Life insurance
Having the right type of life assurance or family protection, held in the right way, is of vital importance. Imagine starting a life insurance in good faith, only for your beneficiaries to find out after your death that they have to pay 40% of the benefits on inheritance tax.
By speaking to a professional adviser the right policy for your circumstances, arranged in the correct way, can make all the difference.
Below are common types of life assurance policies, explained in an easy to underand way.
If you'd like to know more about life insurance then contact us today.
Level Term Assurance
This type of plan is normally arranged over a set number of years, to pay a lump sum specified at the start of the policy. these benefits can be arranged to increase annually, should you wish them to be. Level Term assurance is great for providing a set lump sum at any stage of the plan life, a disadvantage of this is that it makes the life cover provided quite expensive.
Family Income Benefits
This type of life assurance is usually arranged to provide an income for the beneficiaries for a set number of years. Plans are normally arranged by families to protect aganst a loss of salary of a loved one or to protect school or university fees.
As the income is for a set number of years the cost of cover is less expensive than a level term assurace plan, as once the remaining term has expired the income ceases.
Decreasing Term Assurance
This type of lif assurance plan is normally used to protect a repayment mortgage and decreases in line with a set level of interest. this ensures that should you die during the term of the plan your mortgage is repaid.
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