Protection

Term assurance is a plan designed to pay out a lump sum should you die or become critically ill within the plan term. Our advisers can help you to decide on the appropriate amount and timescale for cover. As there is generally no cash accumulation, the cost is relatively low. After the end of the term, the policy ceases with no further benefits due.

The benefits

• Provides a cash lump sum to your family and dependants which can be used to pay off a mortgage, cover funeral costs, inheritance taxes, or just to provide an income boost when you need it most
• Fixed or increasing cover and premiums for the full term

Rather than taking out a policy to cover a specific term, this is a life assurance contract that is designed to give you a specified amount of cover for the whole of your life. A lump sum is paid out on death, no matter how long you live. Your premiums are usually guaranteed at the outset so you can include them in your overall budget.

The benefits

• Leave a cash sum to your family and dependants or pay off a mortgage or inheritance taxes after you have died
• Investment growth over the length of the policy can lead to a higher overall payment at the end
• Potential to mitigate the effects of inheritance tax

Life can be full of surprises and not all of them good, so it is an excellent idea to set some money aside in case you find yourself unable to work due to injury or illness. One rule of thumb is to ensure you have enough in your back-up fund to cover three month’s worth of your regular income, but that equates to a lot of savings and many people find it more comforting to know they have a policy in place that will step in if needed.

Combining your savings with an income protection policy could give you the peace of mind you need. This type of policy replaces part of your income (usually between 50% -70%) and pays out until you are able to start working again or retire. It is particularly relevant if you are self-employed or employed with no sick pay to rely on. Everything depends on getting the right policy, so talk to one of our advisers today for professional advice that will help you make the right choice.

The benefits

• Regular tax-free income should you be unable to work, providing peace of mind for you and your family.
• Fixed or increasing cover and premiums for the full term

Critical illness insurance will pay out a lump sum should you be diagnosed with a critical illness such as heart attack, stroke, cancer or any one of the illnesses specified in the policy. You will have the freedom to spend the lump sum as you wish: to pay for treatment, to make adaptations to your home or perhaps to replace lost income. Different policies cover different illnesses so it’s important to make sure you take out the correct plan. Independent advice from the team at Macbeth Scott & Co Life and Pensions will help you make the right decision and to find the best value policy for your circumstances.

The benefits

• Provide a cash sum to you to spend as needed if you are diagnosed with a life-changing illness
• Fixed or increasing cover and premiums for the full term