The words Family Protection encompass two different kinds of insurance: Life Insurance and Income Protection should you be unable to work due to illness or accident.

Life insurance and Income Protection

Life Insurance

In our busy world we have little time to think about death and life insurance. The only exception is when we buy a property and need a mortgage. Then, the bank or building society encourages us strongly to subscribe to a mortgage protection policy. We can easily see the importance of it but more to the point, we do want this mortgage!  As far as life insurance is concerned, that is usually as far we are prepared (or coerced!) to go.

Until the day when a cute little baby boy or girl comes into our life, depending on us for everything. The thought of the consequences of our premature death on the little one may be immediate, leading to action or they may take hold of us progressively before taking practical action, making that call.

But be of good cheer  🙂 – life insurance in the U.K is very good value and not expensive.

Example:

  1. John Wood
  2. Age: 35
  3. Non-smoker (premiums usually more than double for Smokers. It is interesting to note that this little monetary incentive is sometimes more effective than all the therapies and ersatz to stop smoking put together!)
  4. Term of the life insurance: 30 years (a smaller term will reduce the premium)
  5. If John moves abroad, he may continue with his life insurance policy with the same premium.
  6. Sum Assured: £1,000,000
  7. Premium: £55 per month (approx), guaranteed not to increase in the future.
  8. By putting the policy into trust, the sum assured on death will not be part of the estate. This legal way, not disputed at all by the tax authorities, has 2 advantages: a- Avoid Inheritance Tax in most cases, b- Avoid waiting months for the Grant of Probate. Good advice from experienced people is vitally important.
  9. Moreover, if John is a company director, the premiums could be paid by his Limited Company and they are tax deductible. This advantage will not be considered as a benefit in kind by HMRC (U.K Tax Office) and therefore will attract neither Income Tax nor National Insurance Contributions.

 

Income Protection

Let us continue with the example of John. The facts given in 1, 2, 3, 4 and 5 above remain the same.

  • Salary: £50,000 per annum.
  • Maximum insurable : £30,000 per annum (approx.)
  • Tax status of the benefits paid: tax free.
  • Waiting period (before the benefits are payable) : 3 months
  • Premium: £50 per month (approx.), guaranteed not to increase in the future.

If you would like to receive more information, please do not hesitate to call us on 0044 (0) 203 137 2857 or complete our proposal request form.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Get in touch

Call Us on +44 (0)20 3137 2857

We are open from 9am to 5pm from Monday to Friday

Request a comparison

Request a Comparison

Fill in a form and we will call you back

Our partners

We build partnerships with reputable insurance companies who are long-established in the expatriate insurance industry. All the international insurance companies we work with have both individual and corporate plans. Find out more about our partners here.

home_partners

Latest tweets

Expat Assure Expat Assure @ExpatAssure Expat Assure is recruiting for a bilingual (French/English speaking) Insurance Sales Consultant to join our team. R… https://t.co/8eQ09vGZOR 3 weeks ago
Expat Assure Expat Assure @ExpatAssure Si vous comptez vivre au Canada, méfiez-vous du site 'It's Canada time'. Ce site frauduleux soutire de l'argent aux… https://t.co/Yu3rsgwPrO 5 weeks ago
Expat Assure Expat Assure @ExpatAssure No deal ou pas, les Européens habitant au Royaume-Uni ainsi que ceux s’y installant avant le 29 mars prochain ont l… https://t.co/RWEaE91zDm 6 weeks ago
Expat Assure Expat Assure @ExpatAssure Having an international health insurance as an expat is not a luxury; it’s often a necessity. Our article explains… https://t.co/0qy6VKQL0Y 6 weeks ago
Expat Assure Expat Assure @ExpatAssure Vous partez vivre en Irlande? Renseignez-vous sur le système de santé irlandais et les choix d’assurance santé expa… https://t.co/ppn758OcTQ 8 weeks ago