Whilst it is generally accepted that insuring our cars, homes and holidays is a must, the majority of people don’t insure the most important thing; their health and families.  

Do I need life insurance? 

On average more than 1,400 people die everyday in the UK. This is a very sombre statistic but it shows how vital it is to consider what your financial arrangements would be should the worst happen. 

It is important for anyone who has dependants (anyone who would be affected by your death) to get advice on the suitability of life insurance for them. Everyone has their own individual circumstances and the value and type of life insurance needed will vary from person to person. 

Life insurance plans can provide for you and your family in a number of different ways should you die, such as: 

  • repay any debts you owe such as a mortgage, 
  • provide an income for your family, 
  • pay a lump sum to help with funeral costs, 
  • provide a fund for school fees 
  • pay the inheritance tax due on your estate 
  • and many others  

How much does it cost? 

This is a difficult question and the answer will vary depending on lots of factors. As there are so many different options for life insurance giving any sort of general indication would be totally irrelevant. However, generally it is much cheaper than people think. It can cost as little as a couple of beers down the local! 

Life insurance can be a very inexpensive way to protect yourself and your family against the worst. Give me a call today to discuss your options

Income Protection Insurance 

If you had a machine in your home which, once a month, gave you £1,000 would you get it insured? Of course, you would. Well that is Income Protection Insurance, and you are that machine. Just imagine if you had an accident or illness that meant you could no longer do your job. How would you pay your mortgage, bills and keep yourself and loved ones clothed and fed? 

It’s not a nice thought but these things happen every day. According to study from Legal & General if you had to stop work due to illness the average person’s savings would last 32 days. Nearly 50% of people said their savings would run out in a week or less. How long would your savings last? 

Income protection insurance can give you the peace of mind that if something were to happen to you your income will still be paid.  

How much cover is right 

This is a difficult question and the answer will vary depending on lots of factors. The maximum that most providers will allow you to cover is typically between 50%-75% of your taxable income, less any state benefits.  

Tailoring your protection to meet your circumstances 

There are many different variables when it comes to Income Protection from how long you have to be unable to work to make a claim, to how long the claim will pay out for. It is important that you assess all the options and choose the right plan otherwise you may find that you are not protected when you need it. These different options will have differing affects on the premium and so it is often a good idea to set a budget and tailor the plan to suit. 

Give me a call today to discuss how I can help you get the right protection. 

FAQs

How much cover do I need?

This question is impossible to answer without knowing your full circumstances. It very much depends on your income, expenses, assets, debts and other factors. It also depends on what it is you want the insurance to achieve. I find it is normally a good starting point to think about the position you to leave your family in should you die or become ill.

How much does it cost?

This very much depends on the individual as well as the type, term and how much insurance you need. Some of the factors that affect the cost are:

  • Your age
  • State of health
  • Medical history
  • Any dangerous hobbies and
  • Family history

I can usually get a quote very quickly so why not give me a call to find out.

What is covered?

This depends on the policy you take out. If it is purely life insurance than it will only pay out if you die. Although, some policies may pay on diagnosis of a terminal illness and you have been told you have less than 12 months to live.

If you have a critical illness policy then the insurer will have a pre-determined list of illnesses and disabilities on the diagnosis of which your policy will immediately pay out.

Income protection will only pay out if you have an illness or accident that has caused you to stop working. This will pay out after an initial period which you will have to choose when you start the policy.

How much should I spend?

I am a strong believer that everybody spend at least £40pm on life or income protection. This is roughly equivalent to the average car insurance policy, and I would argue that you and your family are more important than the average car.

However, this is not a hard and fast rule and the amount of cover that you need should be carefully considered. Talk to me today and I would be happy to talk through your options.

Could I already have some cover?

Yes. Some employers offer life insurance as part of your benefits package. It may be worth taking this into account when calculating how much cover you need.

You may also have purchased some life cover previously. If so have a look through any old paperwork or your bank statements to see if you are still paying.

How can life insurance be used for inheritance tax?

Life insurance can be purchased for the purpose of paying any inheritance tax bills when you die. This can mean that your beneficiaries are able to inherit the full value of your estate. This is a complex area and this strategy may not be right for you so it is important that you take advice.

Should my company take out life insurance?

There are many situations in which it can be beneficial for a company to take life insurance on it’s employee’s or shareholders. If this is an area you would like to discuss, have a chat with me today.

Areas I Cover

Based in Southampton the majority of my clients are located in Southampton, The New Forest, Lymington, Winchester, Lyndhurst, Chilworth, Romsey, Hamble, Netley, Sarisbury, Locks Heath, Whiteley, Hedge End, Botley, Fair Oak, Wickham, Twyford, Otterbourne, North Baddesley, Wellow, Beaulieu, Diben Purlieu, Brockenhurst etc.

I also travel to clients in Ringwood, Bournemouth, Salisbury, Andover, Portsmouth, Chichester, Guildford, London, Basingstoke, Oxford and further.

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