SFS News

One small step for Man ...One giant leap for Parents

£1,000,000 of invested capital earns about £56,000 before tax. Hands up all those with £1 million pounds of life insurance! No one. Why not?

Well, buying that amount of life insurance is expensive; also there is a niggling image of our wives lying on a beach, dressed in a black bikini, living it up; and lastly, we think it won’t happen to us. So, how do you leave your family with adequate provision if you die? The answer is to compartmentalise your liabilities:

• Mortgage. Take out a reducing term policy to clear it and any other liabilities you might have credit cards or bank loans.
• Replacing Income. Top up your company life insurance scheme and cash in your pension plan.
• School Fees. Buy a dedicated school fees life and/or critical illness insurance policy and those fees will be paid direct to the school (thus avoiding becoming part of your spouse’s taxable income and getting caught up in probate). In addition the payouts should increase annually at well above the Retail Price Index in order to match school fee inflation.
  

So, stop worrying about whether your children will be able to stay in their school, should you die, and leap out of bed and buy a dedicated school’s insurance policy today.

Life Insurance. From as little as £7.15 a month. www.sfs-group.co.uk