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Insurance cover for the family

If you have a family or other dependents Enable’s IFAs are here to help you make sure you have the right protection or cover for yourself I you are the main breadwinner. If you are trying to work out how much cover you need the most common rule of thumb is for the cover to provide roughly 10 times the annual income of the highest earner till kids have finished full-time education

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This is of course just a rule of thumb and you can decide for yourself what is best for you and your family but there are a few other things you might want to take into consideration as you try and make the decision. Any cover should aim to be able to pay off any outstanding debts especially the mortgage if you have a separate policy. It is a good idea to think through the immediate outgoings that your dependents may need to pay for without you some like to look at future spending you would have wanted to make, e.g., supporting your children through university.  There are also additional expenses that your untimely death may trigger i.e. funeral costs.

Ten times your income may seem like a lot of money but it is important to remember that inflation will mean the value of any payout could be a lot less in10 years’ time.  Surviving dependents don’t have to pay any income tax on this kind of insurance but it does count as part of your estate so if your total assets are above the inheritance tax (IHT) threshold, they will have to pay 40%. If you want to talk though the kind of protection your family might need Enable’s IFAs are here to help.

Source: Money Saving Expert

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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