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Be prepared for the unexpected Protecting you and loved ones with financial support during difficult times. In previous issues I covered Retirement Planning, and Investments. Here I’ll focus on Personal and Business Owner Protection options and the possible steps you can take towards minimising any negative financial impact due to being unable to work in the event of accident, illness or death. We never know what’s around the corner and it’s important to consider the risks and be prepared if things don’t go to plan. Taking out insurance is perhaps the most effective way to secure yourself financially.
Options available Term life insurance/family income benefit
This will be cover for a certain period of time and beneficiaries will receive a pay out if you die within the specified term. This type of plan is suitable for where you want to leave a lump sum or regular payments i.e. provide while children are young. This can be taken as a decreasing plan where your pay-out decreases over the term mirroring the decreasing outstanding capital. These policies are usually cheaper and often used to cover a debt that reduces over time, such as a loan or repayment mortgage.
Whole of life insurance
This covers the plan holder for a fixed sum for life. Providing premiums are paid it will pay out. It is commonly used for inheritance tax planning purposes where other methods have not been suitable. This type of plan can also be used towards funeral planning.
Income protection
How would your family manage financially if your income stopped? This type of cover pays out if you’re unable to work
for policy specified reasons. This is ideal if you are the main or sole income earner and is considered an important protection need for young and growing families.
Critical illness cover
This pays out a cash lump sum if you’re diagnosed with a critical illness or income protection can provide regular payments. This type of cover can be added to a life insurance plan and can vary widely between insurers. The above touches the surface of personal cover, those of you who may be unfortunate to experience these types of events will appreciate their value. We can also process business cover needs i.e. business life insurance to provide key person, shareholder or partnership protection. We can review any existing arrangements to ascertain their suitability, as over time changes in circumstance should be reflected on the products held. Some areas may be covered by employers as employee benefits so to discuss what an employer provides is a starting point. Other factors to consider are age, medical history, occupation, health status, whether the plan is best suited as single life or joint, what your budget is and even if a Trust is required. This is where we can help and give peace of mind and navigate your options.
Why choose Brooks Wealth?
We treat every client as an individual and tailor their journey with financial professionalism and a leading personal service. When it comes to Protection planning we have access to independent IFA research tools that allow us to offer the most relevant and best value.
Call 01733 314553 to arrange a no fee, no obligation meeting with Sharon.
Sharon Kumari DipFA MLIBF Independent Financial Adviser T: 01733 314553 | M: 07862 250454 E: sharon@brookswealth.co.uk
Issued by Sharon Kumari of Wealthline Ltd, authorised and regulated by the Financial Conduct Authority FCA number 684319 (registered office: 8a Cowgate, Peterborough PE1 1NA). Past performance is not a reliable indicator of future results and any forecast is not a reliable indicator of future performance. The Information contained in this editorial should not be construed as offering investment or tax advice.