As humans, there is one topic that everyone tends to avoid discussing, and that is death. None of us likes to admit that we won’t live forever and don’t like discussing the matter with our families. In addition, insurance generally is something that no one wants to purchase, so this may indicate why people prefer to invest rather than insure their lives.
As a responsible practice, we always encourage our clients to take out life assurance and protect themselves from the inevitable. But, sadly, many leave it on the side and never get around to putting plans in place. Here are five reasons why you need life assurance.
It’s cheaper when you are younger.
It makes sense that if you take out life assurance when you are young, it will be cheaper than leaving it until you are 50 plus. Actuaries will look at the risks statistically and set the premium accordingly, and naturally, the longer you pay, the cheaper the same levels of cover will be. Although discounts are frequently offered in the first year, premiums will remain the same or only increase with inflation, aiding your financial planning.
It protects your family.
If you are the primary breadwinner in your household, how would your family manage without your income? Life assurance protects your loved ones by providing a lump sum on your passing, which could be used to pay the mortgage, funeral expenses, and school fees. In addition, it will ease their stress at what will be a trying time emotionally.
Protects your home or other assets
Life assurance along with critical illness cover can protect your family home, providing a lump sum to pay the mortgage or other outstanding loans. The lump-sum can be used to allow your family to start a business or set themselves up after you have passed. It will allow your family to enjoy their life and you can be confident that you have done everything possible to look after them now and in the future.
Inheritance Tax planning
Life assurance can be used as part of your Inheritance Tax planning and help protect your legacy from the taxman. Inheritance Tax is complex, but we can guide you and show you ways to reduce your liability. It needs to be set up early on to be legitimate and not raise questions regarding the disposal of assets or even tax evasion.
Next-generation wealth planning
Life cover is, in effect, a form of investment but one that the next generation can only access after your death. Most people wish to leave their legacy to family members but may not have large sums in investments or pension pot. By obtaining life cover, you can still bequeath your assets to loved ones, meaning they can appreciate the legacy you managed to build during your lifetime.
Life assurance is a sensitive topic, but one that should never be ignored. If you would like assistance through the complex maze, contact our team now to find your way.