Nobody likes to think about it but things change. Your circumstances change. Your family changes. Your career changes and not always when and how you plan it. That’s why having some financial protection in place is always a good idea, ensuring that no matter what changes, you and the people that matter are protected.
Life has a funny way of throwing things at you when you least expect it.
- You hurt yourself whilst playing with the kids
- Your company gets bought out by a competitor
- Things that you’d never expected come out of the blue
You can’t anticipate them, but you can plan for them… to limit the impact. That way, whether it’s illness, redundancy or even death, the financial consequences are minimized for those you care about.
The peace of mind you get from realising that no matter life’s challenges, especially the ones you and your loved one’s face, knowing that finance won’t be one of them is something to be appreciated.
asset plus+ offer a rich experience in all things protection and can help you plan for the unexpected at a level that’s right for you. Ensuring the people who matter most get the best support available.
I took out 3 separate insurances in 2005 with Steve Colbourn of Asset Plus. I did not think that 9 years later at the age of 41, I would be claiming against 2 policies for critical illness after being diagnosed with cancer.
I had no idea where my documents were, or the terms of my policy. I contacted Steve who was as helpful as when I took out the policy 9 years previously. He talked me through the forms and helped me with questions that I no longer knew the answers to. The insurance companies used were described by my Macmillan nurses as reputable, solid and never known to try to wriggle out of paying.
I had far more important things on my mind than claiming money but I never needed to be concerned. Both insurances paid in full within 60 days of the claim, with minimum fuss providing my family with financial security. I have no hesitation in recommending this organisation as they were perfect in every way and for that I will always be grateful.Alan Reay
Common Questions about Protection
No one likes to talk about the bad things that can happen unexpectedly, but that doesn’t mean that they won’t happen.
We get asked all types of questions about planning for the future and protecting loved ones… here are some of the most frequently asked:
Why do I need protection?
The back up plan.
You’ve insured your car in case of costly damage; you’ve insured your pet in case of expensive vet bills; you’ve even insured your mobile phone in case it smashes…… So it goes without saying you should of course insure the main breadwinners to keep a roof over you and your families heads!
What types of protection are there?
Basically a form of sick pay, this can pay a monthly income if you are unable to work due to an accident or sickness. Available to both employed and self-employed, it will pay an income until you are able to return to work, retire or die.
Critical Illness Cover
With medical science improving our chances of surviving serious illness, life insurance companies have recognized the need to cover these illnesses and pay a lump sum to help in the recuperation, medical assistance or pay off accumulated debt after diagnosis. Critical illness cover pays out a tax-free lump sum or income to policyholders if, during the term of the policy, they are diagnosed with one of a number of specified ‘critical’ illnesses or conditions, such as: cancer, heart attack, stroke, or Multiple Sclerosis.
There is of course no specification as to how you spend the benefits once you receive it.
Life assurance is especially important when you have dependants. The impact of a death on your family could not only be emotional but also have huge financial implications. When taking out large debts such as mortgages it is important to ensure you’re loved ones are sufficiently protected.
Can I rely on state benefits?
With Statutory Sick Pay (SSP) paying just £89.35 a week for 28 weeks*, you can quickly see any savings you may have could be eaten up just meeting your monthly outgoings if you fell ill.
If you were to die, a lump sum of £2,000* is payable – perhaps just enough to cover the funeral costs! If you leave behind children, your spouse or registered civil partner may receive £113.70 a week* if they qualify for Child Benefits (therefore stopping when the child reaches 18 or 16 if they stop full time education).
Add to that, an arduous claims process, which could cause your loved ones unnecessary emotional and financial stress, it definitely pays to make you own provisions.
Source: www.dwp.gov.uk Rates correct as at April 2017
How much insurance can I have? How much do I need?
This depends on your individual circumstances. asset plus+ can provide bespoke advice to suit you and your family’s needs.
You may want to ensure any debts can be repaid or an income provided in the event of the death of the borrower/parent.
