EXTRAS, EXTRAS – READ ALL ABOUT THEM

LIFE INSURANCE – as we have seen in previous items here – has an important part to play in the financial planning of everyone, so it comes as a shock to learn that a third of people have no life insurance cover at all. It is an important way of financially protecting your nearest and dearest should you die during the term of the policy, so it would make sense to go to a financial adviser and assess your needs. The sooner you do this the better – if only for your peace of mind.

Once you have a policy, it makes sense to review it at regular intervals, especially if your income has increased and you need to make more provision. Anyone advising on or selling investments must be authorised by the Financial Services Authority (FSA), either as a company representative or an independent financial adviser (IFA).

Your adviser has to make their position clear and explain whether they offer advice on the products of one company only or a range of companies’ life insurance policies. Insurance companies can be contacted directly for life insurance queries and sales, or you can go to an FSA-authorised IFA who can look at the whole market for a policy that will suit you. But make sure you get life insurance that does meet your needs.

MEANING BUSINESS

Life insurance has a part to play in financial planning for business as well. Key person insurance, for example, can protect against the loss of a key employee upon whom the profitability of a company depends. This is a specialist area that needs detailed investigation and you can discuss the matter with your adviser or the life insurance company salesperson. For a fuller explanation of life insurance generally, go to the Association of British Insurers (ABI) at www.abi.org.uk