Insurance

Life Policies

When you consider your financial position seriously there are opportunities to benefit from life policies which are normally either; term assurance, whole of life policies and endowments would be included. Term assurance is a policy insuring against death, but within a specific period, and once that period ends the cover stops too. There is no cash value or surrender value at all.

Whole of life cover is a permanent policy guaranteed to pay out on the death of the holder provided the premiums have been kept up to date. Those premiums provide for a combination of life cover and investment which gives the policy a surrender value. So, this type of cover can help to pay towards any inheritance tax liabilities which may become due or to pass on to family.

Keyman Policies

Businesses wishing to protect their position in the event that a key person dies can take out appropriate cover. It is normally assumed that the proceeds will be used to keep the business stable by recruiting a replacement or it may be used to replace the profits lost while the business recovers. This can be so beneficial if a chief player is no longer there to steer the business forward. This type of policy can be particularly helpful for the partners in a Partnership which may otherwise have to be dissolved. Here the policy proceeds can allow the remaining partners to buy out the deceased’s share by ‘paying off ‘the spouse.

Similar measures can be taken to protect the owners of limited companies.

To find out more or if you would like to arrange a free initial consultation where you can discuss how you want us to listen and help in more detail, please call Alan or Gillian on 01302 311777. Alternatively you can email alan@ar-accountants.co.uk or gillian@ar-accountants.co.uk