Life insurance is designed to pay a lump sum on death of the policy holder.
If you're looking for a way to support your family once you have gone, this is the perfect solution for you, ensuring those who you love are well looked after.
You can be insured for any amount that you choose so not only will the life insurance policy be able to clear the mortgage, it can also provide additional funds to repay debt or just to make sure that the surviving family are financially secure.
For more information do not hesitate to contact our team here at Winstree Financial Services for Free Independent Review of your Protection requirements.
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How Does Life Insurance Work?
Life Insurance policies that we recommend provide protection only and have no cash in value at any time.
If you don't pay your premiums your cover will stop. The amount of cover for any policy which pays out if you die may form part of your estate for inheritance tax purposes.
We always recommend that the policy be placed in trust. Using a trust with one of our protection policies will make sure that the right people receive the money, at the right time, and usually without inheritance tax liability.
This policy includes terminal illness cover. This means that if the person insured is diagnosed with a terminal illness (a rapidly progressing and incurable illness where they are not expected to live) you can make a claim.
Policies can be set up on a decreasing, level or inflation linked basis .
When a policy is decreasing it means that the amount that would be paid out on a claim will go down each year, throughout the policy term. This is appropriate for a repayment mortgage.
Level cover means that the amount that would be paid out on a claim will always be the same – whether the claim is made in the first year, or during the last year of the policy term. As the amount of cover is fixed it's important to understand that as the cost of living goes up over time, the amount of cover in your policy will buy less.
Finally, Inflation-linked cover. Means that the amount that would be paid out on a claim will go up each year in line with the Retail Prices Index (RPI). Your premiums will also increase at the same rate each year. By choosing inflation-linked cover, inflation will have less impact on the real value of the lump sum payable.
Why have Life Insurance?
Life insurance will financially support your loved ones when you can’t anymore
Life insurance is tax-free, unlike any other financial insurance or support
Throughout the policyholders lifetime, the cash value grows tax-deferred
Policy loans are income tax-free
You can exchange your life insurance policy for another without interrupting the taxation on the money
Who Needs Life Insurance?
We highly recommend that everyone has some kind of Life Protection.
Although there is no financial requirement that you must have life insurance, many people choose to have life insurance due to the financial support it brings to their loved ones once they have passed away.
Life insurance provides a lump sum of cash to those you wish to leave the money to, this will help your family pay bills and be financially free throughout a difficult time. We advise you strongly consider life insurance; this is the perfect opportunity for you to continue to support your family.
How Much Life Insurance Do I Need?
The amount of life insurance will depend on each individual and the way you live your lives. The more cover you take out, the higher the lump sum of money will be left to your loved ones. This all depends entirely on your own financial situation. More often than not, the policyholder tends to underestimate the amount of money their family needs. This results in leaving their loved ones short of cash.
It’s important that you fully understand what you're letting yourself in for when signing up for a life insurance policy. It’s important you take your loved ones financial situations into consideration so you know how much to leave for them. Talk to one of our financial advisors here at Winstree Financial Services, we’re here to support you today.
If you're looking for a life insurance company in Colchester, Essex contact our team here at Winstree Financial. We want to help make a difference today.
We will make sure that we recommend a product that is suitable for your circumstances. We will advice you and then provide you with a written recommendation based upon your needs.