LIFE ASSURANCE
Life insurance provides financial security for your loved ones in the event of your passing.
Here are key options to consider:
Level Term Assurance
- Pays a fixed lump sum if you die during the policy term
- Available for individuals or couples
- No investment component or maturity value
- Tax-free benefit
- Fixed monthly premiums
- Cost-effective due to its straightforward nature
Decreasing Term Assurance
- Similar to Level Term, but the payout decreases over time
- Ideal for covering repayment mortgages or loans
- Lower premiums than Level Term due to decreasing coverage
Family Income Benefit
- Provides a regular monthly tax-free income to dependents
- Continues for the remaining policy term after your death
- Available for individuals or couples
Additional Protection: Critical Illness Cover can be added to these policies, offering extra security for severe health conditions. This can be term-based or lifelong.
Alresford Financial, Independent Financial Advisers (IFAs) are here to help you navigate these options, ensuring you receive expert advice and top-quality service tailored to your needs.
WHOLE OF LIFE ASSURANCE
Description: Provides lifelong coverage with no fixed term.
Key Uses:
- Covering inheritance tax liabilities
- Funeral expenses
- Protecting financial dependents
Key Features:
- Premiums can be guaranteed or reviewable
- Can include critical illness cover
- Available on a single life or joint life basis
Advantages: Guaranteed payout as long as premiums are met
Considerations: Higher premiums than term insurance; may need to review coverage periodically
CRITICAL ILLNESS COVER
Description: Pays out upon diagnosis of specified serious illnesses.
Key Features:
- Core conditions typically include heart attack, stroke, cancer, kidney failure, multiple sclerosis, major organ transplant, coronary artery by-pass surgery, and permanent total disability
- Can be standalone or combined with life assurance
- Available as term insurance or on a whole of life basis
Advantages: Provides financial support during treatment and recovery
Considerations:
- Coverage varies by provider; understand terms thoroughly
- Conditions must meet specific definitions to qualify for a payout
RELEVANT LIFE POLICY
Description: A death-in-service benefit for employees of small businesses.
Key Features:
- Tax-efficient lump sum payout
- Does not affect employee’s lifetime or annual pension allowances
- Must be placed in trust to avoid inheritance tax
- Written on a single life basis
Advantages:
- National Insurance savings for both employer and employee
- Premiums not considered a benefit in kind
- Claim proceeds not subject to income tax or corporation tax
Considerations:
- Complex eligibility criteria; seek professional advice
- No maturity value at the end of the term
ACCIDENT, SICKNESS & UNEMPLOYMENT (ASU) INSURANCE
Description: Protects mortgage payments or provides income replacement.
Key Features:
- Covers inability to work due to illness, injury, or redundancy
- Typical coverage: 12-24 months
- Deferred period: 4-52 weeks (some offer “back to day one” cover)
Advantages:
- Flexible coverage options
- Can split components (e.g., unemployment cover as an optional extra)
Considerations:
- Compare with Income Protection for suitability
- Benefits stop after the maximum period, even if you’re still unable to work
INCOME PROTECTION GUIDE
What Is It?
A policy that pays you regular tax-free income if you can’t work due to illness or injury. Typically pays 50-70% of your salary.
Key Features
- Payment Period: Until you return to work or reach retirement age
- Waiting Period: 4-52 weeks before payments start
- Premium Types: Fixed or adjustable rates
- Coverage Type: Can cover your specific job or any suitable work
Who Needs It?
- Self-employed people
- Those without good sick pay
- Main family earners
- People with large financial commitments
Benefits
- Long-term financial security
- Tax-free payments
- Flexible coverage options
- Coverage until retirement possible
Things to Consider
- Your job type affects cost
- Health and lifestyle impact premiums
- Longer waiting periods mean lower premiums
- Check what conditions aren’t covered
Different From
- Critical Illness Cover (one-time payment)
- Short-term sickness insurance
Tip: Talk to a financial adviser to find the right policy for you.
They can help you navigate the options, understand the fine print, and select the most appropriate policy for your circumstances.
Remember, the right Income Protection policy can provide invaluable peace of mind and financial security, allowing you to focus on your health and recovery should the unexpected occur.
Alresford Financial, Independent Financial Advisers (IFAs) are here to help you navigate these options, ensuring you receive expert advice and top-quality service tailored to your needs.
PRIVATE MEDICAL INSURANCE GUIDE
Insurance that covers private medical treatment costs. Lets you skip NHS waiting lists and choose when and where to get treatment.
What’s Covered?
- Hospital treatment and surgery
- Private rooms
- Choice of specialists
- Some outpatient care
- Tests and scans
What’s Usually Not Covered?
- Existing health problems
- Emergency care
- Pregnancy and childbirth
- Chronic conditions
- Cosmetic surgery
Key Benefits
- Faster treatment
- Choice of hospitals
- Private rooms
- Pick your own specialist
- Convenient appointment times
Cost Factors
- Age
- Health history
- Lifestyle (smoking etc.)
- Level of coverage
- Where you live
Ways to Reduce Cost
- Add an excess
- Limited hospital choices
- Six-week option (only use private care if NHS wait is over 6 weeks)
- Remove outpatient cover
- No claims discount
How to Choose
- Decide what coverage you need
- Compare policies and prices
- Check hospital lists
- Look at claims process
- Read exclusions carefully
Tip: Use an insurance broker to find the best deal for your needs.
Choosing the right insurance and protection products is crucial for your financial security. Each product has its unique features, advantages, and considerations. It’s essential to carefully assess your needs, budget, and long-term financial goals when selecting coverage.
For personalized advice and to ensure you’re receiving the most appropriate financial guidance, consider consulting with a qualified Independent Financial Adviser (IFA). They can help you navigate these options and find the best protection solutions for your specific circumstances. Alresford Financial, Independent Financial Advisers (IFAs) are here to help you navigate these options, ensuring you receive expert advice and top-quality service tailored to your needs.
