Life Assurance and Critical Illness

Whilst Life Assurance appears to be a straight forward purchase for many people, it should be remembered that even this, in our opinion, requires advice.  Life Assurance policies vary and have differing features and benefits which need to be understood before a purchase is made.

Having a Critical Illness, Long term Illness or an untimely death are not something we want to think about, but should be considered, as it is still the foundation of financial planning, particularly for your families, as it provides a very cost effective solution, should the main provider die unexpectedly.  It is probably fair to say that you will never meet a widow who feels her late husband was “over-insured”  So it is important to make sure that an appropriate level of protection is in place at all times.

Placing a Life Assurance Policy under Trust will keep the proceeds out of the estate for inheritance tax planning, while at the same time making sure that the right person receives the right benefits at the right time, as the use of a Trust means that beneficiaries do not have to wait for probate.  There are different types of Trusts available, so this should always be considered with Life Assurance is purchased.

 

The FCA does not regulate taxation and trust advice.