Life Assurance and Critical Illness
The financial consequences of having a critical illness or dying prematurely can be catastrophic!
Approximately 40% of adults do not have any life or critical illness assurance in place.
One in four adults will suffer a critical illness before the age of 65 and one in three people are at risk of developing cancer. Approximately half of all deaths in the UK are caused by cancer or heart disease. (Source: Office of National Statistics)
More than 1 in 3 people in the UK will develop cancer at some time in their lives. Every two minutes someone in the UK is diagnosed with cancer. (source: Cancer Research UK April & December 2014).
But of course it will never happen to you!
Wills & Lasting Power of Attorney (LPA)
Everyone should make a Will and a Lasting Power of Attorney.
The chances are if you do not have one it is simply because you keep putting it off! You can resolve this right now…
The Financial Conduct Authority does not regulate Wills and Lasting Power of Attorney.
What are the financial implications of you being off sick unable to work long term? Will you be a financial burden on your family?
How will you pay for, your mortgage, other debts, utilities, food? How will you pay for extra help if you need it to get better?
Your family will help all they can but what with? They need money to help.
Your employer may be in a position to keep your job open but for how long?
Inheritance Tax Planning
Two things in life are certain, death and taxes.
Inheritance Tax is currently payable on the value of the estate that exceeds the NIL rate band, whcih is subject to annual indexation. Estates above the NIL rate band of £325,000 (tax year 2014/15) is taxed at 40%. People who have been widowed will also benefit by being able to use any unused portion of their deceased partner’s allowance when they die. So if all the estate was left to a surviving spouse, for which there is no IHT payable, that surviving partner will have the whole £650,000 allowance.
No matter your net worth, it’s important to have a basic estate plan in place. This ensures that your family and financial goals are met after you die. An estate plan will have several elements such as having a will, assignment of power of attorney.