Mon-Thur 10:00-19:00 Fri 10:00-16:00

Blog

Whole of Life Insurance and Inheritance Tax

Louise Cook - Tuesday, May 21, 2019

Nobody wants to think about what happens when they’re gone. However, as the old saying goes “There are only two things in life that are certain – Death and Taxes”. You can’t do much about the death part, but you can certainly prepare for some of the taxes you will be expected to pay (or, in this case - taxes your family & beneficiaries will have to pay).


 

Will, you (or more specifically your estate) be liable for inheritance tax upon your death? If the answer is yes - here is some information you may find invaluable;

  • Inheritance Tax is currently payable at a rate of up to 40% on the value of your estate above the threshold of £325,000. If you are married or in a civil partnership, any unused portion of your threshold allowance can be transferred to your spouse when you die
  • There is an additional tax-free allowance which can be used against the value of your estate if your home is passed to a direct descendant. This tax year, the allowance is £150,000 for an individual, increasing to £175,000 by 2020/21. This amount can double if you are a spouse or in a civil relationship.
  • If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren your threshold can increase to £475,000
  • Some gifts you give while you’re alive may be taxed after your death. Depending on when you gave the gift, ‘taper relief’ might mean the Inheritance Tax charged on the gift is less than 40%
  • Other reliefs, such as Business Relief, allow some assets to be passed on free of Inheritance Tax or with a reduced bill

One way of swerving a hefty inheritance tax bill is to take out whole of life insurance.

Whole of Life Insurance basically means you pay monthly premiums up until you shuffle off this mortal coil. Upon your death, your loved ones will receive a guaranteed lump sum that covers any Inheritance Tax (a predetermined amount can be agreed when taking out the policy).

The thought of being able to cover a subsequent inheritance tax bill on behalf of your loved ones is both comforting and practical. It will also, of course, be very much appreciated by your beneficiaries.

If you are considering taking out whole of life insurance (or indeed life insurance) visit www.prosurance.org or contact one of our insurance experts on 01204 859709.

 

Depression and Income Protection Insurance

Louise Cook - Friday, May 10, 2019


 

Over the past decade, we have seen an increase in the awareness and acceptance of mental health issues. From the steady trickle of celebrities and high profile individuals admitting that they, too, have their struggles with mental health (for example only this week Jason Manford spoke out about his most recent battle with depression) to high profile campaigns such as Shout – the free text service for those experiencing a crisis.

Mental health issues are now being recognised, treated and monitored. We have come on leaps and bounds since the bad old days of stigma and denial – particularly in the workplace. For example, mental health days are now common practice in many large corporations. If you don’t feel up to facing the world (or can’t) because you’re in the middle of a crisis - you can now safely take time off to re-balance your mental state, just as you would if you had to recover from a physical illness.

Of course, there are exceptions to the rule – we still, as a society have a long way to go. Some people still believe in ‘pulling yourself together’ but, as anyone who has ever suffered a mental health episode or long-term mental illness knows, this is simply not possible (if you could, you would!). The thought of going into work and handling a potentially stressful workload, coupled with the usual office politics - may feel insurmountable. This is where income protection insurance can come in.

Should you suffer a mental health crisis and need to be signed off work, the dread of having to survive on SSP can prevent you from taking off this much-needed time to recuperate mentally. Who needs to be worrying about paying their bills when they’re already stressed and anxious? Taking out income protection insurance can help alleviate this worry. Of course, every insurance provider offers different policies, it is important to check that the policy you take out provides adequate cover.

If you are considering protecting your income, Prosurance can offer guidance and advice on up-to-date income protection insurance policies – tailored to your specific requirements. Call 01204859709 or visit www.prosurance.org for more details.

 

You’re more Likely to Insure your Phone than your Income - Seriously

PRO surance - Tuesday, April 30, 2019

Yep, you read it right. It’s a fact. Apparently, we are more concerned about insuring our mobiles than we are our salaries. As crazy as it sounds, the dread of not being able to take a selfie appears to be worse than not being able to pay the rent.

Let’s face it we’ve all felt the initial, absolute horror of dropping our phone in a puddle (down the toilet) or from a great height (kitchen floor). However, this is just a temporary inconvenience - finding yourself long-term sick or injured and being plunged into a financial crisis is infinitely more worrying. This is where Income Protection Insurance steps in. 

 



The problem appears to be this - we can imagine dropping/smashing/losing our mobile phones but falling ill unexpectedly? Being involved in an accident and incapacitated long term? More difficult to imagine. We don’t want to think about it & certainly don’t want to imagine that anything bad can happen to us when we least expect it (who does?). However, sadly, things do happen that are beyond our control. With the average age of a claimant for Income Protection Insurance now being only 33, it’s something we must consider.

It’s time to get practical. Would you be able to survive on Statutory Sick Pay at £94.25 per week? Most people wouldn’t - protecting your income is possibly one of the best things you can do at any age. Whether you’re unfortunate enough to become ill and need time to recover or are involved in an accident that needs a hospital stay. The last thing ANYBODY wants to think about when they’re convalescing is paying their bills. Taking out Income Protection Insurance not only covers your day to day needs it also covers bigger concerns such as a mortgage, utility bills and council tax.

Imagine being able to recover or recuperate without having to worry about how you and your family will manage on SSP? Stress and worry are both contributing factors when it comes to wellness – take these factors away and your recovery time is likely to decrease - getting you back to work both mentally and/or physically well.

Quite simply protecting your income with Prosurance could be the best decision you make today.

If protecting your income is something you are considering contact one of our advisors today on 01204 859709 to discuss your options. Our experts are fully qualified, and our policies are underwritten by AXA Insurance UK Plc.

PROsurance offer fully comprehensive policies, rated 5 Star by Defaqto and are Authorised and regulated by the Financial Conduct Authority (FCA)