Provide a lump sum or income in the event of suffering a designated critical illness, to help fund the families lifestyle.
Replace an income in the event of being unable to work due to any ill health to help fund the families lifestyle.
Provide an income in the event of being made redundant, to enable you to take your time finding a suitable new job.
I already have insurance…
Excellent!! Policies are cheaper the younger, fitter & healthier you are, so the sooner you put a policy in place, the better. However it is always beneficial to regularly review these policies. Lifestyle changes such as buying a new home, changing jobs, or even getting married and starting a family can leave a shortfall in the amount of cover you have.
Why do I have to provide details about my health?
The life assurance company must decide if you are an acceptable risk. They will want to know about your health and also your family history to ascertain if there are any high risks. They contact your doctor or ask to undergo a medical.
These reports are strictly confidential and at no cost to the customer. By providing this information and the policy being fully underwritten upfront and before you start paying should ensure the policy pays out on a valid claim.
Can I decide who gets the money?
Yes. If you have not specified who will get the proceeds on your policy, the money will be paid into your estate to be passed to your next of kin. You may have re-married but have children from a previous relationship. In this instance the proceeds would all go to your wife and nothing to your children. By putting the policy under trust you can decide who you wish to receive the money and indeed split the proceeds however you would like.
Are There Tax implications?
Life assurance, Critical illness cover and Income Protection pay out tax free and will form part of the deceased estate for inheritance tax calculations unless it is put in trust.
Can I use my employer benefits?
Each company benefit scheme is different; therefore it is important to fully understand what exactly you would be entitled to, it could be Death in Service or sick pay. Your employee handbook or HR department should provide this information.
It is also worth taking into account whether you intend to stay with this company through to retirement? Moving jobs could mean losing these benefits and as you get older, the cost of insurance will go up.
I’ve got no dependents, I don’t need any insurance…..
You are finally independent! You’ve got your own home and no one to answer to…. so can you imagine losing it all? Protection requirements are not just for the benefit of others – they make sure you are able to meet your monthly outgoings and retain that independence, whatever life throws at you.
Should I write a Will and Lasting Power of Attorney (LPA)?
People put off making a Will for a variety of reasons, either believing they are too young to plan ahead or believing that the people they would wish to inherit will automatically do so.
However you can put off making a Will until it is too late and this poses many problems for your loved ones left behind and in the worst case scenario your inheritance could go to the wrong person or the state.
Lasting power of attorney (LPA)
Many of us care for, or know someone who is caring for, a person with alzheimer’s or dementia. There are around 850,000 people with dementia in the UK, of whom 40,000 are under 65. This number is forecast to exceed one million by 2025 according to the Alzheimer’s Society.
With this in mind, it’s more important than ever to plan ahead to ease the potential burden on relatives should you lose mental capacity in the future. A lasting power of attorney (LPA) is a legal way to give another individual the legal authority to make decisions on your behalf should you lose the capacity to do so. It’s not just for the elderly; younger people may also become incapacitated through accident or illness.
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About Asset Plus
We are Experts – we know the market and the people we serve. We are Bespoke – every person and circumstance is unique – and needs to be treated as such. We are Transparent – we keep you informed every step of the way. We are Accessible – we’re approachable, local & friendly, and look to build great relationships with our customers – not keep them at arms length through call centres and anonymous communication. We are Invested – it’s about knowing that there is a bigger story, understanding what it is, and helping you achieve your dream. We are more than just an Asset – because we know it’s about more than just the money...
asset plus+ Mortgage Solutions is a trading style of asset plus+ Financial Ltd, an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. asset plus+ Financial Ltd is registered in England no: 05859399. Registered Address: Umpleby Accountancy, Basepoint Business Centre, Bridge Road, Haywards Heath, West Sussex RH16 1UA.
There will be a completion fee for advice. The precise amount will depend upon your circumstances but we estimate that it will be £300.
Wills and Trusts are not regulated by the Financial Conduct Authority.
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