INDEPENDENT FINANCIAL ADVICE CENTRE

Authorised and Regulated by the Financial Conduct Authority

97 High  Street

Billericay

Essex

       CM12 9AJ

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01277 630873

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Your Home is at risk if you do not keep up any mortgage or payments secured upon it!

You should remember that past performance is not necessarily a guide to the future. Market and currency movements may cause the value of units, and the value derived from them, to fall as well as rise and you may get back less than you invested when you decide to sell your units. The tax treatment of investments and pensions is not guaranteed and may change in the future.  

LIFE COVER

What type of cover do you need?


Term Assurance: Level Term Assurance is the most basic type of life assurance. For fixed monthly payments, the amount of life cover - also known as the sum assured - is guaranteed for a fixed term. The fixed lump sum amount is paid out if a claim is made during the term.

 

Mortgage Protection Insurance: With Mortgage Protection Insurance also known as Decreasing Term Assurance you pay a fixed monthly premium but, instead of the cover remaining level, it gradually reduces over the term of the policy. It is most commonly used together with a repayment mortgage and the sum assured reduces broadly in line with the amount outstanding on the mortgage over the term. The reducing cover means that the cost of this type of policy is lower than that of Level Term Assurance.  


Family Protection Plan: Rather than paying out a lump sum should you claim during the selected term, a Family Income Benefit policy pays out a regular tax free income (UNDER CURRENT LEGISLATION) for your dependants  


Benefit type?

Death Benefit Only A payment of a lump sum upon the death of the life assured.


Critical Illness Only: Also called as "dread disease" cover. Such policies can be stand alone or written as an add-on to term assurance. They will pay out a lump sum in the event of a qualifying illness being diagnosed e.g. certain cancers, heart disease or multiple sclerosis.


Death or Earlier Critical Illness Pays out a lump sum, so that the life assured is protected for both death or critical illness. The policy pays out on the first event and then ceases.


Benefit Amount:

This is the amount you would like to be payable on death or earlier critical illness.

There are various methods used to calculate the amount of life & critical illness insurance needed, however, as a guide, we would generally recommend that a sum assured equal to your annual salary multiplied by the number of years the cover is required, plus all outstanding liabilities, minus any existing life & critical illness insurance, savings etc.


Do you want waiver of premium cover?

Spending a small extra amount on waiver of premium cover means that you have the comfort of knowing that your premium payments will continue to be made in the event of long term ill health either through sickness or an accident.


For help with your life cover planning, contact us