Income protection will provide you with an income if you are unable to work through accident or illness.
At some stage in our lives, there is a significant chance that we will be off of work through accident or illness for a significant period of time. How would you and your family cope with state benefits alone?
Without an income, your lifestyle could be dramatically compromised and may even mean having to sell your home due to affordability.
Income Protection can pay out until retirement, you return to work or in the event of your death until the end of the policy term.
Income protection policies will provide you with a tax-free percentage of your earnings.
They are also paid out with a range of deferred (waiting) periods between day 1 and 52 weeks.
Income protection policies are very unique to the individual and require specific tailored planning.
We all have varying job roles and sick pay arrangements with our employers, these will determine the price of the policies and as to what and when they cover.
An income replacement policy is recommended for any adult who is in current employment. Your salary is usually critical to your family’s lifestyle so please call us for tailored advice.
CFM Financial Planning can explain the benefits of placing policies into trust.
There are several benefits to trusts that will assist your family at this traumatic time.
The main benefits are as follows:
- The lump sum will not form part of your estate for inheritance tax purposes on death.
- Avoids the probate process and ensures a speedy payment to your beneficiaries, the people who need it most.
- Allows you to nominate the beneficiaries.
Trusts are flexible and you always remain in control.