Good reasons to take out life insurance cover
- Providing some security against future money worries for your loved ones
A life insurance policy can bring financial security in many forms. Perhaps your partner won’t have to work, allowing them to spend more time with your children if you pass away. Or, it could help to pay off your mortgage, or maybe simply make the day to day a little more comfortable.
- Funding your family future
Life insurance could make sure that you can still support your children through those big events in life and take the financial strain off your partner if you weren’t around.
For example, we all want to see our kids get the best education possible, including perhaps going to university. It doesn’t come cheap these days. Nor do driving lessons, weddings or any number of other activities.
- A tax-free sum for your family
When you pass away, your estate may have to pay 40% tax on the value of your overall assets over the £325,000 inheritance tax threshold. If this might affect you, writing your life insurance policy ‘in trust’ could ring-fence the payment so that it’s separate from your estate and therefore not subject to inheritance tax. It would also be paid at the point of your passing rather than part of probate.