At Clifford Davis we are on hand to sit down with you and discuss all your requirements and needs – advice that may prove invaluable when protecting the important things in your life.
We can help you deal with the ‘what ifs’ in life such as illness, injury or even death. By thinking about these things now, you can plan ahead and gain peace of mind that you and your family will be looked after financially.
Reviewing Existing Plans
We also work with our clients to review historic policies that they may have in the areas of life insurance, critical illness cover and income protection. Our aim is to ensure that these policies are still relevant and suitable.
The most basic type of life insurance policies are called term insurance policies, where an individual is covered for a specified amount of money, over a specified period of time. If you die within the term, the policy pays out. If you don’t die during the term, the policy doesn’t pay out and the premiums you’ve paid are not returned to you.
There are two main types of term assurance, level-term and decreasing-term insurance.
Level-term Life Assurance
A level-term policy pays out a lump sum if you die within the specified term. The amount you’re covered for remains level throughout the term – hence the name. The monthly or annual premiums can be set on a guaranteed basis (they remain the same) or on a reviewable basis (they can go up). It is also possible to have protection against inflation built-in to such policies i.e. the lump sum goes up with inflation each year.
A typical scenario for a policy like this might be where a father wishes to leave a set lump sum in the event of his death for his family.
Decreasing-term Life Assurance Policies
With a decreasing-term policy, the amount you’re covered for decreases over the term of the policy. These policies are often used to cover a debt that reduces over time, such as a repayment mortgage.
Premiums are usually significantly cheaper than for level-term cover as the amount insured reduces as time goes on. Decreasing-term insurance policies can also be used for inheritance tax planning purposes.
Talk to the team
Have a question or query, get in touch with our team today.
About Clifford Davis
Clifford Davis is a premier provider of property-related financial advice. Based in Barnet, North London, we pride ourselves on being able to advise and to provide guidance in all areas of property-related finance.