May 31, 2018

advisers

adviser part 2

How Long should my Insurance cover run for?

Our experienced team of Advisers are always on hand to answer any questions you may have.

If, once you’ve read this feature, you’d like to talk through your situation, please call:

0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

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When asked how long you would like your cover for? You might like to consider why you are getting the cover in the first instance.

We always recommend a term that matches your requirements. It can be false economy to arrange a short term policy if your intention is to replace it at a later date. Although a short term policy will initial cost less, it will become more expensive as you grow older and may even be unavailable if you suffer a medical condition.

Mortgage

How long will your mortgage run for? Your life and critical illness insurance should match it like for like in amount and length of term. To find out what type of life insurance is best for your circumstance read about home cover here.

Retirement Age

When it comes to Income Protection – which helps to protect your income if you were unable to work as the result of an accident or sickness and critical illness – which pays out a tax-free sum if you become seriously unwell. The term should match the age at which you are ready to retire financially.

Gift to children

If you are thinking about or have gifted a significant amount of money to your children (to help them buy their first home perhaps). It is worth considering Gift Inter Vivos Insurance. Gift Inter Vivos insurance policies are 7 years in length and are tailored to track the liability of Inheritance Tax ( IHT is exempt after 7 years from the date of the gifted sum).

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Loan to children/ family member

This should match the amount and agreed length of time that they have agreed to pay the loan back. The policy should be in their name should they pass away and put in Trust for you as the trustee and beneficiary. In the event of their death the loan will be paid back in full from the policy.

Trusts are not regulated by the Financial Conduct Authority.

Dependents

In terms of life insurance to leave a gift for your family when you pass away, you might want to consider the age that your children or dependents will no longer need your financial support.

Funeral

Where an insurance plan is to cover the cost of a funeral. Naturally, no one knows when their time will be come. We would recommend  Whole of Life Insurance. As such these policies ( as long as you keep up with the premiums) have open ended terms and pay out when you pass away. Or, if Whole of Life cover proves too expensive, a term of up to the age of 90 would be suggested.

We are on hand to guide and advise, if you need help with how much cover is right for your circumstances we will be happy to help.

Interested in related stories?

How to contact us:

Whilst you are welcome to get a quote on-line but we would recommend you talk to one of our advisers.

Your adviser will take into account your medical history. Any quote which they provide to you will take into account to your situation, your medical history, as well as your budget!

An on-line quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof.

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Do you suffer with a medical condition and are concerned you can’t secure Life or Critical Insurance?  

Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

 

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