A life worth looking after

You have a life worth looking after. Life insurance provides valuable peace of mind that your family or other  dependants would be financially protected if you were no longer around to provide for them.

There are an estimated 3 million people in the UK living with cancer, rising to a predicted 3.5 million by 2025; 7.6 million people are living with heart and circulatory diseases and stroke strikes every five minutes*. Few things in life can provide more peace of mind than having a secure financial future.

As a minimum, it’s important to ensure you have enough cover to pay off your mortgage, as this is likely to be your household’s largest single outgoing. It’s also worth reviewing how much other debt you have, such as personal loans and credit cards. Consider too whether you want
additional protection to cover childcare costs, education expenses or household bills.

Consider critical illness cover
It can be worth adding critical illness cover for an extra premium. This would pay out a lump sum if you are diagnosed with an illness or condition listed on the policy.

Protect your income
Income protection can replace a percentage of your salary if you can’t work due to an accident or illness, helping you to keep up with financial commitments until you recover.

Time to face up

A typical non-smoking couple in their 50s  have a 28% risk of being unable to work for two months or more before they retire; a 13% risk of suffering a critical illness; 5% risk of death; 35% likelihood of any of these events happening**. In this unpredictable life, accident or illness can strike at any time – whatever your age – so it’s worth thinking about how you or your loved ones would cope should the worst happen.

You have a life worth looking after. Life insurance provides crucial peace of mind that those we leave behind won’t suffer financially, while Income Protection and Critical Illness Cover are a vital defence against loss of income and serious illness

*Macmillan Cancer Support/British Heart Foundation; ** Risk Reality Calculator, LV; 

For many of us our mortgage repayments are likely to be our biggest monthly outgoings. Unfortunately they still need to be paid even if we are unable to work. Are you and your home protected from the unexpected?

As you know, your home is at risk if you cannot keep up repayments. So it’s vital you protect yourself and your family financially by making money available should something unexpected happen. This money can be the difference between keeping and losing your home, and maintaining your family’s lifestyle.

There are events we can all face that have the potential to wreck lives and families. It’s a difficult issue to think about, but imagine the impact on you and your family should the main earner in your household become seriously ill or die. It may not happen to you – we hope it doesn’t – but it might.

Take a typical non-smoking couple aged 40 for example; before they reach 65 they each run the following risks*:

  • An 8% chance of dying
  • A 24% chance of becoming seriously ill
  • A 57.6% chance of being unable to work for one month or more
  • A 62.9% chance of at least one of these events happening.

While there is no insurance that can prevent these things from happening, you can protect yourself and your family. Are you and your home protected from the unexpected?

You may have plans in place already but are they sufficient and how long will they last? There are many extremely cost effective options available to you . In the meantime, please feel free to contact me if you have any questions or need immediate help

Whether it’s young couples moving into a first home together or older pairs blending families after a divorce or bereavement, many people
co-habit at various stages in their lives. But some who have lived together for years, or even decades, might be surprised to learn
they don’t have the same legal rights as a married couple or civil partners. There are many financial decisions for co-habiting couples …

Property perils
Take property for example. If your name does not appear on the deeds, you are not automatically entitled to any share of the property, regardless of how long you have lived in it or how much you have contributed to a mortgage.

Tenancy types
That’s why it’s important to think about tenancy types when buying a property with someone else. You can choose to be joint tenants, where the property is owned equally, or tenants in common, where each person owns a specific part of the property. As a joint tenant, you are entitled to half of sale proceeds if you decide to sell the house. Crucially, your partner would also automatically inherit your share of the home if you were to die – and vice versa. As a tenant in common, you only own your proportion of the property and therefore the deceased
tenant’s part would not be passed on to you unless, for example, they had bequeathed it to you in a Will.

Life insurance
Another consideration is life insurance. Unlike married couples who receive a bereavement support payment if their spouse dies before State Pension age, those co-habiting are not eligible for financial assistance. Therefore, if your partner might struggle financially were you to die, life insurance could help provide for their needs and thus bring peace of mind once in place.

Steps to take
If you haven’t already, you should also think about drawing up a Will. Another important document to consider is a living together agreement, which can be used to set out how your possessions or assets might be split if your relationship were to end.

Talk to us
We can help you understand the law around co-habitation so that you can protect yourself, your children, and your partner so you make the right financial decisions for co-habiting couples.

 

Source: Essentially Mortgages Q1 2022


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