We know that parents have many responsibilities including making sure all is well if the worst happens. One of the greatest risks any person faces is that of serious ill health and long term disability and the impact that has on one’s income and lifestyle. For a family, the death or incapacity of a parent can have a catastrophic impact on those left behind.
At Estate Capital we care for our clients and their families. We want them to be safe and secure in the knowledge that whatever life throws at them they will be able to cope.
We understand the financial worries that concern people. We have helped many clients protect themselves in the event of serious illness, loss of income due to ill health or injury. We have helped families who sadly lose loved ones, come to terms with their loss with the help of the financial security we put in place for them.
You may be a home owner with the responsibility of paying a mortgage over many years ahead.
It is a great sense of pride and fulfilment to buy a first home or move to a new one. The sense of security is also matched by the feeling of responsibility. The responsibility of having a mortgage brings with it obligation to repay the loan.
One of the greatest risks any person faces is that of serious ill health and long term disability and the impact that has on one’s income and ability to meet financial commitments. For a family, the death or incapacity of a parent can have a catastrophic impact on those left behind particularly if loans are outstanding.
Frequently Asked Questions about Family & Business Protection
Life insurance often costs less than people expect it to. The monthly premium is dependent upon the level of cover, age, health and lifestyle of the applicant. Once an application has been underwritten, then the final premium can be confirmed.
Life insurance, critical illness and income protection policies are all clearly defined contracts of insurance. If a policy holder fulfils the conditions of a claim then a pay-out will be made. A claim could be affected by any non-disclosure issues at the point of application.
All pre conditions or existing conditions are taken into account during the underwriting process. A final premium offer will take these into account.
If you wish to insure your life for the benefit of your wife or husband or family there is no upper limit.
Income protection policies can insure up to 55% of your taxable earned income. This income can include salary and private company dividends or self-employed net profit. It will not cover investment derived income such as rent.
All single life insurances should be placed in trust to ensure that the person that the life cover is there to protect receives the policy benefits swiftly and without the complication of probate.
This will depend upon your circumstances and needs. Firstly it would be important to clear any family liabilities such as a mortgage and a mortgage protection plan will achieve this objective.
However a mortgage is not the only family outgoing, so to cover the loss of an income, a family income benefit plan or term assurance should be considered.
If the nature of your insurable interests such as a dependent child or mortgage liability has a term that will at some stage end, then a term assurance policy will provide the needed cover over the required term at lowest cost. If however you have lifelong insurance needs then a whole of life policy is more appropriate.
This difference particularly applies to income protection plans. The life assured can apply for protection against the loss of income from a specific occupation, one that is higher paid due to greater skill, education or training as compared to any occupation. An income protection plan will therefore pay out income if the plan holder cannot do the role that they are trained to do irrespective of if they can do any other.
Life insurance is usually a long term insurance and as such a sum assured will reduce in relative value over time due to inflation. Index linked benefits will avoid this. With index linked policies both the sum assured and premiums increase by the retail price index (RPI) each year.
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