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Death Benefit Only
A payment of a lump sum upon the death of the life assured.
Critical Illness Only
This will pay out a tax free lump sum in the event of a qualifying illness being diagnosed e.g. Cancer, Stroke or Heart Attack.
(How many people do you know who has suffered any of these Illnesses?)
Death or Earlier Critical Illness
Pays out a lump sum, so that the life assured is protected for both death or critical illness. The policy pays out on the first event and then ceases
Family Protection
In the event of death or serious illness it is normal to provide adequate family protection, to ensure that your partner and children are provided with a cash sum sufficient to meet any funeral expenses, pay off any outstanding liabilities (mortgage balance, personal loans, credit card balances etc), and have a sufficient cash sum to replace any lost income until the children would no longer be financially dependent on the surviving partner.
For someone in the role as a houseperson, and not receiving a regular income, they should consider if they were to die or suffer a serious illness, what the related costs of providing child minding would be, and ensure that sufficient funding would be set in place accordingly. We would also recommend that where a person is paying maintenance payments to his/her ex partner and his/her children, they should consider ensuring that an appropriate cash sum would be payable to ensure their financial well-being could continue if that person died or suffered a serious illness. If this is not already in place, the partner who is in receipt of the maintenance payments may wish to suggest this to the other party, even if they had to pay the premiums.
Single Person
The life and critical illness insurance priority for a single person is to ensure they have an amount payable on death or serious illness that is sufficient to pay off any outstanding liabilities (mortgage balance, personal loans, credit card balances etc ), and have a sufficient cash sum to meet any funeral expenses.
Keyperson and Shareholder
To make sure a business is not unduly affected in the event that a keyperson within the business dies or becomes seriously ill, sufficient insurance should be taken out to cover loss of revenue, and additional costs that may arise.
To ensure the shares of a deceased shareholder are sold to the intended recipient, it may be that a suitable life assurance policy (usually written in trust) should be set up to ensure that sufficient funds are available to facilitate the purchase of these shares.
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