Daily Telegraph- life insurance guide

If your missing income would affect someone you love if you were to die, there's a case to be made that life insurance would be suitable. More often than not, it's those who have had a 'wake up call' that act on this shortfall, but these are the types of clients who will find it more difficult to get cover. If you have a pre-existing medical condition, see a protection adviser. There are lots of options with flexible underwriting now, and an expert can explain your options. Of course, with greater risk comes larger premiums, but you can decide what you can afford once you have the information in front of you.

Decisions surrounding the protection of your own life and income is an entirely personal one, and there is an argument that anybody with loved ones and dependants should have some form of personal insurance. But from an advice perspective life insurance is the most basic form of protection and is something that anybody with any form of debt and dependants should have. It's always advisable to buy it from a regulated adviser as many things need to be taken into consideration when asessing what cover and additional benefits are most important. These days a life insurance policy is much more than that one that offers things like 24/7 GP calls and mental health support.

Everybody who has people in their lives that are financially dependent on them should have life insurance.

Always go through a broker who will advise on the right amount of cover, how long the policy should last for and any other important variables around the structure, including the right type of trust to use.

It's absolutely key that applications are completed correctly, avoiding any potential issues later down the line which could void the insurance - this is where a broker can add massive value.

A broker can also help with other types of "human insurance" like critical illness cover, and income protection insurance.

Life insurance is there to plug the financial cavity left by someone that you financially rely on should they die. This could be loss of their income not just to support the mortgage but also could be other financial commitments such as debt, spousal/child maintenance, school fees. The premium is calculated on age and health. Although comparison sites are a good starting point as a guide, they don't give you the much needed advice, knowledge and experience that an adviser can such as the added value benefits linked to the policy, how to structure the set up of the policy and how to ensure it pays out the way you want it to should the worst happen. Comparison site products are very much raw and stripped back policies for those that are premium driven to give you the bare minimum in most cases. Also, they may often be offered by a broker from the same insurer at a different price where you get a much better quality product for your needs.

Most people would warrant a good look at what life cover is needed. Single and no dependants would be best served by products that will look after them whilst they are alive, securing long term income and making sure all debts can be cleared if seriously ill. Cost is not prohibitive so is a poor excuse for not covering loved ones. Premiums are available from well under £10 per month, however pre-existing health conditions and lifestyle will impact on costs as they are underwritten policies. That said, even the most poorly or high risk people can secure some form of cover. Accidental death cover from insurers such as Met Life are not underwritten on an individual basis, but offer a good alternative or addition to a family's protection planning. Brokers are responsible for how plans are set up, whereas buying direct comes with the risk of the wrong type of plan being purchased, which is then in the main not set up in a trust, so adds to the value of estates from an IHT perspective.

As we age, concerns about our mortality and the loved ones we might leave behind naturally arise. Life insurance becomes a critical consideration for ensuring their financial security. Generally, there are three approaches to life assurance:

Who cares, I won't be here: This approach is often taken by those without dependants or who don’t prioritise life insurance, potentially leaving loved ones in financial distress.

Needs-based approach: This approach provides a financial safety net, covering essential needs like debts and living expenses, balancing affordability and necessity.

Dream lifestyle approach: Aimed at maintaining or improving dependents' lifestyle, this requires higher coverage and careful financial planning due to higher costs.

Choosing the right approach involves considering your views, family situation and needs, financial situation, goals, and affordability. Consulting a financial adviser can help make an informed decision that aligns with personal circumstances.

Making sure that there is a sum of money left should you die prematurely is important for a variety of people - parents with young dependents, families with mortgage liabilities or homes reliant on the income of the main breadwinner. There are various ways that this protection can be set up - level lump sums, decreasing in line with a mortgage or as a regular payment until a dependent is of age or a liability is no more.
The main benefit of using an advisor is that all these aspects will be looked at and a bespoke plan set out for your specific priorities - advisors should always arrange any life plans in trust to make payments quicker and avoid any unnecessary inheritance tax to your beneficiaries.