PERSONAL LIFE INSURANCE
THE AWKWARD CONVERSATION
No-one likes to talk about it but we want to help you make a plan so that you and your family are in a position to be financially comfortable should the worse happen.
Along with our expert knowledge and working with the leading Life Insurance providers, we have a variety of tools available to help review your circumstance together, taking into account any existing policies you have and future plans. We will then advise you on the best cover available to protect you and your family within an affordable price.
WHAT IS LIFE INSURANCE?
Life insurance is an insurance for a set term, which is designed to pay out a tax free lump sum of money to your estate should you pass away during the term of the policy. It is also known as Life Cover or Life Assurance.
Depending on your age, you can purchase this policy for any period, with the average policy being 25 years. It can be purchased on a level (the payout stays the same throughout the term of the policy) or a decreasing basis (the payout reduces over the policy term) for a monthly premium. The cost of a policy is determined by a number of factors including your age, health, lifestyle and amount of cover and term required.
WHAT IS 'WHOLE OF LIFE' COVER?
Whole of life cover is a type of life insurance, but rather than being for a specific term this policy will continue until death whenever that maybe. This policy has a guaranteed payout unlike the traditional life insurance and is therefore more expensive.
These policies are often linked to an underlying investment, the cost of your policy can often be determined by how well this investment performs. Whole of life policies can also be a useful way to cover a future inheritance tax bill.
WHAT IS A 'TRUST'?
At Manley Financial, we would recommend to put all our policies in trust for two very good reasons. Firstly, by placing your life insurance policy in Trust, the insurer will be able to pay a claim more quickly as they will only need a death certificate before releasing the money which means there is no wait for probate.
Secondly, if you have passed away the proceeds would ordinarily go to your estate which may be subject to inheritance tax. By putting your policy in Trust, you may be able to ensure that the proceeds do not form part of your estate and are therefore not liable for inheritance tax. This service is free of charge.
Please note: The Financial Conduct Authority does not regulate trusts.