Life Assurance

Life Assurance Explained

There are many forms of life assurance. Choosing the right one for you can depend on a number of factors including tax, cost and protection required.

Protection options available are:

  • Whole of Life
  • Term Assurance
  • Business Protection, Keyperson Cover, Relevant Life
  • Mortgage Protection
  • Family Income Benefit
  • Critical Illness Cover

Life assurance can be used to protect income, loved ones, and your business and in special circumstances can be arranged in such a way as to minimise the effects of tax.

This is a brief guide to give you a basic understanding of what cover is available, however, this information is only an overview and only an experienced adviser following a full review of your circumstances, will ensure that you find a solution that provides peace of mind.

There are several ways in which to protect yourself and your family in the event of an untimely death. Most people take out life insurance to provide for their families and alleviate any financial worries at a difficult time.

Life Assurance Options

Level Term Assurance

Pays a level lump sum in the event of death during the term of the policy. There is no investment element within a term assurance contract so at the end of the term there is no maturity value and life cover lapses. In the majority of cases, the benefit is paid tax free, but please note proceeds of a life insurance policy can be subject to Inheritance Tax if the policy is not set up correctly.

Decreasing Term Assurance

Works similarly to Level Term Assurance, but the benefit set at outset gradually decreases over the term of the policy. These policies can be used as cover for a repayment mortgage, or other loans where the amount of capital outstanding also decreases over time. Because the benefit reduces over time, premiums are kept very low but do not reduce.

Family Income Benefit

Works the same as term assurance, but instead of paying a lump sum upon death, it will pay a regular monthly tax free income to your dependants in the event of death up until the end of the term of the policy. (Please note: the proceeds of a life insurance policy can be subject to Inheritance Tax if the policy is not set up correctly).

Make an appointment today to discuss your Life Assurance Cover with us.