Protecting your most valued and most valuable assets should always be considered when financial loss would be experienced if the worst happened.
Protecting what you have is a fundamental consideration when you have mortgage debt and/or dependants on you or your income. Different policies cover different eventualities and our independent advice can help you understand what cover best suits your requirements.
PF Financial provides tailored advice and sources insurance solutions for you and your family. We will help you calculate your optimum insurance requirements so you are neither underinsured nor paying for unnecessary cover. With a huge range of policies available, taking advice ensures you have the cover suited perfectly to your need.
Our independent advice will centre on providing the best deal, how you should best set up your policy and how to avoid future complications such as Inheritance Tax and we will not charge a fee for this service. What’s more, we have direct access to underwriters so can discuss any pre-existing medical conditions to find out which insurer will provide the most competitive rate.
Benefit paid: Tax-free payments made if death occurs during the policy term.
Options for the cover:
The death benefit will remain at the same level through the term of the policy. This is a good option if you have an interest only mortgage or if you wish to leave a lump sum to your family.
The death benefit will decrease over time. It’s ideal if you have a capital and interest (repayment) mortgage as it will ensure the amount paid out is the same or similar to the mortgage. As cover is decreasing, the premiums are typically cheaper than for level plan.
This is the exact opposite to the decreasing protection as the death benefit increases over the life of the policy without the need for medical evidence. It is designed to combat inflation but, as cover increases, the cost will too.
Family Income Benefit
Rather than paying out a lump sum, this pays out a regular tax-free income until the end of the policy term. This is often the cheapest form of life cover and very useful family protection.
Protects: The insured person against Critical Illnesses
Benefit paid: Tax-free lump sum paid on diagnosis within the policy term
Critical Illness cover provides a tax-free lump sum if you are diagnosed with a list of common defined critical illnesses. These may vary from insurer to insurer but will normally include heart attacks, cancer, multiple sclerosis, Parkinson’s and motor neurone disease and many more. This cover is also available level, decreasing, increasing and as Family Income Benefit and can be easily be added to a life insurance plan.
Protects: The insured person in the event of Illness or injury
Benefit paid: Regular tax-free income until a specified age or date
If you cannot work because of illness or injury, after an initial deferred period, an Income Protection plan is designed to replace a proportion of your income until you are able to return to work, you die or you reach a specified age or date. The maximum income you can protect is normally based on 60-70% of your gross income. If claimed, many plans also include useful rehabilitation benefits designed to help you back to fitness and work. Depending on your requirements and budget, you can decide on the number of months before the policy will pay out and how long it will continue to pay for.
If you purchase a freehold property, the mortgage lender will require you insure the building. This will protect the permanent fixtures of your home such as the roof, walls, floors, bathroom fittings and ceilings from damage from unforeseen circumstances such as fire, flooding, subsidence and storm damage. The insured amount will need to be at least enough to fully rebuild the property. This figure is usually shown on the mortgage valuation document.
If you are buying a leasehold property, buildings insurance is normally provided by the freeholder.
Your mortgage lender won’t insist that you have contents insurance, but it is usually sensible as it will cover all your personal belongings, including clothing, furniture, jewellery and electrical goods, against loss or damage. It may include alternative accommodation benefit which would be necessary if your home is uninhabitable because of the claim.
Different levels of cover are available, but generally you’ll be covered against theft, fire and flood. You can also include optional extras such as accidental damage to certain items, home emergencies, property damaged, lost or stolen away from the home and legal cover should you have a legal dispute relating to your home. These additional benefits may be standard on better plans or purchased at additional cost.
Some businesses have a small number of partners/shareholders or key employees vital to the ongoing success of that business. It is usually sensible to protect the business by insuring key people should the business not run efficiently without them. We can advise you on the best policies available to suit your business requirements.