A Term life insurance plan is the most basic form of life insurance and is usually the cheapest way to insure your life. It covers you for a fixed period and pays out a one off lump sum if you die during the policy term. With some term insurance policies you can add additional options, for instance critical illness cover. If you do add on critical illness cover, the plan will pay out once on diagnosis of a qualifying critical illness or if you die during the term of the policy.
This type of plan is designed for those who want to leave a lump sum in the event of their death within a specified time period whilst keeping the cost to a minimum. Term assurance can protect your family from the financial implications of a personal tragedy and is particularly important if you have young children or dependents. It can be used to cover a mortgage, other loan or to ensure that your family is protected from the effects of having to repay a debt after the main breadwinner has passed away. As advisors we can help you find the plan that best meets your requirements.
A Critical Illness plan is designed to pay out a lump sum on the diagnosis of certain specified illnesses. It is often ‘bolted on’ to a life assurance policy as an additional benefit but can also be a standalone plan.
This type of plan is designed for those individuals or families who want a lump sum if they are diagnosed with a serious illness. As an example of where this lump sum could be used is to repay a loan, mortgage, or perhaps pay for time off work. The lump sum could even be used to pay for any necessary alterations to your home. The quality of cover and the illnesses covered can vary significantly between different providers. As advisors we can help you find the plan that best meets your requirements.
An Income Protection plan is designed to pay out a regular income in the event you are unable to work due to an accident or illness. These types of plans continue to pay out an income as long as you are unable to return to work up until the end date of the policy (typically your normal retirement age).
This type of plan is quite often seen as the foundation of any financial planning as it is likely that other plans will have to be given up if you do not have sufficient income coming into the household.
This type of plan is designed for anyone who is working (employed or self employed). It’s worth pointing out that even if your employer provides sick pay, it is unlikely to last for longer than twelve months, so ongoing protection is essential. Plans can be adapted to fit in with any existing protection you might have. As advisors we can help you find the plan that best meets your requirements.
As the name implies, this type of life assurance pays out when you die, whenever that may be. It is usually, but not always, a more expensive option than term assurance simply because the life assurance company knows that it will definitely pay out at some point. Many of these plans offer some form of investment content and so can be more flexible than term assurance and can acquire cash in values.
This type of plan is designed for those who want to leave a lump sum in the event of their death, whenever it may occur. It can be used to pay off debts that will not be repaid during your lifetime or for those who want to leave a lump sum to pay a potential inheritance tax liability.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE INHERITANCE TAX PLANNING ADVICE & ALTHOUGH A WHOLE OF LIFE PLAN CAN AQUIRE A CASH VALUE ITS PRIMARY PURPOSE IS TO PROVIDE FINANCIAL PROTECTION AND SHOULD NOT BE SEEN AS AN INVESTMENT VEHICLE.
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Lakes Mortgages is directly authorised and regulated by the Financial Conduct Authority under reference 605694. Registered in England and Wales No: 8633133. Registered Office: Suite 3B, Holmere Hall, Dykes Lane, Yealand Conyers, Carnforth, Lancashire, LA5 9SN. Calls may be recorded for training and monitoring.