Life insurance advice
Life insurance is one of the simplest and most important things you can do for the people you love. It helps make sure that if you die, your family has the money they need to stay in their home, cover the bills, and keep their standard of living, at a time when the last thing they should have to worry about is money.
We help people across Buckinghamshire, Berkshire and Oxfordshire arrange life cover that genuinely fits their family and their circumstances. Part of that is choosing the right type of cover, because life insurance is not one single thing, and the differences matter.
How much life cover do you need?
There is no single right answer, because it depends on your situation. A common starting point is to think about what your family would need to clear the mortgage, cover everyday living costs, and maintain their standard of living for as long as necessary.
We help you work through this properly, so you end up with the right level of cover, not a number plucked from the air.
The main types of life cover
Level term assurance
The amount of cover stays the same throughout the policy. If you took out cover of a fixed amount for twenty years, that same amount would be paid whether you died in year one or year nineteen. Often used to protect a sum that does not reduce, such as an interest-only mortgage, or to leave a set lump sum.
Decreasing term assurance
The amount of cover reduces over time, usually in line with a repayment mortgage. As you pay down the balance, the cover falls, which means premiums are usually lower than level cover. A cost-effective way to make sure your mortgage would be paid off.
Family income benefit
Instead of a single lump sum, it pays your family a regular, tax-free income for the remainder of the term. For many families this is easier to manage than a large lump sum, because it replaces lost income in the way households actually budget.
Please note that there is no pay-out of family income benefit if you die after the term of the policy, nor will you get your money back.
Which type is right for you?
Most families end up with a combination rather than a single policy. You might use decreasing cover to protect your mortgage, level cover to leave a fixed lump sum, and family income benefit to replace your income for your children’s growing-up years.
We help you work out the right mix for your circumstances and your budget, so your cover does exactly what you need it to and nothing you do not.
Writing your policy in trust
Putting a life insurance policy in trust can mean the money reaches your family more quickly and, in many cases, without forming part of your estate for inheritance tax.
It is a straightforward step that is often overlooked. We help you understand whether it is right for you and make sure it is set up correctly.
Trusts are not regulated by the Financial Conduct Authority.
Let us talk
If you want to make sure your family would be financially secure whatever happens, a short conversation is the place to start. No obligation.