sm124 - Flipbook - Page 11
PROTECTION
INCOME PROTECTION
ACTS AS A SAFETY NET
DURING ILLNESS OR INJURY,
PROVIDING REGULAR
PAYMENTS TO COMPENSATE
FOR LOST EARNINGS WHILE
YOU RECOVER.
condition. This 昀椀nancial support can help cover
or regular payments when the policyholder
layer of cover, from healthcare to income
medical treatment, replace lost income and
passes away, ensuring 昀椀nancial stability during a
replacement and inheritance strategies, helps
provide additional resources during recovery.
challenging transition.
strengthen 昀椀nancial resilience.
Some policies even permit add-ons, such
This type of insurance is especially useful
We understand that navigating these options
as children’s critical illness cover, providing a
for covering major expenses like mortgages or
can feel overwhelming, but it doesn’t have to be.
昀椀nancial safety net if your child is diagnosed with
school fees. Payments can be customised to
Taking proactive steps today provides con昀椀dence
a serious condition. These funds could enable a
align with life milestones, such as supporting
and peace of mind, knowing that your loved ones
parent to take unpaid leave, ensuring they remain
children until a speci昀椀c age or giving a spouse
will thrive, no matter what happens. With the
with the child and are better able to provide care
enough time to adjust.
right protection in place, you can safeguard the
lifestyle you’ve built together. t
and support.
LEAVE AN INHERITANCE WITHOUT
INCOME PROTECTION SAFEGUARDS
UNNECESSARY FINANCIAL STRAIN
THE STABILITY OF LIFESTYLE
Inheritance planning often involves tax
Income protection acts as a safety net during
implications that can be easily overlooked.
illness or injury, providing regular payments to
Without proper preparation, families may face
compensate for lost earnings while you recover.
di昀케culties such as selling the family home to pay
Policies can be customised for short-term or
tax liabilities. Establishing a suitable trust could
long-term needs, with options to defer payments
address this proactively.
and manage premiums.
Typically, you can cover between 50% and
Trusts o昀昀er many bene昀椀ts, including quick
access to funds after death without the need to
67% of your income, ensuring your family
go through probate. Moreover, money placed into
continues to meet 昀椀nancial obligations despite
a trust remains outside your estate as long as you
unexpected work interruptions. This option is
survive for at least seven years after establishing
especially useful for individuals without other
it, entirely avoiding Inheritance Tax. Trusts also
income safety nets.
give you full control over how and when your
dependents receive their funds.
LIFE INSURANCE OFFERS TAILORED
SECURITY FOR YOUR FAMILY
BRINGING EVERYTHING TOGETHER
Life insurance is a basic part of 昀椀nancial security
Protecting your family’s lifestyle requires careful
for any family. It provides either a lump sum
planning and a personalised approach. Each
Need guidance
on protecting you and
your family’s lifestyle?
If you would like further guidance on protecting
you and your family’s lifestyle, we’re here to
help. We’re here to assist you in creating a
customised 昀椀nancial protection plan tailored
to your needs. Contact us for comprehensive
advice and personalised solutions. We look
forward to hearing from you.
This article does not constitute tax, legal or 昀椀nancial
advice and should not be relied upon as such. The Financial
Conduct Authority does not regulate estate planning, tax
advice or trusts.
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