The effects of death, long-term sickness or redundancy can often be disasterous in terms of a family’s financial position, which is why for hundreds of years, insurance companies have provided policies to minimise these issues.
Protection insurance is the foundation of anyone’s financial plan, as it helps to protect both income and assets in the event of such an event happening.
Depending on a client’s age and health, most insurances are relatively inexpensive when you consider the benefits covered and can often be put in place relatively easily.
At Bragagnini Associates, we offer specific advice and recommendations on all types of protection insurance via our whole of market approach.
Life Cover (Non-Investment) and Income Protection
The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
Your home is probably your most valuable asset. Mortgage protection plans are designed to protect the payment of your mortgage and enable you to keep your home when the unforeseen happens.
There are various types of plans available to suit everyone’s individual needs.
Single life or joint life policies are available on either a level term basis (normally linked to an interest-only mortgage) or decreasing term assurance (normally linked to a repayment mortgage).
In the event of death, a lump sum is provided that repays the mortgage, leaving the property debt-free.
WHY DO I NEED LIFE INSURANCE?
Life insurance is one of the most important things you can do to take care of your family and loved ones.
If you die without life insurance, your home could be repossessed and your family could suffer serious financial hardship.
Life insurance can be set up in many different ways and it’s important to get the right advice for your needs and circumstances.
Beware of cheap life cover and price comparison websites. Unless you have independent financial advice you could end up with the wrong type of cover or not enough cover and could also be paying too much.
It is important to put your life cover into a trust. This means that the benefits of your policy are given to specific people you nominate, known as your beneficiaries. The advantage of this is a policy validly placed in trust may mitigate the effects of inheritance tax.
At Bragagnini Associates, we have many years of experience in this area and can tailor plans to your personal needs, thus giving you peace of mind and confidence you are in the right hands and, most importantly, that your family and home are fully protected in the event of your death.
Deciding which type of family protection is right for you depends on your personal situation and circumstances, and can often change many times during your lifetime.
Cover can be arranged on a single or joint basis and by putting your plan into a trust, the proceeds are paid tax efficiently and quickly.
At Bragagnini Associates, we have access to the whole of the market, which means you can be sure of the very best protection available at the very best price.
It is so important to speak to an independent financial adviser for trusted advice. All our advisers are fully qualified and have a wealth of expertise in this area.
WHOLE OF LIFE COVER
A whole of life plan is designed to give cover for the whole of your life, unlike term assurance which only pays if you die within the policy term.
Whole of life cover is more expensive than other types of life insurance as it is guaranteed to pay the sum assured.
The monthly premiums are invested by the plan provider into a life fund.
The amount it will pay out will depend on the terms and conditions of your individual plan.
This is a specialist area where independent financial advice is needed. At Bragagnini Associates, we have fully qualified advisers to help you in this area of your financial planning.
Normally used for family protection reasons, but rather than having a pre-determined expiry date, it pays out irrespective of the client’s age, making the cover more expensive than term assurance.
This type of cover is often used to cover potential inheritance tax liabilities.
PRIVATE MEDICAL INSURANCE
This type of cover can be taken out for an individual or for a family and covers things such as hospital cover, outpatient care and home nursing.
Various levels of cover exist from a variety of major providers.
FAMILY INCOME BENEFIT
This type of plan is designed to replace missed income from a parent or guardian in the event of death.
Especially important to families with dependent children should the main breadwinner die.
Income can be paid monthly, quarterly or annually and is paid tax-free.
This is often one of the cheapest ways to protect your loved ones and ensure their quality of life can continue without you.
DIRECTOR & SHAREHOLDER PROTECTION
Where a company or business has built up a capital value, it is important that should a director or partner die, then the value of his or her share is passed onto their family and the remaining shareholders retain operational control of the business.
By the use of life insurance and cross-option agreements, it is possible to put such an arrangement in place relatively easily and cost effectively.
INCOME PROTECTION INSURANCE
This type of plan is designed to replace your income in the event of an accident or sickness that results in you not being able to work.
Many companies do not pay their employees should they be absent from work for long periods due to sickness and the employee is therefore reliant on State Statutory Sick Pay.
Income protection, or personal health insurance provides cover in such circumstances, providing a regular income for a fixed term or until the client returns to work, retires or dies.
This cover is taken out on a single life basis only and cover is linked to current earnings.
ACCIDENT, SICKNESS & UNEMPLOYMENT COVER
Redundancy can happen to anyone, especially in times of economic uncertainty, and this type of cover can be difficult to arrange with many insurers placing restrictions on the cover offered.
Government legislation is constantly changing and although you may qualify for some government benefits, these will often be minimal amounts and could result in a shortfall with your mortgage lender.
In essence, it is a policy linked to a mortgage and is designed to pay the monthly mortgage payments in the event of accident, sickness or unemployment.
Clearly, this type of policy is very important, yet figures suggest that only a quarter of the UK population have this type of cover. Independent advice is clearly the best thing for anyone considering this type of cover.
BUILDINGS & CONTENTS INSURANCE
Whether you’re a landlord or an owner-occupier, buildings insurance isn’t compulsory under the law. However, if you have a mortgage, then insurance will usually be a requirement of your mortgage lender.
Contents insurance is normally incorporated into the same plan, although it can be taken out in isolation.
A simple and relatively inexpensive type of insurance which is reviewed annually can be paid for either monthly or annually in advance.
This type of cover is taken out by a company and is designed to protect your business against the financial loss of a key person.
The lump sum generated is paid to the company to help cover the costs of replacing such a key individual or recovering lost profits due to the loss of the individual.
This is especially important for all businesses no matter the size. The death of a key person can be disastrous, whether you are a limited company, partnership or sole trader.
CRITICAL ILLNESS COVER
This cover pays out a lump sum in the event of a client being diagnosed with a ‘critical illness’.
Terms and conditions differ from insurer to insurer. However, most policies cover illnesses such as cancer, heart attack, multiple sclerosis, major organ transplant and other major or terminal illnesses.
The lump sum provided can be used to pay off a mortgage or other debts, pay for medical care, recover lost income or simply to let the client and their family realise some lifetime goals at a time of such adversity.
The policy may not cover all definitions of a critical illness. For definitions of illnesses covered please refer to the Key Features and Policy Documents.
Bragagnini Associates Financial Solutions Limited is an appointed representative of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority.
Bragagnini Associates Financial Solutions Limited registered number 07012745 is registered in England and Wales at 3rd Floor, 70 Gracechurch Street, London EC3V 0HR.
This website is aimed at UK residents only.
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