BGFS Associates

To put it simply, Life Cover Isn’t For Your Benefit.
It’s for those you don’t want to leave with financial problems.

Houses, home contents, cars, boats, holidays, personal items are insured with little forethought. Why? In most cases, the policy is taken out to cover against their loss or to protect you in the event of a third party claim.

In a working lifetime a person will almost certainly generate an income that far exceeds the value of personal possessions, but often that income is the last thing to be protected. The replacement cost of home contents or a car may be considerable, but it is insignificant compared to the devastation caused to dependants when all income is lost.

It pays to remember that the insured person pays the small cheque to guarantee the insurance company will pay the big cheque,– when it’s needed most – after the insured and their income no longer remain.

A quick calculation. How many months would your dependants cope financially if your income were to suddenly expire? Do the calculation NOW; just divide your monthly income into your savings and existing life cover. Sadly, in the absence of existing life cover, the answer for many wouldn’t be more than a few months.

Considerations

It has been said. “I don’t want my partner to have more money after I’m dead than when I was alive” and, “£xxx,xxx seems a lot of money. Do they need that much?”.
It’s unlikely that they will be rich! These days, unless the sum assured is substantial (£Million+), dependants will certainly not be wealthy.

How much money will you earn over the period until your children are financially independent, or your partner has retired? Life Insurance would maintain the standards you’ve worked so hard to provide your dependants with and will want them to retain. Children’s education, upbringing, holidays and weddings would still need to be paid for.

Following death, any contributions made into existing pension arrangements would also cease. How would a partner receive income in their latter years if they were unable to make necessary contributions into a pension fund of their own whilst bringing up a family? The tragic loss of a partner or parent is enough to bear, without the loss of the family home and lifestyle as well.

Fortunately, timely steps can be taken to ensure adequate family protection is in place.

Business Protection

Life insurance can also provide protection for your business.

Would you, your spouse, or business partners be left in a difficult financial position in the event of a business partners’ untimely death?

A financially weak business is worth a lot less to a buyer!

• What would happen to a business if a key person were to die?
• What would happen to ongoing projects?
• How long would it take to replace the key person?
• Could the firm cope with the loss of revenue until a replacement was found?

If you require advice on any aspect of personal or family protection please contact us