When dealing with your finances, protecting your wealth is just as important as helping you manage and grow your wealth. How quickly do we look to insure our personal items such as our cars, mobile phones, household appliances and even pets? Yet, there is one area that is so often overlooked; the one thing on which all of our possessions and standard of living rely on....ourselves.
Unanticipated events such as bereavement, life threatening illnesses, accidents or redundancy can easily threaten our financial security and our living standards. Imagine how your family would cope if you were to die prematurely or be diagnosed with a life threatening illness such as cancer? What impact would such events have on their lifestyle? For us, insurance planning for you and the family lays the foundation for sound financial planning and wealth management.
Term Assurance pays a lump sum of money in the event of death during the term of the policy. This could be a level term assurance policy typically used for family protection purposes, where the sum assured remains constant during the term of the policy or a decreasing term insurance policy typically used to protect a debt, most commonly a mortgage, where the sum assured usually decreases over the term of the policy usually in line with the debt.
Family Income Benefit works the same as term assurance but instead of paying a lump sum of money upon death, it will pay a regular monthly tax free income in the event of death to your dependants up until the end of the term of the policy.
This policy provides cover for your whole life and typically pays out on death whenever it occurs. Usually, the premium and cover is reviewed on a periodic basis. For example, it may be used for inheritance tax planning, to pay out the sum assured on death to meet the tax liability.
Critical illness is a difficult subject. We all think it will never happen to us, but the reality is, 1 in 4 of us will suffer such an illness before we reach age 60 often with disastrous consequences to our finances. Yet the majority of us are so unprepared. Such an illness may impact on your ability to meet mortgage payments or affect your standard of living. This cover pays a lump sum of money on diagnosis of a specified illness such as cancer or heart attack. It is also available on a level term basis, typically for family protection purposes or decreasing term basis used to protect a debt, most commonly a mortgage.
Income protection provides a regular monthly income replacement benefit should you suffer loss of income due to an accident, sickness or redundancy. There is a growing income protection gap developing, as the financial burden on employers and the State increases.
Ever thought how you would meet mortgage or rent payments, loans, bills, monthly mobile phone bill or the sky subscription should you or the main income earner were to suffer a loss of income? Income Protection will keep a regular income coming in while you recuperate and concentrate on getting well again or in the case of unemployment are able to find another job.
There are other providers of Payment Protection Insurance [Short-Term Income Protection] and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk.
Please feel free to contact us for more information on the above or on all your insurance planning options.
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First Alliance Financial Services
Millenium Bridge House
2 Lambeth Hill
0203 0123 237