Life Insurance and Protection

PROTECTING AGAINST THE UNEXPECTED

Nobody likes insurance it is generally seen as a waste of money until the day you need it.

At Pure Financial Advice, we will discuss your requirements and identify any short falls in your arrangements, which will be based around your liabilities and the needs of your family and dependants in the event of a death or serious illness. It is normally recommended that any policies taken out are placed in trust for tax efficiency and so benefits can be paid out more quickly.


 

Term Assurance

It is designed to pay out a tax free lump sum in the event of death. It is one of the cheapest types of cover as it has a set term and if there is no claim during that term then the policy ceases and you do not get anything back.

Mortgage Protection

This is the same as Term Assurance except that instead of the amount of life cover remaining the same throughout the term it actually decreases each month and is therefore ideal to run alongside a repayment mortgage where the amount of the loan decreases each month. The cost of this type of insurance is cheaper than term assurance due to the reducing cover; however the premiums remain the same for the whole term.

Whole of Life Cover

This type of policy is designed to cover you during the whole of your life, therefore it has no specific term to it. Often this type of policy can be used to cover a potential Inheritance Tax Liability by placing the policy in Trust. In the event of death the death benefits will be paid out to the beneficiaries under the trust, and they can use the money to pay the tax bill.

Family Income Benefit

Family Income Benefit is designed to replace lost income in the event of death so that your family is protected against the loss of your income. In the event of your death the policy pays out a set amount of income for the remaining term of the life insurance policy enabling your family to maintain their standard of living.

Critical Illness cover

This is designed to make a lump sum payment in the event of you being diagnosed with a Critical – Serious illness. In such circumstances there is bound to be a financial effect on your family. The proceeds from the policy can be used to replace possible lost income, or alternatively to pay for private medical treatment that may not be available quickly or on the National Health Service. The policy covers for specific medical conditions and has set definitions of these illnesses. These definitions can vary from company to company. Critical illness cover can be built into your Life Insurance or taken out separately on a decreasing level basis over a defined term or a whole of life basis.

Income Protection or Permanent Health Insurance

You may due to accident or illness be unable to work for a prolonged period of time, Income Protection does as the name suggests, protects your income when you may have lost it due to accident or illness whether your employed or if you are self employed. You can take a policy that will pay in the regions of 50% of your regular earnings during a period when you are unable to work. This payment will continue until you either return to work, the policy term finishes or you die.