This forms the cornerstone of any financial plan. Whether dealing with a family or a business this provides the finance necessary in the event of a key member being incapacitated or dying to enable the family or business to continue without financial hardship.

Family

The days when most people worked for large companies offering substantial benefits through a final salary pension scheme are long gone. If you are not fortunate enough to receive these benefits it is likely that you will need to consider higher amounts of life cover to protect your family. A family with two children would be entitled to parent's bereavement income as shown below.

State Benefits

Widowed Parent's Allowance is paid until the youngest child reaches nineteen if they are in full time education. The basic allowance is £4,539 per annum plus £488 per annum for the first child and £590 for the second.

Other areas to Consider

Replacement of income in the event of long term sickness

Payment of a lump sum in the event of diagnosis of critical illness such as cancer, stroke or heart disease.

Business Cover

If you are a co-director of a company or a partner in a partnership have you considered what would happen should one of the owners die in unforeseen circumstances?

Business Protection, either through Whole of Life or Term Assurance, can be set up to ensure that the surviving director/partner retains control of the business.

This is a complex area and care needs to be taken when setting up the policies to ensure that they don't fall foul of Inheritance Tax or Pre-Owned asset tax.

If you would like further detailed information about this plea.