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Protecting you and your family

Providing financial protection for you and your family

Change is inevitable. It’s just a part of life.

Some changes you can predict, while others you simply cannot, which is why financial protection is so important, including critical illness insurance, life insurance, lasting power of attorney and making a Will. However, you can have a plan in place to help mitigate the impacts and protect your wealth should something change in your life, like your career, your health or even your family situation.

Financial protection planning is all about preparing for the unexpected. A thorough protection review can give you peace of mind that following illness, injury or worse, you can still provide for yourself, your family and your business if relevant.

We will help you ensure you have the financial protection most suitable for your circumstances.

Why do you need protection?

It’s easy to underestimate our own value. We insure our homes, cars, valuables and pets, but often we forget about life protection and insuring our income that provides for all of the above.

Have you ever thought about how quickly your life and circumstances can change? One of the many things the past few years has highlighted is that the unexpected can happen at any time, to anyone, and that it’s really important to have a financial safety net and financial resilience in place just in case.

Life insurance and mortgage life insurance

Life insurance will help you financially protect your family.

Whether you are looking to provide a financial safety net for your loved ones, moving house or a first-time buyer looking to arrange your mortgage life insurance, or simply want to add some cover to what you already have in place, you will want to make sure you choose the right type of cover.

There are different types of life insurance, term life and whole of life insurance including level term insurance, increasing and decreasing term insurance.

Paying Inheritance Tax

Whole-of-life insurance policies can be a useful way to cover a future Inheritance Tax bill. If you think your estate will have to pay Inheritance Tax when you die, you could set up a whole-of-life insurance policy to cover the tax due, meaning that more is passed to your beneficiaries.

To ensure the proceeds of the life insurance policy are not included in your estate, though, it is vital that the policy be written in an appropriate Trust. This is a very complicated area of estate planning and you should obtain professional financial advice.

A whole of-life insurance policy has a double benefit – not only are the proceeds of the policy outside your estate for Inheritance Tax purposes, the premium paid for the policy will reduce the value of your estate while you are alive, further reducing your estate’s future Inheritance Tax bill.

Critical illness insurance

Extra protection for you and your loved ones.

Critical illness cover can help minimise the financial impact on you and your family if you become critically ill. It’s an option that can also be added for an extra cost to some life insurance policies.

Surviving financial hardship

After surviving a critical illness, you may not be able to return to work straight away (or ever), or you may need home modifications or private therapeutic care.

It is sad to contemplate a situation where someone survives a serious illness but fails to survive the ensuing financial hardship.

If you are single with no dependants, critical illness cover can be used to pay off your mortgage, which means that you would have fewer bills or a lump sum to use if you became very unwell.

If you are part of a couple, it can provide much-needed financial support at a time of emotional stress.

Income protection insurance

Being unable to work can quickly turn our world upside down, as we’ve seen for thousands of people during the coronavirus (COVID 19) pandemic crisis.

Income protection insurance is a long term insurance policy that provides a monthly payment if you can’t work because you are ill or injured.

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Long term care insurance

This insurance will provide the financial protection and support you need if you have to pay for care assistance for yourself or a loved one. You can receive long-term care in your own home or in a residential or nursing home. Options include:

  • Immediate needs annuities – pay a guaranteed income for life to help cover the cost of care fees in exchange for a one off lump sum payment, if you have care needs now
  • Enhanced annuities – you can use your pension to buy an enhanced annuity (also known as an impaired life annuity) if you have a health problem, a long-term illness, if you are overweight or if you smoke.
  • Savings and investments – give you the opportunity to plan ahead and ensure your savings and assets are in place for your care needs.
  • Equity release – give you the ability to receive a cash lump sum as a loan secured on your home and these can be used to fund a care plan now or in the near future.

Making a Will

3 out of 5 adults in the UK do not currently have a Will. Without one, the state directs who inherits, so your loved ones, relatives, friends and favourite charities may get nothing.

It’s important to make sure that after you die, your assets and possessions (known as your ‘estate’) will go to the people and organisations (known as your ‘beneficiaries’) you choose, such as family members and charities you want to support.

Your estate includes your personal possessions, as well as assets such as:
    – Property (in the UK or overseas)
    – Savings and investments
    – Insurance funds
    – Pension funds

Why is making a Will important?

An intergenerational family smiling now they know the importance of critical illness insurance, life insurance, lasting power of attorney and making a will.

Making a Will is particularly important if you are not married or are not in a registered civil partnership (a legal arrangement that gives same-sex partners the same status as a married couple). This is because the law does not automatically recognise cohabitants (partners who live together) as having the same rights as husbands, wives and registered civil partners. As a result, even if you’ve lived together for many years, your cohabitant may be left with nothing if you have not made a Will. Making a Will is also vital if you have children or dependants who may not be able to care for themselves. Without a Will, there could be uncertainty about who will look after or provide for them if you die.

Giving you peace of mind

No one likes to think about it but death is the one certainty that we all face. Planning ahead can give you the peace of mind that your loved ones have financial protection and can cope financially without you. At a difficult time, it can help to remove the stress that monetary worries can bring.

Lasting Power of Attorney

As someone becomes more unwell, they’re likely to find it more difficult to manage money and financial affairs, and may become too unwell to make decisions about health and care.

A Lasting Power of Attorney is a legal document in which someone (the donor) gives another person (the attorney) the right to help them make decisions, or take decisions on their behalf.

A Lasting Power of Attorney is a completely separate legal document to your Will, although many people put them in place at the same time as getting their Will written as part of wanting to plan for the future. Many people find it reassuring to know that someone they trust will be able to make decisions on their behalf if they become too unwell.

Why is it important to have a lasting power of attorney?