Life assurance
The aim of life assurance cover is to provide money in the event of death.
If there are no individuals financially dependant on you, or other liabilities (e.g. mortgages or loans), life assurance is probably not essential. However there are other reasons why it could be useful.
One simple question:
"If you were in a fatal traffic accident tomorrow, would someone be affected financially"
If the answer is "yes", then we should discuss your insurance needs, in order to ensure that you and your dependants needs are properly catered for.
To discuss this further, please contact us.
Life Assurance is used primarily in the following circumstances:-
• Mortgage - If the house is to be lived in by your partner or children then it is normal practice to ensure that the mortgage is cleared on death.
• Money for dependants - If you have small children then money will help provide for them, perhaps by allowing the surviving partner to stay at home or work part time for some years. The aim generally being to maintain the standard of living and quality of life that existed prior to the bereavement.
• Business debts - Banks and creditors get worried when individuals who are important to the ongoing success of business die. Credit lines get shortened or even terminated, often with dire consequences for the business. Businesses can insure selected individuals so as to provide funds to settle all debts and assist in the recruitment of a new person.
• Business partners and co-directors - If you die you hope that your colleagues will pay a fair value for your share of the business, but they can only do this if the funds are available. Alternatively the remaining business owners could find themselves with a representative of the decease’s estate.
Life Assurance can also be used to provide funds which could avoid this eventuality and make a fair payment to the deceased estate.
The good news is that many people already have some life assurance in force and in many cases this will suffice for their needs, although as requirements and circumstances change, it may need updating. It should be borne in mind that with increased age the cost of live cover increases and with the onset of serious ill health underwriting requirements may result in applications being declined or offered on prohibitive terms.
