This choice is available with any Level Term policy, Family Income Benefit, or Whole-of-Life policy. You have the flexibility to add or remove it from your policy, but inclusion is not possible once your policy has started. Typically, it functions as an inflation index tracker, aligning with the Retail Price Index (RPI) to safeguard your sum assured against inflationary erosion. However, some insurers permit setting a fixed percentage, and the increasing option is flexible, enabling you to skip the increase in one year and exercise the option in the following year.

This insurance policy is tailored for capital repayment mortgages and features a decreasing lump sum. As you make monthly mortgage payments, the sum assured in the policy decreases in tandem with your declining mortgage debt. The premium remains constant and is aligned with the specifications and terms of your mortgage.

While addressing mortgage repayment is crucial, it is essential to contemplate additional financial priorities. Solely focusing on mortgage coverage might leave lingering financial risks. Consulting with an adviser is recommended to evaluate the comprehensive financial impact and explore strategies for mitigating risks.

In contrast to a critical illness policy, this feature is commonly integrated into life insurance and disburses the death benefit in the event of a terminal illness diagnosis with a life expectancy of less than 12 months. Eligibility for this benefit requires validation, including a consultant’s letter and a verified diagnosis by the insurer.

This cover offers a budget-friendly way of providing financial support to your family upon your death. It pays out a tax-free monthly income and is typically maintained until your youngest child achieves financial independence. It can be used in a multitude of ways and should always be taken with an indexation option.

With this policy, your loved ones will receive a lump sum if you pass away or are diagnosed with a terminal illness. This can help them pay for things like taxes, inheritance, or funeral costs.

Since this policy covers you for your whole life, the monthly payments can be quite costly. That’s why it’s important to plan your finances carefully and make sure you can afford it for as long as you live, especially after your retirement.

Directors of limited companies find this insurance type highly beneficial. Essentially a death-in-service policy, it comes with potential tax benefits. While providing a lump sum payment, it does have limitations and should only be employed in conjunction with appropriate guidance.

Relevant Life Cover (RLC) can be structured as either level, decreasing, or increasing. The premiums for RLC are eligible for tax deduction as a trading expense and do not contribute to a P11D benefit, and therefore do not influence the director’s personal tax liability. Additionally, when RLC is funded through a limited company, there are no National Insurance implications. Importantly, the benefit paid under the policy is not registered with HMRC, ensuring it does not affect the pension allowance.