Is Your Life Insurance Keeping Up With Your Goals?

Setting goals is one of the most effective ways to achieve success. You may have multiple goals such as enrolling your child in an independent school, planning for university fees, building or extending a home, saving for when you retire, or protecting your family. 

We cannot, unfortunately predict life and an unfortunate contingency can strike anyone at any time such as if you were to pass away prematurely. This can have an adverse effect on your family and your, goals, especially if you are the sole breadwinner of the family as this could, quite severely, financially affect your family.

However, planning for these events, however unlikely, is crucial. A simple term insurance policy could ensure that your family and loved ones are financially secure in the future. It ensures that your dependents, who rely on you financially for their livelihood, don't compromise on their standard of living and can comfortably accomplish their goals. Additionally, if you have any outstanding loans/liabilities, it also makes sure that your family is not burdened with repaying them.

Goal 1 - Protecting your children’s future

As a parent your primary concern is to protect your children’s financial security, dreams and aspirations. Whether this is education, helping them on the property ladder or just general financial security, they may have dreams and aspirations, like getting into a good university or buying their first home. You obviously cannot ignore these needs and to ensure they can happen you need to ensure that they are financially well-protected even when you aren’t around.

To do so, you can consider investing in a term assurance policy with a corresponding term relating to the term of financial dependency. This provides a financial cushion that can accommodate all their milestones and future needs if you were to pass away during the term.

Goal 2 – Protecting your home

You worked hard to buy your home and plan to repay your mortgage over time to give you complete financial security. A sudden unexpected death may mean the loss of income and a lack of household affordability to maintain the mortgage. This then may result in the property being repossessed or sold at a time of great sadness and stress.

To avoid this, you may wish to consider a mortgage term assurance policy which will coincide with the term of the loan, written in trust. This will mean that should the worst happen, the funds to repay the mortgage will be paid to the trustees, who can then repay the debt, keeping your family safely settled in their home.

Goal 3 – Protecting your partner

You and your partner want to ensure that outgoings and holidays, home improvements etc can be made during your working career. The sudden loss of an income prior to retirement can put huge pressure on the remaining partner and may result in a dramatic change to living conditions.

By considering a term assurance policy, written in trust, to your expected retirement age this may be avoided. The policy will pay out a tax-free lump sum which can then be used to replace lost income and as a result current living standards may be maintainable.

Goal 4 – Protecting your wealth

You may have spent years saving to achieve your life goals and may wish for this to be passed to your family free of inheritance tax.

To achieve this a whole of life policy, written in trust, may be a solution. This would allow a lump sum to be paid to the trustees, who can then use the funds to repay any Inheritance Tax liabilities.

In summary, life insurance may be vital to ensure your goals and those of your family are not compromised. To check your goals are not vulnerable, please arrange a review with us, so we can ensure your protection needs are adequately covered.

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you take financial advice before making any financial decisions.