you lose your main source of income?

If you are unable to work because of long-term ill health or a disability, you could be left with a significant financial burden. Income protection insurance is designed to provide a regular monthly benefit that covers your loss of earnings during the cover term. Even if you are not in paid work, you may be able to claim if you are unable to carry out two to five specified day-to-day activities.

Different products offer different terms and benefits. For example, you could choose fixed term cover, or opt for a longer deferment period. Speak to us today for help choosing a suitable income protection policy. 

Nothing can replace a lost loved one, but this type of life cover will pay out a lump sum or annual benefit with Family Income Benefit during the cover term. The money can be used to replace lost future income, giving back a feeling of security to dependants. 

If it makes sense to do so, you can select cover that will pay out a benefit if you become terminally ill or are totally and permanently disabled, giving your family the provision to cope better and maintain an element of control at an otherwise difficult time.

Critical illness insurance will help protect you and your family from financial hardship if you fall ill. By adding life cover, you can also make sure your dependants are provided for if you should die during the policy’s term.

As well as paying a tax-free lump sum (or annual benefit with family income benefit), many critical illness policies will pay out the sum assured if you suffer or undergo one of a number of specified illnesses or operations, or if you are diagnosed with a terminal illness. Payment will normally be made if you are diagnosed with a terminal illness with a life expectancy of no more than 12 months. Please note, this cover is not normally available in the final 12 months of the plan. Additional services are often available, depending on the provider and the plan you have chosen. 

If you have children, you may have thought about giving them some money during your lifetime to help them follow their dreams or live a more comfortable life. However, there may be tax implications for gifting sums of money. For example, gifts may only be free from inheritance tax (IHT) if you, the donor, survive more than seven years after making the gift. If you die within those seven years, the money may be liable to IHT depending on your circumstances.

For help protecting this money and minimising any liability, you can set up a gift inter vivos policy. This involves taking out cover and placing this under Trust for the benefit of your children. Premiums are set at the start of the plan and will not change during the term of the policy.