Life Assurance & Income Protection
Protection need not be expensive; too little protection is inadvisable but equally, too much protection which takes up too much of the monthly budget is also inadvisable.
Life Assurance (payable on death) is particularly useful in the following situations:-
- Where loans or mortgages exist.
- Where the death of a key worker would cause the business severe problems.
- Where partner’s or shareholder’s next of kin need to be bought out in the event of the death of a partner or shareholders.
- Where Inheritance Tax (IHT) becomes payable on the death of an individual.
Life assurance policies written in trust for beneficiaries can be exempt from IHT and enable such monies to bypass executors and pass straight to beneficiaries.
Income Protection (payable in the event of permanent disability) is essential if the main breadwinner wants to protect his or her salary in the event of serious injury or illness. The cover needn’t be expensive if a suitable excess (for example, no payout in the first 6 months) is put in place. Don’t overlook the importance of this simple insurance – we have come across situations where it has literally saved lives (financially!).
Critical Illness (lump sum payable in the event of diagnosis of serious illness).We particularly recommend this insurance cover when income protection is not achievable.