Why do I need protection plans?
Protection is as much about helping to safeguard your lifestyle as it is your assets and the roof over your head. Have you thought about what you’d have to sacrifice if you had to stop working due to a serious illness or injury, or you or your partner died or were diagnosed with a critical illness?
Also in later life you will need to consider how to protect your “Estate” from the potential effects of Inheritance Tax (essentially a “voluntary tax”).
We can help protect you, your family and/or business partners through life’s difficult times and can tailor plans to help suit your own personal individual needs and personal circumstances.
Insurance and Protection
We will review your current situation including any plans and cover already in place and make recommendations as to the most suitable and cost-effective type of cover available.
Where applicable we can ensure that any plans are written in the most tax-efficient manner by using the appropriate plan and trust documentation.
Before cover can start you will need to complete an application form, be medically (and possibly financially) underwritten and offered terms by the insurance company. Cover will only remain in force whilst you maintain the premium payments. Generally (but not always) there is no investment element and the plans will cease without value if cancelled or at the end of the plan term if a claim has not been made.
There are many types of life assurance and protection plans available in the UK designed to cover:
- Death – to pay a tax free lump sum or income on death during the plan term
- Critical Illness – to pay out a tax-free lump sum assured upon diagnosis of one of many stated serious life- threatening critical illnesses
- Income/Salary Replacement – to pay a tax-free income if you are unable to work for a prolonged period of time
- Private Medical Insurance (PMI) – to cover the costs of private hospital medical fees and care (as an alternative to the NHS)
- Inheritance Tax – generally designed to pay a tax free lump sum on 1st or 2nd death equal to the Inheritance Tax liability (“bill”) on the deceased’s Estate to the beneficiaries of the Trust.