Protect What Matters Most
One of our advisers, Jason Smith, talks us through all things protection, and how best to protect who and what matters most...
We’re all pretty good at protecting the everyday things in life - our phones, pets, cars, and we wouldn’t dream of heading off on holiday without travel insurance. But, when it comes to protecting ourselves, our income, or the future of our families and businesses, it’s so easy to put it off - yet life doesn’t always go to plan!
As a financial adviser, I speak to people who want to plan for their financial futures, and look after the people they love - one of the most important foundations for that is protection.
So, what does that actually look like?
1. Life Cover
Nobody likes to think about it, but life insurance gives your family vital financial support if
the worst happens. Whether it’s a term policy to cover the mortgage, or a whole-of-life policy to help with Inheritance Tax, it’s about creating peace of mind.
Many people don’t realise that if you write your policy in trust, the payout can avoid probate
delays and inheritance tax, ensuring funds reach your loved ones as quickly as possible.
2. Income Protection
This is one I talk about often, especially with self-employed clients. If you were suddenly unable to work due to illness or injury, how long could you manage financially?
Income protection is designed to pay you a regular monthly amount, helping cover the
essentials like your mortgage and bills, leaving you to focus on recovery.
In many circumstances, the monthly payments are considered to be a lifeline.
3. Critical Illness Cover
A serious illness can affect not only your health, but your finances too. Critical illness cover
pays a lump sum if you’re diagnosed with a major illness like cancer, stroke or heart disease, providing you with flexibility when you need it most.
The lump sum could allow you to fund extra care, reduce your work hours, or simply allow you and your family some time together.
4. Shareholder Protection
If you’re in business with others, this is crucial. What happens if one of you dies or becomes
seriously ill? Shareholder Protection gives the surviving owners the funds to buy back shares, keeping control of the business and providing certainty for everyone involved — including family members.
5. Relevant Life Cover
This option is ideal for business owners or directors, and a great way to look after yourself and your employees. Relevant Life Policies are tax-efficient ways to offer life cover, with premiums usually paid by the business, and not treated as a benefit-in-kind.
My advice…don’t wait!
Protection isn’t just a policy, it’s a way of making sure you, your loved ones, and your business are taken care of, no matter what life throws your way.
Please note, term assurance, critical illness, income protection and relevant life cover plans do not have a cash-in value and will stop if payments to them cease.
The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is generally dependent on individual circumstances.
Trusts are not regulated by the Financial Conduct Authority.
Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.
