What is Life Insurance?
Life Insurance is a simple, cost-effective way of making sure your debts are covered and/or your family is provided for financially if you die. Life Insurance can be used to cover mortgage repayments, to pay off debts, to fund funeral costs or for the general living expenses, your family will have, such as the weekly food shop or education fees.
Life Insurance comes in a variety of forms, with differences in how and how much your policy will pay out. Therefore, it's important to be sure what type of life cover you require before you compare quotes. See below for a little bit more about the types of life insurance we offer. We would always advise having your policies payout into trust, this ensures the funds go directly to the beneficiaries without delay and also keeps the sum assured outside of your estate for Inheritance tax purposes. All life insurance and Critical illness payouts should be tax-free, they become taxable if the funds pay into the estate and take the estate over the inheritance tax threshold then your estate ends up paying 40% tax on so benefit that should be tax-free.
- Term Assurance will pay out a lump sum on death during the term of the plan.
- Critical illness pays out if you suffer one of the critical illnesses listed in your plan.
- Business insurance, to protect a shareholding. This provides a lump sum to the business that can be used to purchase shares from a deceased director, ensuring the deceased directors family are compensated and the business can retain the shares.
If you would like more information on Insurances we will refer your details to one of our preferred partner firms who are qualified and regulated to give fully advised and recommended advice.