We insure our cars, homes and possessions, yet shockingly it’s estimated that only two in five of us protect ourselves and our families with life insurance cover.
We all want financial security and, whether it’s squirrelling away a rainy day fund or saving for retirement, most of us aim to create a buffer of protection. Yet a 2022 survey by HSBC revealed that only 43 per cent of people in the UK have life insurance. While it’s not a legal requirement, knowing that a mortgage
will be paid in the event of death will help loved ones have some financial security if anything were to happen to us. Even if we already have life insurance in place, it’s worth reviewing this regularly with a professional adviser to ensure the cover meets your needs.
“Life insurance is a large, highly competitive space” says Simon Gilvey, director at Broadland Consultants. “A broker can navigate the market and ensure you get the right type of cover with the best provider, which you can’t necessarily do with a quick online search. A number of life insurers now also offer policy holders additional membership benefits such as:
– Health-lines with 24/7 access to speak to a nurse
– Private/digital GP services – Annual health checks
– Gym membership discounts – Nutritionist appointments
Broadly speaking, the younger you are, the cheaper the premium will be and, as it is not typically renewed annually like other types of insurance, taking a policy out at a younger age is a great way to lock in
cover at a low cost. “Buying a house is a key moment to review cover for the mortgage debt and wider financial protection, but also to ensure your wishes are reflected in a will. As an example, unmarried couples often assume, incorrectly, that property will automatically pass to their partner if they die. An adviser can help review your situation as life changes, and put the relevant coverage in place. Certain occupations are harder to insure and even hobbies can affect protection, but there are providers that will provide cover and we can help to identify these. Health history can also be a challenge as we get older, and there are certain companies which are more flexible in this area, which we can approach for you.
“For directors or employees of a limited company, HMRC now allows them to take a life insurance policy to help protect their families which the business can pay for, saving on corporation and personal taxation on the premiums and reducing the cost of the policy. For business owners we can also assist with key person protection or share protection insurances too. In all areas, life insurance is often less expensive than you might think, and people often pay more to protect their phone than it would take to ensure their family is taken care of.”
Call Broadland Consultants on 01603 343007 or visit broadlandconsultants.com
This article is for information only and should not be relied upon to make financial decisions. Products subject to status and your personal circumstances. Broadland Consultants Limited is authorised and regulated by the Financial Conduct Authority. FCA No. 958621. Your home may be repossessed if you do not keep up repayments on your mortgage. Commercial and buy-to-let mortgages are not regulated by the financial conduct authority. Equity release, home reversion plans and lifetime mortgage are complex products and you should request personalised information. Equity release
could affect your income tax position and your entitlement to state benefits; it could also restrict future options for moving house or paying for long-term care. Equity release could reduce the value of your estate that your beneficiaries expect to inherit. You should talk to them before committing to a plan
