Life Cover
No-one likes to think or talk about it – but Life Cover is an essential policy that we should all have.
Why have life cover?
It’s important that you have protection for your partner and family if the worst should happen. Leaving your family behind is likely to increase the financial burden placed upon them, but with a bit of planning ahead you can have peace of mind about the future.
Why use Parasol Money life cover?
At Parasol Money, we work on your behalf to tailor a solution that reflects your working lifestyle. Using our Life Cover Finder, we will source the most competitive Life Cover plan for you giving you the ultimate “safety net” at a price you can afford.
ParasolFinancials provide two main types of life insurance:
Term Cover – a cost effective option
A term policy provides simple low cost protection for a given period, after which time the policy will lapse without value.
”Whole of Life” plan
A whole of life plan is sometimes a more expensive option but provides your dependents with benefits no matter what age you die.
Parasol Money Protection Finder shows you a variety of life cover options with varying applications.
Below are some of the common uses of our life cover plans:
- Provides a lump sum that your dependents would then invest for an income. It’s important to realise that this invested capital could be easily eaten into and this would reduce the income generated.
- Covers your life for the time that your kids will be dependent on you (say to age 18 or perhaps 21 if you hope they will go to University).
- Protects an interest only loan such as an ISA mortgage so that you leave no debts for your family to pay.
Uses of a decreasing term assurance plan:
- To provide a set income over a term to help fund household bills/education. Remember that the total benefit that this plan pays may be relatively small if death occurs in the last year of a 20-year policy, but could be very significant if death occurs early in the term. A level policy will pay the sum if death occurs in the first month or the last month of the same 20-year term.
- To cover a repayment (capital and interest) mortgage.
- Use as a family income benefit plan.
Uses of a whole of life policy:
- If this investment-linked plan is cashed at an earlier stage, then a cash sum can be drawn out (sometimes referred to as “cash if you die, cash if you don’t die” policy). It is important to note that the value of units in such a plan can fall as well as rise. Using our Life Cover Finder, we will provide the cover you need.
- Useful if there is a need to ensure that cover never comes to an end.
- Often competitively priced if taken out early.
- Often backed by an investment element that builds up over time to help keep costs under control later in life.
Many Parasol Money clients choose to take a ‘waiver of premium’ as a low cost option to protect their payments against being unable to work through sickness after 6 months. The insurance company maintains the premium to ensure dependants/loans remain protected.